The term agency refers to all Victorian Government departments and agencies subject to the Financial Management Act 1994 and the Standing Directions of the Minister for Finance for financial management that apply from 1 July 2016 onwards.


Apprenticeships are undertaken under a National Training Contract between an employer and an apprentice 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 nominal duration of three to four years and are competency based

Annualised Employee Equivalent (AEE)

Annualised employee equivalent (AEE) is the measure used to calculate employee related commitments, such as job or apprenticeship numbers associated with a project. It is calculated by dividing the total number of ordinary working hours that an employee worked and paid over the reporting period by the total number of full-time working hours paid per annum.


The term bidder refers to the organisation that, if successful, will be contracted to deliver the procurement activity for the Victorian Government.


Cadetships combine formal tertiary training with practical work experience. Cadets are individuals enrolled in a recognised tertiary level organisation and who receive structured learning opportunities as part of their engagement to a Local Jobs First project (e.g. cadets in architecture, quantity surveying, and engineering). Cadetships vary in length depending on the vocation but are generally 18 months to two years in length. A cadetship does not fall under a National Training Contract.

Contestable Goods and Services

The contestability of goods and services influences the local content. Goods and services are considered contestable when there are competitive local and international suppliers.

Non-contestable goods and services are those that are local by nature, or those goods and services that can only be sourced internationally.

Contract Manager

The contract manager refers to the person within the relevant agency responsible for managing the procurement activities and the Local Jobs First process for a particular contract.

ICN Analytics

ICN Analytics is a secure network platform that must be used by all government agencies and their suppliers to collect and monitor local content and jobs data from May 2018, for projects worth $20 million or more. Suppliers can directly enter their project data including local content spend and employment hours into the system using secure logins and passwords. The service is funded by DJPR at no cost to industry or agencies.

Interaction Reference Number (IRN)

An Interaction Reference Number must be obtained for grant projects as part of the process for complying with the Local Jobs First. An IRN is obtained from the ICN (Victoria).

Industry Capability Network (Victoria) (ICN)

The Industry Capability Network (Victoria) is a not-for-profit organisation funded by the Victorian Government to support the delivery of the Local Jobs First.

Its key responsibilities include: managing the Victorian Local Jobs First Management Centre portal where tenders are registered, identifying local products and services that meet the contract requirements, acknowledging and evaluating bidders’ local content commitments and providing local suppliers the opportunity to register interest in upcoming government projects.

Local Jobs First Model Clauses

Local Jobs First model clauses must be applied by Victorian government agencies in tender and contract documentation for all Local Jobs First applicable projects. The model clauses can be strengthened by agencies as appropriate to align with their tender and contracting documents where required.

Local Jobs First Thresholds

The Victorian Government has established the following thresholds, representing a project’s total budget, from which Local Jobs First must be applied by agencies: $1 million and above in regional Victoria; and $3 million and above in metropolitan Melbourne or state-wide. For grants, Local Jobs First applies where the value of the Victorian Government grant is $1 million and above in regional Victoria; and $3 million and above in metropolitan Melbourne or state-wide and the recipient is not a State or Commonwealth government agency.

Additional requirements apply for projects valued at $50 million and over, or those projects deemed by government to be significant. These projects are referred to as Strategic Projects.

Local Jobs First Administrator

Each agency must nominate a Local Jobs First administrator as a coordination point to support and manage an agency’s compliance with VIPP, including the registration of projects with the ICN and coordinating the agency’s monitoring and reporting requirements for the Local Jobs First Annual Report, Strategic Projects Forward Plan and through the agency’s normal financial reporting mechanisms.


Australia and New Zealand are treated as a single market for government procurement under the Australia and New Zealand Government Procurement Agreement.

All other jurisdictions are considered ‘international’. In addition, items imported into New Zealand as part of New Zealand-sourced goods and services are considered international.

Local Content

Local Content refers to all suppliers producing Australian or New Zealand (ANZ) goods or services or when they have added value to imported items.

The ‘local content’ (ANZ value added activity) of a good or service is determined on a cost basis and is the part of a product or service left once the cost of the international component has been subtracted. It can be expressed by the following equation:

Local content = total cost of the good or service less international content

Local Industry Development Plan (LIDP)

A Local Industry Development Plan (LIDP) is a document prepared by a tenderer that outlines the supplier’s commitment to address the minimum local content requirement and other conditions set by government for Local Jobs First Projects. The LIDP must have an ICN acknowledgement letter.

Major Projects Skills Guarantee (MPSG)

The Major Projects Skills Guarantee is a policy that provides job opportunities for apprentices, trainees and cadets on high value construction projects.

Office of Industry Participation and Jobs

The Department of Jobs, Precincts and Regions (the Department) has lead responsibility for Local Jobs First, including policy oversight, preparing the whole-of-government annual report on Local Jobs First compliance under the Local Jobs First Act 2003, developing the Forward Plan of Strategic Projects on a regular basis, contracting the ICN to support Local Jobs First implementation, and providing advice to agencies and the ICN on the application of Local Jobs First.  The Office of Industry Participation and Jobs is located in the Advanced Manufacturing Branch of the Jobs, Innovation and Business Engagement Group of the Department.

Project value

The value of the project refers to the total budget allocated over the life of the project and not the value of individual contracts, excluding GST.


Project refers to the procurement of goods, services or construction works, that may be limited to a single contract or may involve several contracts under a single broader project.  In determining the project value for Local Jobs First purposes, the value of all activities and contracts under the project are to be included.

Procurement Activity

Procurement is the acquisition of ‘goods and services’ and ‘construction related works and services’ by any contractual means including purchase, hire, lease, rental, exchange, competitive tendering and contracting arrangements across all stages of the procurement process.


A supplier is a contractor or bidder responding to the Victorian Government invitation to supply goods, services or provide construction services. Suppliers can also be a secondary organisation engaged to provide goods or services as part of a larger project.


Traineeships are undertaken under a National Training Contract between an employer and a trainee that combines structured training with paid employment. Traineeships are undertaken at Certificate II level and above including Diploma and Advanced Diploma.

Victorian Local Jobs First Management Centre (VMC)

The Industry Capability Network (Victoria) hosts the VMC, which is the online platform for agencies to register their tenders and for shortlisted bidders to prepare an online LIDP.  The VMC also assists businesses and Victorian government agencies to manage their compliance with Local Jobs First.


The Local Jobs First - Victorian Industry Participation Policy (VIPP) is an industry development policy that helps ensure competitive local businesses are provided with opportunities to supply into Victorian government projects. The Policy must be applied by all Victorian government departments and agencies for any type of project with a value of $1 million or more in regional Victoria, or $3 million or more in metropolitan Melbourne or for state-wide activities.

Value for money

The Victorian Government Purchasing Board describes value for money as a ‘balanced judgment of a range of financial and non-financial factors, taking into account the mix of quality cost and resources; fitness for purpose; total cost of ownership and risk.’