Acknowledgement Letter
The letter received by bidders after the ICN has assessed the LIDP. This is achieved when the bidder’s LIDP is submitted before the procuring agency’s due date, and all sections have been adequately completed.
Apprentices
Undertake under a training contract with an employer that combines structured training with paid employment. Apprenticeships are generally at Certificate III level and above and extend across a range of trades. Apprenticeships typically have a duration of three to four years and are competency based. For an apprentice to be counted towards the MPSG requirement for a project they must be:
- undertaking a course that relates directly to their role on a Local Jobs First Project and is consistent with the training contract, and
- registered with the Victorian Registration and Qualification Authority (VRQA).
Australia and New Zealand Government Procurement Agreement (ANZGPA)
The agreement was entered into by Australian State and Federal Governments and New Zealand Government in 1991. The objective of the agreement is to maximise opportunities for competitive Australian and New Zealand suppliers to supply into government procurement. The agreement aims to reduce the costs of doing business for both government and industry and applies to all Australian and New Zealand local industry participation policies.
Benchmark
The methodology by which a bidder evaluates a proposal from a subcontractor. Benchmarks can be based on “whole-of-life” parameters and appropriate quality and performance indicators and should include an evaluation of local content commitments.
Cadets
Undertake entry-level roles that combine formal tertiary training with paid practical work experience. There are many types of cadetships offered across different industries. Cadetships can vary in length but are generally 18 months to 2 years. A cadetship does not fall under a training contract. For a cadet to be counted towards the MPSG requirement for a project they must be:
- enrolled in Australian tertiary education
- receiving learning opportunities as part of their engagement on a Local Jobs First project (e.g. cadets in architecture, quantity surveying, and engineering), and
- undertaking work that is directly tied to their associated tertiary qualification.
Cadetships are different to professional traineeships (an employee who is not in an entry level role and is undertaking professional development training), which cannot count towards MPSG.
Contestability assessment
Refers to the review of project information to assess contestable and non-contestable items based on benchmarking of local capability to determine if there are competitive international and local suppliers that can supply the good or service.
Contestable Goods and Services
Refers to the goods and services when there are competitive international and local suppliers that can supply the good or service. Competitive means the suppliers can offer comparable goods or services that meet the specifications given by the agency. Contestable items can be goods or services at any stage of a project.
Contract Manager
Refers to the person within the relevant agency responsible for managing the Local Jobs First process for a contract.
Department of Jobs, Skills, Industry and Regions
The Victorian Government department responsible for administering the Act and Local Jobs First.
Employment
Refers to the number of actual new or retained (i.e. existing) annualised employee equivalent opportunities (jobs) to be created in ANZ as a result of the contract.
Note: Annual Employee Equivalent (AEE) replaces Full Time Equivalence (FTE) and is calculated by dividing the total number of ordinary working hours that an employee worked and was paid over the reporting period (including paid leave) by the total number of full-time working hours paid per annum (this is generally 38 hours per week for 52 weeks = 1976).
Expression of Interest
Used to identify suppliers interested in, and capable of, delivering the required goods or services. Potential suppliers are asked to provide information on their capability and capacity to do the work. It is usually the first stage of a multi-stage procurement process.
Invitation to Supply
A process of inviting offers to supply goods and/or services. This process covers both the Request for Quotation and Request for Tender process.
Jobs Created
A job (one AEE) that has been specifically employed by a supplier or subcontractors, because of the work generated by a specific project.
Jobs Retained
A job (one AEE) that has been working for a supplier or subcontractor before signing a project contract, working in tasks/works related to the project.
Local
Means all suppliers producing Victorian, Australian or New Zealand goods or services or when they have added value to imported items, such as providing a local employment outcome to an imported product.
Local Content
Relates to goods that are produced by local industry, services that are supplied by local industry, or construction activities carried out by local industry. Local Content is intended to capture all suppliers producing Australian or New Zealand goods or services or when they have added value to imported items. Local assembly of imported materials, transport of goods, and local labour are all examples of local content or local added value.
Local Industry
Means industry and other businesses based in Australia or New Zealand.
Local Industry Development Plan (LIDP)
A document prepared by the supplier as part of the Expression of Interest, Request for Tender and/or tender submission for a Local Jobs First project. The LIDP details the supplier’s commitment to address the Local Jobs First requirements and details the expected local content and job outcomes. An LIDP must have an ICN Acknowledgement Letter from the ICN to be compliant.
Local Jobs First Administrator
Supports implementation, monitoring, reporting and compliance activities within agencies. Further information can be found at https://www.localjobsfirst.vic.gov.au/agency-guidance.
Local Jobs First Commissioner
An independent statutory officer with advocacy, engagement and compliance powers in relation to Local Jobs First. Further details can be found at https://www.localjobsfirst.vic.gov.au/local-jobs-first-commissioner.
Local Jobs First Policy
Comprises the Victorian Industry Participation Policy and the Major Projects Skills Guarantee. The Local Jobs First Policy may include any guidelines or material prepared by the Minister responsible for Local Jobs First regarding the application of, and procedures to be followed in complying with the Act, any regulations or the policy. For the purposes of the Act, the Local Jobs First Policy includes the Local Jobs First Policy document, the Local Jobs First Supplier Guidelines and Local Jobs First Agency Guidelines.
Local Value Added Content
Refers to the products or services that are added locally onto an imported product.
Major Projects Skills Guarantee (MPSG)
A policy that provides job opportunities for ATCs on high value construction and infrastructure projects.
Non-contestable Items
Items that are considered as only being available through the international marketplace or local suppliers only. That is, it is considered that there is no current competition between international and local suppliers to provide the good or service.
Non-contestable Project
A Standard Project or a Strategic Project that is determined to be non-contestable in accordance with section 4B of the Act. Agencies are not required to apply Local Jobs First to a non-contestable project.
Off-site Work
Work that is conducted away from the construction site by subcontractors to deliver inputs to a project, including prefabricated or modular components. Examples of such inputs include steel panels and frames, precast concrete, switchboards, wiring systems, modular systems or preassembled components.
Practical Completion
Has the same meaning as specified in the contract for the project or, if the contract does not specify the meaning of that term, it means the day on which all of the supplier's obligations (other than minor or administrative obligations) to provide goods or services, or carry out construction activities, under the contract are fulfilled.
Request for Tender
An invitation to supply or a request for offer against a set of clearly defined and specified requirements. Invitees are advised of all requirements involved including the conditions of participation and proposed contract conditions.
Rural and Regional Victoria
Has the same meaning as in the Regional Development Victoria Act 2002. That Act defines Rural and Regional Victoria as the 48 local government areas, including six alpine resort areas. The 10 regional city local government areas are Ballarat, Greater Bendigo, Greater Geelong , Greater Shepparton, Horsham, Latrobe, Mildura, Wangaratta , Warrnambool and Wodonga. The remaining 38 local government areas, including six alpine resort areas, are referred to as the rural local government areas.
SME
Means small to medium-sized enterprises.
Sole Entity Purchase Contract (SEPC)
A procurement arrangement established when a sole organisation has a specific requirement for frequently purchased goods and services. A sole supplier or panel of suppliers are appointed to provide goods or services specific to an agency over the life of the contract.
Standard employee
All employees not classified as apprentices, cadets or trainees.
State Purchase Contract (SPC)
Refers to standing offer agreements for Victorian Government common use goods and services, which are established when value for money can best be achieved through aggregating demand. SPCs are established and managed by the Department of Government Services (DGS) or other government entities with specific knowledge and business drivers. A sole supplier or panel of suppliers are appointed to provide goods or services over the life of the contract, for use by Victorian Government departments and agencies.
Trainees
Undertake entry-level roles under a training contract between an employer and a trainee that combines training with paid employment. Traineeships are undertaken at Certificate II level and above including Diploma and Advanced Diploma. Traineeships typically have a duration of one to two years and are competency based. Traineeships can be in areas including civil construction, design, business services, information technology, human resources and community services. For a trainee to be counted towards the MPSG requirement for a project they must be:
- undertaking a course that relates directly to their role on a Local Jobs First Project and is consistent with the training contract, and
- registered with the Victorian Registration and Qualification Authority (VRQA).
Traineeships are different from professional traineeships (an employee who is not in an entry level role and is undertaking professional development training), which cannot count towards MPSG.
Training Contract
A formal agreement between an employer and an apprentice or trainee. Further details can be found at www2.vrqa.vic.gov.au/training-contracts. The term has the same meaning as in the Education and Training Reform Act 2006, which defines a training contract as an apprenticeship training contract or a traineeship contract.
Value for money
A balanced judgement of a range of financial and non-financial factors. It considers the mix of quality, cost and resources; fitness for purpose; total cost of ownership and risk. Consistent with the definition in the Act, value for money has the same meaning as the relevant supply policy, standard or direction under the Financial Management Act 1994 or the Project Development and Construction Management Act 1994 (as the case may be). For more information about value for money when procuring goods and services see: https://www.buyingfor.vic.gov.au/value-money-goods-and-services-guide.
Victorian Management Centre (VMC)
Online system hosted by ICN and used by agencies and suppliers for Local Jobs First project registration, reporting and completion.
Work Package
Used to define and group different parts of a project in a way that helps organise and define the overall project.