The Local Jobs First Supplier Guidelines provide detailed information what suppliers and grant recipients need to do when bidding and supplying into government projects, including for panel supply contracts.
Local Industry Development Plans
A Local Industry Development Plan (LIDP) is a key document in the delivery of the Local Jobs First. It requires bidders to detail how they will engage with local industry, and also detail clear commitments to local content and jobs to be delivered as part of a project. For Local Jobs First Strategic Projects, LIDPs must meet the mandated minimum local content requirements set by government.
LIDPs are used to inform the tender evaluation process, including in scoring bids for their local content commitments, taking into account the likelihood of delivery. Industry development has a 10 per cent weighting in the evaluation criteria – although some agencies may increase this for certain projects, as well as a 10 per cent weighting for jobs outcomes.
The LIDP template is issued by DJPR and may be supplemented by agencies. It is available as an online form via the ICN's Victorian Local Jobs First Management Centre (VMC).
To ensure compliance, a completed LIDP must be acknowledged by the ICN prior to submitting with your tender documents.
ICN Risk Evaluation Report
The ICN risk evaluation report provides an assessment to agencies of the relative merits of each of the acknowledged LIDPs received for a tender. The assessment is for the government agency's use only in the final tender evaluation and selection of the successful bidder.
The risk evaluation report does not rate or rank one LIDP over another, it only gives the relative merits and/or any potential risks in the local content and employment commitments not being achieved, based on the information given by the bidder.
The risk evaluation report will assign either a low, medium or high rating to an LIDP.
A low risk rating means there is a low risk of the bidder not meeting its local content and employment commitments. The bidder will have given in depth and accurate information in all sections of the LIDP. The bidder will have conducted thorough research into local industry and developed local content figures that accurately reflect current Victorian, Australian and New Zealand capability.
A medium risk rating means there is a medium risk of the bidder not meeting its local content and employment commitments. The bidder will have given a reasonable (satisfactory) amount of information, however, some inconsistencies will be present and a moderate amount of clarifications may be requested by the agency to resolve these issues.
The bidder will receive a high risk rating when they have given limited or inaccurate information in their LIDP, or if they have made a local content commitment that the ICN believe is going to be difficult to achieve. It is therefore recommended that the procuring agency seek clarification on all flagged issues, so an achievable local content commitment can be decided on.
In assessing a Local Industry Development Plan, an ICN policy analyst will look for/at:
- the procurement scope of supply (outlined in Project Description), as this will inform the overall local content and employment commitment and the list of input items provided, along with the corresponding local and imported content percentages
- the overall local content and employment commitments, clarifying employment numbers, checking for accuracy, assessing overall commitments against the scope of supply, project type and size and whether the contract will give opportunities for apprentices, trainees and/or cadets
- the detail of the implementation plan
- the local content commitments table, assessing the percentage of local value-added activity, detailed breakdown, by product and service, and whether the full bill of materials on the project has been provided (100% contract content)
- monitoring and reporting - have you put in place procedures and policies for assessing, monitoring and reporting on Local Jobs First commitments and what mechanisms are in place for addressing concerns, risks or failure to meet the commitments in the LIDP.
The LIDP assessment process is also outlined in detail in the Local Jobs First Supplier Guidelines.