Commissioner's Message

In reflecting on the work of the Office of the Local Jobs First Commissioner (OLJFC), through our extensive strategic project engagement with government agencies and contractors we have seen evidence of excellent outcomes delivered across a broad range of Local Jobs First (LJF) Strategic Projects. This has been achieved in the delivery of both local content and the increased participation of local apprentices, trainees and cadets under the Major Projects Skills Guarantee (MPSG). The external environment in 2024 was a mix of reported relative stability in some areas of the supply chain, with other areas remaining or becoming increasingly challenging.

I commend all LJF Strategic Projects which achieved successful outcomes in 2024. We have mentioned one fine example below, the construction of the Paula Fox Melanoma and Cancer Centre on St Kilda Road in Melbourne. This project is particularly notable for the high number of local small businesses engaged by the agency and head contractor in the construction of the facility.

For those agencies delivering LJF Strategic Projects which may be experiencing challenges in implementation, including unexpected changes or impacts in the external environment, the OLJFC is here to assist you with education to support the delivery of successful LJF outcomes, and ensure compliance.

If you have any queries in relation to this message, or on other matters relating to the Office, please contact us.

Agencies to provide full and fair opportunities for local industry and SMEs

As an example of an LJF area requiring continued focus, as Local Jobs First Commissioner, one of the critical elements of my role is advocating for the LJF regime to provide local industry with a full and fair opportunity to compete for Victorian government procurement work, particularly small and medium-sized enterprises (SMEs).

For agencies delivering LJF projects, this requires proactive leadership working together with head contractors and right through the supply chain to ensure that there is equity of opportunity for local suppliers at all stages of the project life cycle.

This may include being active in areas such as the following:

• Working with design teams and head contractors to ensure that design specifications do not unintentionally prevent local goods and services from being selected for use on the project, e.g. specifying particular products only manufactured overseas where there are equivalent products available locally.

Case Study

Paula Fox Melanoma and Cancer Centre

The Paula Fox Melanoma and Cancer Centre, valued at $152.4 million, is an LJF Strategic Project delivered by The Alfred, working with its head contractor Kane Construction between mid-2022 and April 2024.  This project involved building a new facility to provide dedicated care to patients with melanoma and other cancers, and some designated research functions. The building’s design is striking, the carefully selected translucent frit pattern along the façade represents the layers of the healthy skin dermis. The Centre was officially opened by Prime Minister Anthony Albanese and Victorian Premier Jacinta Allan on 19 April 2024.

LJF Outcomes

The Main Works contractor achieved the following LJF outcomes under the Local Industry Development Plan (LIDP):

• Local Content: 90.07% meeting the Ministerial requirement of 90%
• MPSG: 11.41% exceeding the MPSG policy requirement of 10%

SME Engagement

A significant highlight of the project was the effort and focus from the head contractor to maximise the engagement of SMEs in delivering the local content and MPSG requirements. Out of a total 662 suppliers, 446 were SMEs, accounting for 67.37% of the supply chain. During the sample and technical data submissions phase, trades engaged in the supply chain were actively encouraged to seek and acquire local content.

The head contractor understood that to facilitate successful outcomes, a high level of support was required. One of the initiatives implemented by the head contractor was to use a monitoring system to track SME progress monthly. This enabled the head contractor to provide immediate feedback and assistance to address any issues in advance, and significantly enhanced the value contributed by SMEs in delivering the project.