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.

Adjusted Contract Price

A calculation that informs the MPSG Deemed Hours Formula. Adjusted Contract Price is calculated by taking the sum of the specific contract, minus 10 per cent GST, the profit margin the company expects to make, and the specialist equipment involved.


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 duration of three to four years and are competency based. Only work done by an apprentice registered with the Victorian Registration and Qualification Authority (VRQA) may be counted as contributing towards outcomes committed in a Local Industry Development Plan.

Australia and New Zealand Government Procurement Agreement (ANZGPA)

The Local Jobs First Policy recognises the Australia New Zealand Government Procurement Agreement (ANZGPA) entered into by Australian State and Federal Governments and New Zealand in 1991. The objective of ANZGPA is to maximise opportunities for competitive ANZ suppliers to supply into government procurement. It aims to reduce the costs of doing business for both government and industry. It applies to all Australian and New Zealand local industry participation policies.


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.


Cadetships combine formal tertiary training with practical work experience. There are many types of cadetships offered across different industries. Cadets are people enrolled in Australian tertiary education and who receive learning opportunities as part of their engagement on a Local Jobs First project (e.g. cadets in architecture, quantity surveying, and engineering). Cadetships can vary in length but are generally 18 months to 2 years. A cadetship does not fall under a National Training Contract.

Contestable Goods and Services

Goods and services in a procurement process are contestable 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

The contract manager refers to the person within the relevant Agency responsible for managing the Local Jobs First process for a contract.

Deemed hours formula

Refers to the method prescribed by the MPSG for determining a project’s total estimated labour hours, based on contract value. It is the basis from which the minimum MPSG requirement is determined for each applicable project.

Deemed labour ratio

The percentage of the total contract sum that will spent on labour. Separate labour ratios and hourly rates have been developed for building construction projects, civil and infrastructure projects, and for mixed building and infrastructure construction projects based on industry data.

Department of Jobs, Precincts and Regions

The Victorian Government agency responsible for administering the Local Jobs First Act 2003 and Local Jobs First Policy.


Refers to the number of actual new or retained (i.e. existing) annualised employee equivalent opportunities (jobs) to be created in Australia and New Zealand as a result of the contract.

Note: 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 Annual Employee Equivalent (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 Annual Employee Equivalent (AEE)) that has been working for a supplier or subcontractor before signing a project contract, working in tasks/works related to the project.

Limited Contestability

A project or aspect of a Local Jobs First project that has been deemed to be of nil or limited contestability. This means that the Industry Capability Network Victoria (ICN) has judged that goods produced, services supplied and construction activities to be used in this contract of nil or limited contestability meaning the local content is equal to or greater than 97 percent.


The term local means all suppliers producing Victorian, Australian or New Zealand goods or services or when they have added value to imported items, such providing a local employment outcome to an imported product.

Local Content

The term local content covers all suppliers producing Australian or New Zealand (ANZ) goods or services or when they have added value to imported items. Local content means goods that are produced by local industry, or services that are supplied by local industry or construction activities carried out by local industry. Local assembly of imported materials, transport of goods, and local labour are all examples of local content or local added value.

Local Industry

Local industry means industry and other businesses based in Australia or New Zealand.

Local Industry Development Plan (LIDP)

A Local Industry Development Plan is 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 LJF 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 Commissioner

An independent statutory officer with advocacy, engagement and compliance powers in relation to Local Jobs First. Further details can be found at

Local Jobs First Policy

The Local Jobs First Policy is comprised of the Victorian Industry Participation Policy and the Major Projects Skills Guarantee.

Local Value Added Content

Refers to products or services that are added locally onto an imported product.

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 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.

Practical Completion

The end of the project aside from minor administrative tasks.


Small-to-Medium Enterprises

Specialist Equipment

Refers to significant items or systems of equipment of significant cost that will be purchased by the supplier to meet the scope of works on a specific Local Jobs First project.

Standard employee

All employees not classified as apprentices, cadets or trainees.

Total Contract Sum

The sum of the contract to a specific supplier. May form just one part of the total project value.


Traineeships are undertaken under a National 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 Advance Diploma. Traineeships can be in areas including business services, information technology or community services. Traineeships typically have a duration of one to two years and are competency based. Only work contributed by a trainee registered with the Victorian Registration and Qualification Authority (VRQA) may be counted against the minimum 10 per cent MPSG requirement.

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

Rural and Regional Victoria is defined as the 48 local government areas, including six alpine resort areas, set out in Schedule 2 of the Regional Development Victoria Act 2002. 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.

Value for money

Value for money is 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.

Work Package

Work package is used to define and group different parts of a project in a way that helps organise and define the overall project.