DeedAgmt - Web viewStandard VIPPPage 5. ... Please see below for contact details of ICN and...

Victorian Industry Participation Policy (VIPP)

Model Clauses for

Request for Tender and Contract documents

Level 25, 121 Exhibit ion Street, Melbourne Vic 3000 Tel +61 3 8684 0444 Fax +61 3 8684 0449

Level 33, 80 Coll ins Street, Melbourne Vic 3000 Tel +61 3 9947 1444 Fax +61 3 9947 1499

DX 300077 Melbourne www.vgso.vic.gov.au

Ref:

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http://www.vgso.vic.gov.au/

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Table of Contents

Introduction........................................................................................................................................ 1

Local Jobs First - Victorian Industry Participation Policy (VIPP)..................................1

Procurement activities and VIPP processes....................................................................1

Using this document............................................................................................................2

Standard VIPP.................................................................................................................................... 3

RFT Model Clauses.............................................................................................................3

Contract Model Clauses – Standard VIPP........................................................................6

Strategic Projects........................................................................................................................... 14

RFT Model Clauses...........................................................................................................14

Contract Model Clauses....................................................................................................18

Applying VIPP where there are limited or no contestable items.........................................26



Panel Contracts............................................................................................................................... 31


Where Statement of Intent applies..................................................................................33


Grants................................................................................................................................................ 39

Model clauses for RFT or other application process....................................................39

Where a VIPP Plan is required........................................................................................40

Where a VIPP Plan is not required..................................................................................40

Contract model clauses.....................................................................................................42

Design Contracts............................................................................................................................. 45

Model clauses for RFT or other application process....................................................45

Contract model clauses.....................................................................................................48

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Introduction Page 1

IntroductionLocal Jobs First - Victorian Industry Participation Policy (VIPP)

The Local Jobs First - Victorian Industry Participation Policy (VIPP) applies to Government procurement activities when the following criteria have been met:

1. the procurement activity is wholly or partially funded by the State government; and

2. the procurement activity meets or exceeds either:

$1 million in regional Victoria; or

$3 million in metropolitan Melbourne or for state-wide activities.

3. VIPP also has a Strategic Project Framework that applies to procurement activities valued at $50 million or more, excluding maintenance and operational costs.

The type of process to be undertaken to apply the VIPP depends on the type of procurement activity and whether the procurement activity contains contestable goods and services.

Contestable items can be goods or services employed at any stage of a procurement activity, including maintenance. Goods and services are considered to be a contestable item within a procurement activity when there are competitive international and Australian/New Zealand suppliers.

Procurement activities and VIPP processes

For the purposes of VIPP, there are six types of ‘procurement activities’:

1. procurement of goods and services, regardless of the method of procurement (tenders, State Purchase Contracts and major events);

2. construction projects (Public Private Partnerships and Alliance Contracts );

3. delivery of major events and other government projects;

4. using a panel of suppliers to deliver goods or services;

5. grant recipients (funding to private, non-government and local government organisations for investment support, business development and community infrastructure); and

6. design contracts (planning and designing capital works or other large infrastructure projects).

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Introduction Page 2

An Agency1 must register the project on the VIPP Management Centre website prior to developing tender documentation for any of these procurement activities which meet the VIPP criteria. The Industry Capability Network will provide advice to the Agency regarding whether the procurement activity contains contestable items. The Agency must consider this advice when determining if Standard VIPP or Strategic Project status should apply.

Even where procurement includes limited or no contestable items, the VIPP principles should be highlighted to suppliers and applied to projects to the extent possible. RFT content has been drafted for this purpose and is included in this document.

Local Content Evaluation Criteria - Weighting

The Government has introduced a minimum 10 per cent formal weighting for local content2, as outlined in VIPP or LIDP plans, in the evaluation of VIPP applicable projects, effective from 1 September 2016.

Agencies are required to disclose Local Content as a weighted tender evaluation criterion and the weighted percentage in the RFT documents. The weighting applies to all types of VIPP applicable projects where a VIPP plan or Local Industry Development Plan (LIDP) is required.

Agencies will be required to report on the application of the weighted Local Content criterion, including the percentage applied, on VIPP applicable projects as part of the Agency’s annual reporting requirements as per the Department of Treasury and Finance - Financial Reporting Directive (FRD25C).

The manner in which the 10 per cent Local Content weighting can be applied and practical examples are set out in the Victorian Industry Participation Policy Agency Guidelines available at www.economicdevelopment.vic.gov.au/victorian-industry-participation-policy.

Using this document

After an Agency has identified whether Standard VIPP or Strategic Project VIPP status applies to the particular procurement activity, the Agency should then refer to the relevant sections of this document to identify the model clauses for use in:

their approach to market documentation (for example, a request for tender); and

1 The term "Agency" is used throughout this document to cover all Victorian government public sector bodies which include but are not limited to: Departments, statutory authorities, administrative offices, state owned companies, police and emergency services, regulatory agencies, hospitals, Health Purchasing Victoria and water and land management authorities.

2 In this document the term 'local content' or 'Local Content' has the same meaning as in the VIPP - Agency Guidelines – "Local Content – Under VIPP, 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. 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…" Refer to the Victorian Industry Participation Policy Agency Guidelines available at www.economicdevelopment.vic.gov.au/victorian-industry-participation-policy for a full definition.

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http://www.economicdevelopment.vic.gov.au/victorian-industry-participation-policy



Introduction Page 3

the draft contract to be included in the approach to market documentation.

This document has been prepared to provide model clauses for VIPP tender documentation and contracts for VIPP applicable activities.

The model clauses are a guide and should be amended as appropriate to align with the Agency’s tender and contracting documents where required.

Note: numbering of clauses will need to be amended and drafting notes removed in the Agency tender and contract documentation as appropriate.

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Standard VIPP Page 4

Standard VIPPRFT Model Clauses

1. Local Jobs First - Victorian Industry Participation Policy

1.1 Overview

1.1.1 The Local Jobs First - Victorian Industry Participation Policy (VIPP) seeks to maximise opportunities for Australian, New Zealand and Victorian suppliers (Local Suppliers) to compete for government business on the basis of best value for money over the life of the goods or services. The VIPP is implemented by Victorian Government departments and agencies to help drive local industry development.

1.1.2 The Standard VIPP applies to Government procurement activities, construction activities, major projects, major events, Public Private Partnerships and investment support, business development and community infrastructure grants above the threshold values of $3 million or more in Metropolitan Melbourne and $1 million or more in Regional Victoria.

1.2 Contestable items

1.2.1 Contestable items are goods or services within a procurement activity for which there are competitive international suppliers and Local Suppliers. The VIPP requires that government agencies consider local content commitments, particularly in respect of 'contestable items', as a key criterion in tender evaluation and other relevant procurement processes.

1.2.2 The contestable items within the scope of this Request for Tender are:

(a) [XXX]

(b) [XXX]

Drafting notes

The ‘Contestable Items’ to be listed should reflect the advice provided by the Industry Capability Network, which will be given to the Agency after registering the project on the VIPP Management Centre website (www.icnvic.org.au/vipp).

1.3 VIPP Plan

1.3.1 Option 1: All bidders must prepare a VIPP Plan.

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1.3.1 Option 2: All shortlisted bidders, when advised by the Agency that they have been shortlisted, must prepare a VIPP Plan. While shortlisted bidders should not submit a VIPP Plan unless and until requested to do so by the Agency, they are encouraged to engage with Industry Capability Network (ICN) Victoria (ICN) early in the tender preparation process to avoid undue delays in preparing a VIPP Plan should they be requested to do so. Contact details for ICN are provided below.

1.3.2 The VIPP Plan must be submitted electronically via the VIPP Management Centre website (www.icnvic.org.au/vipp). Bidders will be asked for the following information:

Key VIPP Criteria Description

Local Value-added Activity

Specify the level of Victorian, Australian and New Zealand value-added activity, expressed as a percentage of the overall bid price for each item

Employment created or retained

Provide details of employment opportunities that will be created or retained in Australia and New Zealand as a result of the contract

Apprentices/trainees created and existing positions to be utilised on the contract

The number of apprentice/trainee positions that will be created in Australia and New Zealand and existing apprentices/trainees utilised as a result of the contract.

Implementation & Monitoring

Provide details of the methods and processes to be adopted in identifying local suppliers, assessing and comparing suppliers and products, and monitoring and reporting the local content.

1.3.3 To demonstrate that the VIPP Plan provided is completed correctly and includes all required information, bidders must obtain certification for their VIPP Plan from ICN. Please see below for contact details of ICN and details of the support services available.

1.4 Use of the VIPP Plan

1.4.1 Any post-tender changes in a bidder’s VIPP Plan commitments will require further ICN assessment and certification.

1.4.2 The contents of a successful bidder’s final VIPP Plan will be included in the agreement to be entered into between that bidder and the Agency. Further, the successful bidder’s VIPP information will be recorded centrally for ICN verification of the VIPP outcomes reported.

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http://www.icnvic.org.au/vipp


1.5 Local Content Evaluation Criteria - Weighting

The Government has introduced a minimum 10 per cent formal weighting for local content, as outlined in VIPP or LIDP plans, in the evaluation of VIPP applicable projects, effective from 1 September 2016.



Model Clause

Agencies are required to disclose Local Content as a weighted evaluation criteria and the percentage of weighting that will apply. The following model clause is to be included in the RFT Evaluation Criterion section of the document.

1.5.1 The content of a bidder's VIPP Plan will be allocated a minimum [10] per cent weighting as part of the tender evaluation process.

Drafting notes

1. If a figure greater than 10 per cent is be allocated for the VIPP component of the Tender evaluation process, this figure should be inserted into the clause.

2. Agencies preparing RFT documents for VGPB goods and services contracts should refer to the revised VGPB supply policies effective 1 July 2016 available at: http://www.procurement.vic.gov.au/About-the-VGPB/News. For a list of the Agencies that the VGPB policies apply to refer to: http://www.procurement.vic.gov.au/About-the-VGPB/Scope-of-Policies.

3. Agencies preparing RTF documents for construction contracts should refer to http://www.dtf.vic.gov.au/Infrastructure-Delivery/Public-construction-policy-and-resources/Practitioners-Toolkit for other requirements or selection criteria that may apply.

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http://www.dtf.vic.gov.au/Infrastructure-Delivery/Public-construction-policy-and-resources/Practitioners-Toolkit


http://www.procurement.vic.gov.au/About-the-VGPB/Scope-of-Policies

http://www.procurement.vic.gov.au/About-the-VGPB/News


4. The manner in which the 10 per cent local content weighting can be applied and practical examples are set out in the Victorian Industry Participation Policy Agency Guidelines available at www.economicdevelopment.vic.gov.au/victorian-industry-participation-policy.

1.6 Further information and assistance

1.6.1 The Department of Economic Development, Jobs, Transport and Resources (DEDJTR) has prepared guidelines for Suppliers on the application of VIPP to procurement in 'Implementing the VIPP - Supplier Guidelines' (Guidelines). A copy of the Guidelines and further information about VIPP as well as useful templates are available on the DEDJTR website at www.economicdevelopment.vic.gov.au/victorian-industry-participation-policy.

1.6.2 ICN provides free services to assist bidders in identifying and developing the above information. ICN's services are available during the tendering process.

1.6.3 Bidders are advised that ICN will be available to assist them in implementing the VIPP.

1.6.4 For further information or assistance, bidders can contact:

ICN on (03) 9864 6700 or visit www.icnvic.org.au/vipp

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Contract Model Clauses – Standard VIPP

Agreed terms

1. Definitions and Interpretation

1.1 Definitions3

Completion Date means the date set out at Item X of Schedule X [insert numerical reference to the appropriate item and Schedule of the Contract Precedent].

Contestable Items means goods or services the subject of this Agreement for which there are competitive international suppliers and Australia and New Zealand suppliers. The Contestable Items are set out in Schedule X [insert numerical reference to the VIPP Schedule].

Contract Manager means the person appointed by the Agency as its representative under cl X [insert numerical reference to the relevant clause of the Contract Precedent].

Industry Capability Network (ICN) means Industry Capability Network (ICN) Victoria (ICN) of Level 11, 10 Queens Road Melbourne Vic, 3004 (ACN 007 058 120) (ABN 20 007 058 120).

Notice means a notice given in accordance with cl X [insert numerical reference to the relevant clause of the Contract Precedent].

Responsible Minister means the Minister with responsibility for administering the Victorian Industry Participation Policy Act 2003.

VIPP means the Victorian Industry Participation Policy made pursuant to s 4 of the Victorian Industry Participation Policy Act 2003.

VIPP Monitoring Table means the table included at Schedule X [insert numerical reference to the VIPP Schedule].

VIPP Plan means the VIPP Plan set out in Schedule X [insert numerical reference to the VIPP Schedule].

Drafting notes

Internal cross references in the model clauses should be reviewed to ensure the clauses

3 These terms should be inserted in to the Definitions clause of the contract precedent where the precedent does not already include relevant terms. Where the contract precedent includes any of these or related defined terms, care should be taken to ensure that there is no conflict between the two definitions. Where there is no conflict between the two definitions, it is recommended that the precedent definition is used and the VIPP clauses amended as appropriate.

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align with the contract precedent.


2.1 VIPP Plan

(a) The Supplier must, in performing its obligations under this Agreement,comply with the VIPP Plan.

(b) The Supplier acknowledges and agrees that its obligations as set out in the VIPP Plan apply during the Term, any extensions to the Term and until all of its Reporting obligations as set out in cl 2.3 are fulfilled.

2.2 Revised VIPP Plan

(a) If at any time a variation to this Agreement is proposed which involves or effects a change in the nature of any Contestable Items, the Supplier must prepare a revised VIPP Plan which must be certified by ICN (Revised VIPP Plan).

(b) When requested by the Contract Manager, the Supplier must provide the Revised VIPP Plan within the time stated in the Contract Manager's request.

(c) The Revised VIPP Plan must be agreed by the parties before any variation to the Agreement can take effect unless the parties agree that a Revised VIPP Plan is unnecessary.

(d) Once the Revised VIPP Plan is agreed by the parties, the Revised VIPP Plan replaces the VIPP Plan in Schedule X [insert numerical reference to the VIPP Schedule] and forms part of this Agreement.

2.3 Reporting

(a) The Supplier must prepare and maintain records in the form of the VIPP Monitoring Table demonstrating its compliance with the VIPP Plan.

(b) The Supplier must report when requested by the Agency demonstrating its progress towards implementing the VIPP Plan. The Supplier may comply with its reporting obligation by submitting a report in the form of the VIPP Monitoring Table.

(c) Upon Practical Completion or within one month of the Completion Date (whichever occurs first), the Supplier must provide to the Contract Manager:

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(i) the VIPP Monitoring Table detailing the Supplier's aggregate compliance with the VIPP Plan. The VIPP Monitoring Table must identify and explain any departures from the VIPP Plan and the aggregated outcomes as reported in the VIPP Monitoring Table; and

(ii) a Statutory Declaration in the form set out in Schedule X [insert numerical reference to the VIPP Schedule] to confirm that the information contained in the VIPP Monitoring Table is true and accurate. The Statutory Declaration must be made by a director of the Supplier or the Supplier's Chief Executive Officer or Chief Financial Officer.

(d) For the purposes of this clause 2.3, Practical Completion is that stage of the Agreement where all substantive work required by the Agreement has been completed (excluding administrative or regulatory obligations remaining to be fulfilled).

(e) At the request of the Contract Manager, the Supplier must provide further information or explanation of any departures from the VIPP Plan as reported in the VIPP Monitoring Table.

(f) The reporting obligations are in addition to and do not derogate from any other reporting obligations as set out in the Agreement.

Drafting notes

Delete cl 2.3 (b) if the Supplier is not required to report annually on its VIPP compliance. Annual reporting may be required to assist agencies to manage their supplier’s compliance with VIPP over the life of the contract. Reporting is only mandatory for Suppliers upon practical completion, as per cl 2.3 (c), which must be retained.

Omit cl 2.3 (d) in a construction contract where Practical Completion is a defined term.

2.4 Verification of Supplier's compliance with VIPP Plan

(a) The Supplier must:

(i) permit the Agency or its duly authorised representative, from time to time during ordinary business hours and upon Notice, to inspect, verify and make copies at the Agency’s expense of all records maintained by the Supplier for the purposes of this Agreement;

(ii) permit the Agency, or its duly authorised representative from time to time to undertake a review of the Supplier's performance in accordance with the VIPP Plan; and

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(iii) ensure that its employees, agents and subcontractors give all reasonable assistance to any person authorised by the Agency to undertake such audit or inspection.

(b) The Supplier acknowledges and agrees that the Agency, the Agency's duly authorised representative and ICN are authorised to obtain information from any relevant persons, firms or corporations, including third parties, regarding the Supplier's compliance with the VIPP Plan.

(c) The obligations set out in this clause 2.4 are in addition to and do not derogate from any other obligation under this Agreement.

2.5 Use of VIPP information

The Supplier acknowledges and agrees that:

(a) ICN will assess the Supplier's performance against the Supplier's VIPP Plan;

(b) the statistical information contained in the Supplier's VIPP Plan and the measures of the Supplier's compliance with the VIPP Plan as reported in the VIPP Monitoring Table will be:

(i) included in the Agency's report of operations under Part 7 of the Financial Management Act 1994 in respect of the Agency's compliance with the VIPP in the financial year to which the report of operations relates; and

(ii) provided to the Responsible Minister for inclusion in the Responsible Minister's report to the Parliament for each financial year on the implementation of the VIPP during that year; and

(iii) may be disclosed in the circumstances set out in cl x or as otherwise required by Law.

Drafting notes

Insert a reference in cl 2.5(b)(iii) to the clause in the contract precedent which addresses disclosure of the Supplier's confidential information. This might be in an audit and/or access to records clause.

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Schedule 1 Local Jobs First - Victorian Industry Participation Policy Plan

1. VIPP Plan

The VIPP Plan is attached at Attachment 1 to this Schedule.

2. VIPP Monitoring Table

The Supplier must complete the VIPP Monitoring Table at Attachment 2 to this Schedule for the purposes of its VIPP Compliance Reporting obligations as set out in cl [2.3(c)(i)]. The Supplier must provide the VIPP Monitoring Table to the Contract Manager upon Practical Completion or within one month of the Completion Date (whichever occurs first).

3. Statutory Declaration

The form of Statutory Declaration required for the purposes of cl [2.3(c)(ii)] is attached at Attachment 3 to this Schedule.

Drafting notes

Ensure that cross-referencing in the clauses above is correct in the Contract.

Print a copy of the Supplier's VIPP Plan and attach it behind Attachment 1 to this Schedule.

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Standard Process Page 13

Attachment 1 - VIPP Plan

[VIPP Plan to be inserted as Attachment 1 to the Contract]

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Attachment 2 - VIPP Monitoring Table

ANZ value-added activity

VIPP Commitments Progress Secured VIPP Outcomes

Item DescriptionBrand /manufacturer

Supplier% of Local Content

% of Total Local Content

% of Local Content

% of Local Content (A)

% of Contact Content (B)

% of Total Local Content(C) = (A x B)

ICN Assistance (Y/N)

Comments

E.g. Item 1

TOTAL ANZ value-added activityTotal Committed:

Total Secured:

100 %

Employment

New Jobs Existing JobsTotal Jobs Committed

Total Jobs Secured

Difference / CommentsCommitted Secured Committed Secured

Apprentices/ trainees

New Apprentices/ trainees Existing Apprentices/ trainees Total Apprentices/ Total Apprentices/ Difference

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trainees Committed

trainees SecuredCommitted Secured Committed Secured

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Strategic Projects - VIPP Page 16

Attachment 3 - Statutory Declaration

State of Victoria

Statutory Declaration

I,

[full name]

of [address]

, do solemnly and sincerely declare that:-

[occupation]

________________________________________ achieved the Victorian Industry

[contracted company]

Participation Policy objectives and outcomes relating to local content; employment;

skills and technology transfer; and apprentices/ trainees reflected in the VIPP

Monitoring Table for ______________________________________ as submitted to

[name and tender number of procurement activity]

_____________________________________________ on ______/____/______

[agency] [date]

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I acknowledge that this declaration is true and correct, and I make it with the understanding and belief that a person who makes a false declaration is liable to the penalties of perjury.

Declared at

this day of 20 ……………………………………...

Signature of person making this declaration

[to be signed in front of an authorised witness]

Before me,

………………………………………………

Signature of Authorised Witness

The authorised witness must print or stamp his or her name, address and title under section 107A of the Evidence (Miscellaneous Provisions) Act 1958 (as of 1 January 2010), (previously Evidence Act 1958), (eg. Justice of the Peace, Pharmacist, Police Officer, Court Registrar, Bank Manager, Medical Practitioner, Dentist)

Strategic ProjectsRFT Model Clauses

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1.1 Overview

1.1.1 The Victorian Industry Participation Policy (VIPP) seeks to maximise opportunities for Australian, New Zealand and Victorian suppliers (Local Suppliers) to compete for government business on the basis of best value for money over the life of the goods or services. The VIPP is implemented by Victorian Government Agencies to help drive local industry development.

1.1.2 Strategic Projects are projects with a total project value of $50 million or more, excluding maintenance and operational costs.

1.1.3 Strategic Projects are subject to mandated minimum local content requirements and other conditions to help drive additional economic activity and jobs. This Request for Tender is for a Strategic Project.


1.2.1 Contestable items are goods or services within a procurement activity for which there are competitive international suppliers and Local Suppliers. The VIPP requires that government agencies consider local content in respect of 'contestable items' as a key criterion in tender evaluation and other relevant procurement processes.


(a) [XXX]

(b) [XXX]

Drafting notes

Agency to enter contestable items here as per ICN advice.

1.3 Local content requirements

1.3.1 The local content requirements for this tender are:

(i) [XXX]

Drafting notes

Set out here the specific VIPP requirements for this tender, which may include achieving a minimum local content percentage, weighting of local content criterion in tender evaluation,

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requirements to demonstrate other industry outcomes such as skills development, etc.

1.4 Local Industry Development Plan

1.4.1 The tender assessment will consider whether and how bidders comply with the VIPP. This is done through assessment of bidders' Local Industry Development Plans (LIDP).

1.4.2 All shortlisted bidders, when advised by the Agency that they have been shortlisted, must prepare a Local Industry Development Plan (LIDP).

1.4.3 In developing the LIDP, bidders must consult in good faith with Industry Capability Network (ICN) Victoria (ICN).

1.4.4 The LIDP template at Schedule [x] must be completed and uploaded to the VIPP Management Centre at www.icnvic.org.au/vipp. The LIDP template must include the following information:

Key VIPP Criteria Description

Local Value-added ActivitySpecify the level of Australian and New Zealand (ANZ) value-added local content, expressed as a percentage of the overall bid price

Employment created or retained

Provide details of employment levels for new and retained full-time equivalent employment opportunities (jobs) to be created in ANZ as a result of the contract

Apprentices/trainees created and existing positions to be utilised on the contract

The expected number of new and retained apprentice/ trainee positions created in ANZ as a result of the contract

Project-specific ConditionsAny additional VIPP conditions required for the specific strategic project, such as procurement plans for key strategic items

Detailed Implementation Plan

Provide comprehensive information on the methods and processes to be adopted in achieving, monitoring and reporting the local content, employment and skills/technology transfer outcomes estimated above.

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1.4.5 To demonstrate that the LIDP provided is completed correctly and includes all required information, bidders must obtain certification for their LIDP from ICN. Contact details for ICN are provided below.

1.5 Use of the Local Industry Development Plan

1.5.1. Any post-tender changes in a bidder’s LIDP commitments will require further ICN assessment and certification.

1.5.2 The contents of a successful bidder’s final LIDP will be included in the agreement to be entered into between that bidders and the Agency. Further, the bidder’s LIDP information will be recorded centrally for ICN certification of the LIDP outcomes reported.





Model Clause


1.5.1 The content of a bidder's LIDP Plan will be allocated a minimum [10] per cent weighting as part of the tender evaluation process.

Drafting notes


2. Agencies preparing RFT documents for VGPB goods and services contracts should refer to the revised VGPB supply policies effective 1 July 2016 available at:

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http://www.procurement.vic.gov.au/About-the-VGPB/News. For a list of the Agencies that the VGPB policies apply to refer to: http://www.procurement.vic.gov.au/About-the-VGPB/Scope-of-Policies.




1.7.1 The Department of Economic Development, Jobs, Transport and Resources has prepared guidelines for Suppliers on the application of VIPP to procurement in 'Implementing the VIPP - Suppliers Guidelines' (Guideline), available at www.economicdevelopment.vic.gov.au/victorian-industry-participation-policy.

1.7.2 ICN provides free services to assist bidders in identifying and developing the above information. Bidders are advised that ICN will be available to assist them in implementing the VIPP. For further information or assistance, bidders can contact ICN on (03) 9864 6700 or visit www.icnvic.org.au/vipp.

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Contract Model Clauses

Agreed terms


1.1 Definitions4

Completion Date means the date set out at Item X of Schedule X [insert numerical reference to the item and schedule of the Contract Precedent].


Contract Manager means the person appointed by the Agency as its representative under cl x [insert numerical reference to the relevant clause of the Contract Precedent].5

Industry Capability Network (ICN) means Industry Capability Network (ICN) Victoria (ICN) of Level 11, 10 Queens Road Melbourne Vic, 3004 (ACN) (ABN). (ACN 007 058 120) (ABN 20 007 058 120).

LIDP means the Local Industry Development Plan set out in Schedule X [insert numerical reference to the VIPP Schedule].

LIDP Monitoring Table means the table included at Schedule X [insert numerical reference to the VIPP Schedule]. [The standard VIPP Monitoring Table is attached. It should be customised as required for the Strategic Project].

Notice means a notice given in accordance with cl x [insert numerical reference to the relevant clause of the Contract Precedent].



4 These terms should be inserted in to the Definitions clause of the Contract Precedent. Where the contract precedent includes any of these defined terms, care should be taken to ensure that there is no conflict between the two definitions.

5 Use this definition only if the contract precedent does not already include a term for the Agency's representative. Where the contract precedent includes such term, it should be used instead of 'Contract Manager' throughout the VIPP clauses.

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2.1 Local Industry Development Plan (LIDP)

2.1.1 The Supplier must, in performing its obligations under this Agreement, comply with the LIDP.

2.1.2 The Supplier acknowledges and agrees that its obligations as set out in the LIDP apply during the Term, any extensions to the Term and until all of its Reporting obligations as set out in cl 2.3 are fulfilled.

2.2 Revised LIDP

2.2.1 If at any time a variation to this Agreement is proposed which involves or effects a change in the nature of any Contestable Items, the Supplier must prepare a revised LIDP in collaboration with and certified by ICN (Revised LIDP).

2.2.2 When requested by the Contract Manager, the Supplier must provide the Revised LIDP to the Agency.

2.2.3 The Revised LIDP must be agreed by the parties before any variation to the Agreement can take effect unless the parties agree that a Revised LIDP is unnecessary.

2.2.4 Once the Revised LIDP is agreed by the parties, the Revised LIDP replaces the LIDP in Schedule X [insert numerical reference to the VIPP Schedule] and forms part of this Agreement.

2.3 Reporting

2.3.1 The Supplier must prepare and maintain records demonstrating its compliance with the LIDP.

2.3.2 The Supplier must provide an annual report demonstrating its progress towards implementing the VIPP Commitments. The Supplier may comply with its annual reporting obligation by submitting a report in the form of the LIDP Monitoring Table.

2.3.3 Upon Practical Completion or within one month of the Completion Date (whichever occurs first), the Supplier must provide to the Contract Manager:

(i) the LIDP Monitoring Table in the form set out in Schedule X [insert numerical reference to the VIPP Schedule] detailing the Supplier's aggregate compliance with the LIDP. The LIDP Monitoring Table must identify and explain any departures from the LIDP Commitments and the aggregated outcomes as reported in the LIDP Monitoring Table; and

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(ii) a Statutory Declaration in the form set out in Schedule X [insert numerical reference to VIPP Schedule] to confirm that the information contained in the LIDP Monitoring Table is true and accurate. The Statutory Declaration must be made by a director of the Supplier or the Supplier's Chief Executive Officer or Chief Financial Officer.

2.3.4 For the purposes of this clause 2.3, Practical Completion is that stage of the Agreement where all substantive work required by the Agreement has been completed (excluding administrative or regulatory obligations remaining to be fulfilled).

2.3.5 At the request of the Contract Manager, the Supplier must provide further information or explanation of any departures from the LIDP as reported in the LIDP Monitoring Table.

2.3.6 The reporting obligations are in addition to and do not derogate from any other reporting obligations as set out in the Agreement.

Drafting notes

Delete cl 2.3.2 if the Supplier is not required to report annually on its VIPP compliance.

Omit cl 2.3.3 in a construction contract where Practical Completion is a defined term.

2.4 Verification of Supplier's compliance with LIDP Plan

2.4.1 The Supplier must:

(a) permit the Contract Manager, an accountant or auditor on behalf of the Agency, or any other person authorised by the Agency, from time to time during ordinary business hours and upon Notice, to inspect and verify all records maintained by the Supplier for the purposes of this Agreement;

(b) permit the Agency from time to time to undertake a review of the Supplier's performance in accordance with the LIDP; and

(c) ensure that its employees, agents and subcontractors give all reasonable assistance to any person authorised by the Agency to undertake such audit or inspection.

2.4.2 The Supplier acknowledges and agrees that the Agency, the Agency's duly authorised representative and ICN are authorised to obtain information from any relevant persons, firms or corporations, including third parties, regarding the Supplier's compliance with the LIDP.

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2.4.3 The obligations set out in this clause 2.4 are in addition to and do not derogate from any other obligation under this Agreement.

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2.5.1 ICN will assess the Supplier's performance against the LIDP;

2.5.2 the statistical information contained in the LIDP and the measures of the Supplier's compliance with the LIDP as reported in the VIPP Monitoring Table will be:

(a) included in the Agency's report of operations under Part 7 of the Financial Management Act 1994 in respect of the Agency's compliance with the VIPP in the financial year to which the report of operations relates;

(b) provided to the Responsible Minister for inclusion in the Responsible Minister's report to the Parliament for each financial year on the implementation of the VIPP during that year; and

(c) may be disclosed in the circumstances set out in cl x or as otherwise required by Law.

Drafting notes

Insert a reference to the clause in the contract precedent which addresses disclosure of the Supplier's confidential information. This might be in an audit and/or access to records clause.

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Strategic Projects Page 27

Schedule 1 Local Industry Development Plan

1. Local Industry Development Plan (LIDP)

The LIDP is at Attachment 1 to this Schedule

Drafting notes

Print a copy of the Supplier's LIDP and attach it behind Attachment 1 to this Schedule.

2. LIDP Monitoring Table

The Supplier must complete the LIDP Monitoring Table at Attachment 2 to this Schedule for the purposes of its VIPP Compliance Reporting obligations as set out in cl [2.3(c)(i)].

3. Statutory Declaration

The form of Statutory Declaration required for the purposes of cl [2.3.3(ii)] appears at Attachment 3 to this Schedule.

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Drafting Notes

Ensure that cross-referencing in the clauses above is correct in the Contract.

The VIPP Monitoring Table is attached to the LIDP and will be customised by ICN for each VIPP Strategic Project.


Attachment 1 - Local Industry Development Plan

Drafting notes

The Local Industry Development Plan (LIDP) is a more detailed version of a VIPP Plan, and will include any additional requirements such as:

a minimum local content percentage to be achieved in the delivery of the project;

consulting with the Industry Capability Network (ICN) Victoria on local industry capabilities;

consideration of particular elements of the project that have strategic significance to the State of Victoria, which could include goods, services or training.

LIDPs are specific to the requirements of each project.

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Attachment 2 - VIPP Monitoring Table

ANZ value-added activity

VIPP Commitments Progress Secured VIPP Outcomes

Item DescriptionBrand /manufacturer

Supplier% of Local Content

% of Total Local Content

% of Local Content

% of Local Content (A)

% of Contact Content (B)

% of Total Local Content(C) = (A x B)

ICN Assistance (Y/N)

Comments

E.g. Item 1

TOTAL ANZ value-added activityTotal Committed:

Total Secured:

100%

Employment

New Jobs Existing JobsTotal Jobs Committed

Total Jobs Secured

Difference / CommentsCommitted Secured Committed Secured

Apprentices/ trainees

New Apprentices/ trainees Existing Apprentices/ trainees Total Apprentices/ Total Apprentices/ Difference

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trainees Committed

trainees SecuredCommitted Secured Committed Secured

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Nil or Limited Contestability Page 31

Attachment 3 - Statutory Declaration

State of Victoria

Statutory Declaration

I,

[full name]

of [address]

, do solemnly and sincerely declare that:-

[occupation]

________________________________________ achieved the Victorian Industry

[contracted company]

Participation Policy objectives and outcomes relating to local content; employment;

skills and technology transfer; and apprentices/ trainees reflected in the VIPP

Monitoring Table for ______________________________________ as submitted to

[name and tender number of procurement activity]

_____________________________________________ on ______/____/______

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[agency] [date]

I acknowledge that this declaration is true and correct, and I make it with the understanding and belief that a person who makes a false declaration is liable to the penalties of perjury.

Declared at

this day of 20 ……………………………………...

Signature of person making this declaration

[to be signed in front of an authorised witness]

Before me,

………………………………………………

Signature of Authorised Witness

The authorised witness must print or stamp his or her name, address and title under section 107A of the Evidence (Miscellaneous Provisions) Act 1958 (as of 1 January 2010), (previously Evidence Act 1958), (eg. Justice of the Peace, Pharmacist, Police Officer, Court Registrar, Bank Manager, Medical Practitioner, Dentist)

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Applying VIPP where there are limited or no contestable itemsLocal Jobs First – Victorian Industry Participation Policy (VIPP) applies to a procurement activity when the following criteria have been met:

1. the procurement activity is wholly or partially funded by the State government; and

2. the procurement activity meets or exceeds either:

o $1 million in regional Victoria; or

o $3 million in metropolitan Melbourne or for State-wide activities

o VIPP also has a Strategic Project Framework that applies to procurement activities valued at $50 million or more, excluding maintenance and operational costs.

The type of process to be undertaken to apply the VIPP depends on the type of procurement activity and whether the procurement activity contains contestable goods and services. The Agency must seek advice from the ICN to help determine whether a procurement activity contains contestable goods and services.

Where an activity contains limited or no contestable items, but meets the threshold criteria, a VIPP Plan or LIDP Plan may not be required. In these circumstances, there is no contractual obligation on the successful bidder in respect of complying with VIPP.

However, the principles of VIPP still apply, and the successful bidder should:

consider engaging competitive Australian, New Zealand and Victorian suppliers, subject to value for money criteria, wherever possible; and

provide an estimate of the expected local content within the proposed procurement activity.

The bidder's estimate should be obtained and assessed as part of the tender assessment process.

RFT Model Clauses


1.1 Overview

1.1.1 The Victorian Industry Participation Policy (VIPP) seeks to maximise opportunities for Australian, New Zealand and Victorian suppliers (Local Suppliers) to compete for government business on the basis of best value for money over the life of the goods or services. The VIPP is implemented by Victorian Government departments and agencies to help drive local industry development.

1.1.2 The VIPP applies to Government procurement activities, construction activities, major projects, major events, Public Private Partnerships and investment support, business development and community infrastructure


grants above the threshold values of $3 million or more in Metropolitan Melbourne and $1 million or more in Regional Victoria.

1.1.3 VIPP also has a Strategic Project Framework that applies to procurement activities valued at $50 million or more, excluding maintenance and operational costs.

Drafting notes

Clause numbering should be amended subject to the position where the clauses will be inserted within the RFT.


1.2.1 Contestable items are goods or services within a procurement activity for which there are competitive international suppliers and local suppliers. The VIPP requires that government agencies consider local content, particularly in respect of 'contestable items' as a key criterion in tender evaluation and other relevant procurement processes.

1.2.2 Option 1: The contestable items within the scope of this Request for Tender are:

(a) [XXX]

1.2.2 Option 2: There are no contestable items within the scope of this procurement.

Drafting notes

Delete the cl 1.2.2 that does not apply and the reference to 'Option 1' or 'Option 2' as appropriate.

Option 1 applies where there are limited contestable items.

Option 2 applies where there are no contestable items as per ICN advice.

1.3 Implementing the VIPP and reporting on outcomes

1.3.1 In preparing their tender documentation, bidders must:

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consider engaging competitive Australian, New Zealand and Victorian suppliers, subject to value for money criteria, wherever possible; and

provide an estimate of the expected local content within the proposed procurement activity.

1.3.2 The bidder's estimate will be assessed as part of the tender assessment process and must be reported by the Agency and the Minister responsible for VIPP pursuant to their statutory VIPP reporting obligations.


1.4.1 The Department of Economic Development, Jobs, Transport and Resources (DEDJTR) has prepared Guidelines for Suppliers on the application of VIPP to procurement in 'Implementing the VIPP - Suppliers Guidelines' (Guidelines). A copy of the Guidelines and further information about VIPP as well as useful templates are available on the DEDJTR website at www.economicdevelopment.vic.gov.au/victorian-industry-participation-policy.

1.4.2 ICN provides free services to assist bidders. ICN's services are available during the tendering process and to assist successful bidders in implementing the VIPP.

1.4.3 For further information or assistance, bidders can contact:

ICN on (03) 9864 6700; or visit www.icnvic.org.au/vipp

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Agreed terms

Definitions and Interpretation

1. Definitions6


Contract Manager means the person appointed by the Agency as its representative under cl X [insert numerical reference to the relevant clause of the Contract Precedent].


Local content means Victoria, Australia or New Zealand; so as to be in accord with the Australia New Zealand Government Procurement Agreement entered into by Australian State and Federal Governments and New Zealand.

Australia and New Zealand (ANZ) value-added means the cost of Victorian/Australian/New Zealand goods or service less the cost of the imported components.



Drafting notes

Internal cross references in the model clauses should be reviewed to ensure the clauses align with the contract precedent.

Local content estimates need to be provided where there are either limited or no contestable items. Agency contracting parties have an obligation to report the estimate of local content

6 These terms should be inserted in to the Definitions clause of the contract precedent where the precedent does not already include relevant terms. Where the contract precedent includes any of these or related defined terms, care should be taken to ensure that there is no conflict between the two definitions. Where there is no conflict between the two definitions, it is recommended that the precedent definition is used and the VIPP clauses amended as appropriate.

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for all projects where VIPP was applied but a VIPP Plan was not required.

For projects that are international by nature, the percentage of local content is expected to be low. For projects that are local by nature, the percentage of local content is expected to be high.


2.1 Estimate of local content

2.1.1 The Supplier must, in performing its obligations under this Agreement, consider engaging competitive Australian, New Zealand and Victorian suppliers, subject to value for money criteria, wherever possible.

2.1.2 The Supplier must, in performing its obligations under this Agreement, undertake to achieve [insert numerical percentage estimate of local content] of local content, wherever possible.



2.2.1 the Supplier's estimate of local content will be:

(i) included in the Agency's report of operations under Part 7 of the Financial Management Act 1994 in respect of the Agency's compliance with the VIPP in the financial year to which the report of operations relates; and

(ii) provided to the Responsible Minister for inclusion in the Responsible Minister's report to the Parliament for each financial year on the implementation of the VIPP during that year; and

(iii) may be disclosed in the circumstances set out in cl x or as otherwise required by Law.

Drafting notes

Insert a reference in cl 2.2.1 to the clause in the contract precedent which addresses disclosure of the Supplier's confidential information. This might be in an audit and/or access to records clause.

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Panel Contracts Page 38

Panel ContractsRFT Model Clauses


1.1 Overview

1.1.1 The Victorian Industry Participation Policy (VIPP) seeks to maximise opportunities for Australian, New Zealand and Victorian suppliers (Local Suppliers) to compete for government business on the basis of best value for money over the life of the goods or services. The VIPP is implemented by Victorian Government departments and agencies to help drive local industry development.

1.1.2 The VIPP applies to Government procurement activities, construction activities, major projects, major events, Public Private Partnerships and investment support, business development and community infrastructure grants above the threshold values of $3 million or more in Metropolitan Melbourne and $1 million or more in Regional Victoria.



1.2.1 Contestable items are goods or services within a procurement activity for which there are competitive international suppliers and Local Suppliers. The VIPP requires that government agencies consider local content commitments, particularly in respect of 'contestable items', as a key criterion in tender evaluation and other relevant procurement processes.


(a) [XXX]

Drafting notes

Agency to enter contestable items here as per ICN advice.

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1.3 Statement of Intent

1.3.1 The Agreement between Panel Suppliers and the lead Agency must include a Statement of Intent which outlines how Panel Suppliers, within their role as a panel member, will ensure Local Suppliers have the opportunity to participate in government work.

1.3.2 In the Statement of Intent, the Panel Supplier will describe how:

(a) local industry will be engaged or made aware of opportunities to supply into activities undertaken by the panel member; and

(b) the Industry Capability Network (ICN) will be engaged to make local industry aware of opportunities to supply into activities undertaken by the panel member].

1.3.3 A template Statement of Intent is included in the Proposed Contract included with the documentation for this tender. The template will be replaced with the bidder's Statement of Intent in the final contract agreed with Panel Suppliers.

1.3.4 ICN can assist bidders for Panel Supply contracts with developing their Statement of Intent. See below for contact details for ICN.

1.4 Reporting on VIPP outcomes

1.4.1 If the cumulative value of all goods provided by Panel Suppliers to all purchasers under the contract meets or exceeds the VIPP Thresholds Panel Suppliers are required to report to the lead Agency on:

(a) the opportunities it identified for Local Suppliers; and

(b) the extent to which Local Suppliers were engaged in delivering the Contestable Items.




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Model Clause



Drafting notes






1.6.1 The Department of Economic Development, Jobs, Transport and Resources (DEDJTR) has prepared guidelines for Suppliers on the

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application of VIPP to procurement in 'Implementing the VIPP - Supplier Guidelines' (Guidelines). A copy of the Guidelines and further information about VIPP as well as useful templates are available on the DEDJTR website at www.economicdevelopment.vic.gov.au/victorian-industry-participation-policy.

1.6.2 ICN provides free services to assist bidders. ICN's services are available during the tendering process to assist bidders in preparing their Statement of Intent and to assist successful bidders in implementing the VIPP.

1.6.3 For further information or assistance, bidders can contact ICN on:

(03) 9864 6700 or visit www.icnvic.org.au/vipp

Drafting notes

If a VIPP Plan or LIDP plan is required for the panel contract in question, the relevant RFT Model Clauses should be used.

Where Statement of Intent applies

Clause numbering should be amended subject to the position where the clauses will be inserted within the RFT document and contract precedent.

The ‘Contestable Items’ to be listed at clause 1.2.2 below should reflect the advice provided by the Industry Capability Network, which will be given to the Agency after registering the project on the VIPP Management Centre website (www.icnvic.org.au/vipp).

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Agreed terms


1.1 Definitions7

Completion Date means the date set out at Item X of Schedule X [insert numerical reference to the correct item and schedule in the Contract Precedent].


Contract Manager means the person appointed by the Agency as its representative under cl x.


Regional Victoria has the same meaning as that term is defined in the Regional Growth Fund Act 2011.


Statement of Intent means the statement of intent attached at Schedule X [insert numerical reference to the VIPP Schedule].


VIPP Report means the report prepared by the Supplier pursuant to cl 2.2(b).

Drafting notes

These clauses have been drafted for an agreement where the Agency is a Department. Appropriate amendments will be required where the Agency is an entity other than a Department.

7 These terms should be inserted in to the Definitions clause of the Contract Precedent where the precedent does not already include relevant terms. Where the contract precedent includes any of these or related defined terms, care should be taken to ensure that there is no conflict between the two definitions. Where there is no conflict between the two definitions, it is recommended that the precedent definition is used and the VIPP clauses amended as appropriate.

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2.1 Statement of Intent

In performing its obligations under this Agreement, the Supplier must comply with the obligations set out in the Statement of Intent.

2.2 Reporting

(a) This clause applies on and from the date that the cumulative value of all goods provided by the Supplier to all purchasers under this Agreement meets or exceeds the VIPP Threshold.

(b) Upon Practical Completion or within one month of the Completion Date, the Supplier must provide a written report to the Contract Manager within the time stated in the Contract Manager's request, setting out details regarding:

(i) the opportunities identified in consultation with ICN for engaging local industry, particularly in respect of delivering the Contestable Items, if any; and

(ii) where any opportunities for local industry were identified, the extent to which local industry was engaged, particularly in delivering the Contestable Items.

(c) For the purposes of this clause 2.2, Practical Completion is that stage of the Agreement where all substantive work required by the Agreement has been completed (excluding administrative or regulatory obligations remaining to be fulfilled).

Drafting notes

Omit clause 2.2(c) in a construction contract where Practical Completion is a defined term.

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The Supplier acknowledges and agrees that any statistical information contained in the Supplier's VIPP Report will be:

(a) included in the Agency's report of operations under Part 7 of the Financial Management Act 1994 in respect of the Agency 's compliance with the VIPP in the financial year to which the report of operations relates;

(b) provided to the Responsible Minister for inclusion in the Responsible Minister's report to the Parliament for each financial year on the implementation of the VIPP during that year. and

(c) may be disclosed in the circumstances set out in cl X or as otherwise required by Law.

Drafting notes

Insert a reference to the clause in the contract precedent which addresses disclosure of the Supplier's confidential information. This might be in an audit and/or access to records clause

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Schedule 2 - Local Jobs First - Victorian Industry Participation Policy

1. Contestable items

The Contestable Items within the scope of the Agreement are:

(a) [XXX]

(b) [XXX]

(c) [XXX]

Drafting notes

Set out details here of the Contestable Items

2. Statement of Intent

The Statement of Intent is attached at Attachment 1.

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Statement of Intent Template

[Insert the successful bidder's signed Statement of Intent here]

I, [full name, job title] on behalf of [organisation] commit to the objectives and requirements of the

Victorian Industry Participation Policy Act 2003 (the VIPP Act), in undertaking the [project name and

tender number] for the duration of the contract with [agency].

The VIPP Act objectives are:

promoting employment and business growth by expanding market opportunities for local

industry;

providing contractors with increased access to, and raised awareness of, local industry

capability;

exposing local industry to world’s best practice in workplace innovation, e-commerce and

use of new technologies and materials; and

developing local industry’s international competitiveness and flexibility in responding to

changing global markets by giving local industry a fair opportunity to compete against foreign

suppliers.

Local industry will be able to engage in work undertaken during the course of the panel contract by:

[describe how local industry will be engaged or made aware of opportunities to supply into

activities undertaken by the bidder (prospective panel member) on behalf of the organisation

they represent]

[describe how ICN will be engaged to make local industry aware of opportunities to supply

into activities undertaken by the bidder (prospective panel member) on behalf of the

organisation they represent]

Where applicable, a VIPP Plan or a Local Industry Development Plan (LIDP) will be

completed outlining the local content commitments and how the local content commitments

will be achieved.

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[signature]

[full name]

/ /

[date]

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Grants Page 48

GrantsModel clauses for RFT or other application process


1.1 Overview





1.2.1 Contestable items are goods or services within a procurement activity for which there are competitive international suppliers and Local Suppliers. .

1.3 Consultation with Industry Capability Network (ICN) Victoria

1.3.1 To increase opportunities for local businesses within their project, successful grant recipients (Grantees) are required to consult with Industry Capability Network (ICN) Victoria (ICN) regarding opportunities for local businesses, particularly with regard to Contestable Items. This is to better target the application of VIPP towards areas of contestable procurement.

1.3.2 Grantees are required to consult with ICN after the funding grant contract has been executed. Payment of monies under the funding agreement is based upon Grantees' compliance with the consultation requirement.

1.3.3 The consultation process involves the following steps:

(i) Grantees must register with ICN online at www.icnvic.org.au/vipp when requested to do so by the Agency's representative, typically

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Grants Page 49

the Contract Manager. At this stage, the Grantee will submit an Interaction Reference Number Form (IRN Form) setting out details of the project and likely goods and/or services to be required.

(ii) ICN will review the Grantee's IRN Form and contact the grantee to discuss opportunities for local industry.

(iii) Grantees must negotiate with ICN to determine how opportunities for local SMEs or contestable items will be provided for in the project. This may involve ICN contributing to or reviewing draft designs or participating in particular project meetings.

(iv) Consultation with ICN can take between 30 minutes and a few hours, depending upon the nature of the Contestable Items in the procurement activity.

(v) Once consultation is complete, ICN will issue the Grantee with an Interaction Reference Number (IRN) and a reference letter. The reference letter will set out any agreements reached between ICN and the Grantee during consultation.

(vi) The Grantee will submit their IRN to the Agency's representative to demonstrate to the Agency that they have consulted with ICN, and that ICN is satisfied local industry will be considered in the design of the project.

Drafting notes

Where a VIPP Plan is required

If a VIPP Plan or LIDP plan is required for the grant offer in question, the relevant RFT Model Clauses should be used.

Where a VIPP Plan is not required

If a VIPP Plan is not required, these clauses should be inserted in the Request for Tender documentation or other documentation associated with the particular grant available and its related application process. Clause numbering should be amended subject to the position where the clauses will be inserted within the relevant documentation.


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Grants Page 50




Model Clause



Drafting notes




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Grants Page 51



1.5.1 The Department of Economic Development, Jobs, Transport and Resources (DEDJTR) has prepared guidelines for Suppliers on the application of VIPP to procurement in 'Implementing the VIPP - Supplier Guidelines' (Guidelines). A copy of the Guidelines and further information about VIPP as well as useful templates are available on the DEDJTR website at www.economicdevelopment.vic.gov.au/victorian-industry-participation-policy.

1.5.2 ICN provides free services to assist Grantees. ICN's services are available during the tendering process.

1.5.3 Grantees are advised that ICN is also available to assist them in implementing the VIPP during the term of the grant funding agreement.

1.5.4 For further information or assistance, Grantees can contact:

ICN on (03) 9864 9864 6700 or visit www.icnvic.org.au/vipp.

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Grants Page 52

Contract model clauses

Agreed terms


1.1 Definitions8


Funds means the monies payable by the Agency to the Grantee pursuant to this Agreement specified and payable in accordance with Schedule X [insert numerical reference to the VIPP Schedule].


Interaction Reference Number (IRN) means the number issued by ICN to the Grantee.

IRN Form means the form submitted by the Grantee to ICN via the VMC in accordance with cl 2.1(b).

Project means the project for which the Funds have been granted to the Grantee by the Agency pursuant to cl X.9

Reference Letter means the letter provided by ICN to the Grantee after the Grantee has consulted with ICN regarding opportunities for local industry for the Project.



VIPP Commitments means the commitments of the Grantee as set out in the Reference Letter.


9 This will be a cross-reference to an existing clause in the contract precedent and is not a cross-reference to any of the VIPP clauses.

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Grants Page 53

VIPP Management Centre (VMC) means the online system developed to manage the application of VIPP by suppliers and Government agencies.

Drafting notes

These clauses have been drafted for an agreement where the Agency contracting party is a Department. Appropriate amendments will be required where the Agency contracting party is an entity other than a Department.

Clause numbering should be amended subject to the position where the model clauses will be inserted within the contract precedent.



2.1 Interaction Reference Number

2.1.1 The Grantee must comply with this cl 2.1 as a condition precedent to it becoming entitled to payment of the Funds under this Agreement.

2.1.2 To maximise opportunities for local business within the Project, within x days [Insert the time frame as agreed between the Agency and the Grantee] of the Contract Manager's request, the Grantee must prepare and submit an IRN Form through the VMC setting out:

(i) details of the Project; and

(ii) the goods and services likely to be required to deliver the Project.

2.1.3 When contacted by ICN, the Grantee must consult with ICN in respect of opportunities for local businesses to deliver the goods and services required under this Agreement.

2.1.4 The Grantee acknowledges and agrees that ICN may:

(i) review and contribute to planning for the Project; and

(ii) participate in meetings regarding the Project.

2.1.5 Within five business days of receipt from ICN, the Grantee must:

(i) provide the IRN to the Contract Manager; and

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Grants Page 54

(ii) inform the Contract Manager of any opportunities for local business agreed with ICN. For this purpose, the Grantee may provide the Contract Manager with a copy of the Reference Letter.

2.2 Record keeping and monitoring

2.2.1 The Grantee must prepare and maintain records demonstrating its compliance with any VIPP Commitments.

2.2.2 The Grantee must monitor its compliance with any VIPP Commitments.

2.2.3 The Grantee acknowledges and agrees that the Agency or the Department of Economic Development, Jobs, Transport and Resources may consult with ICN in respect of the Grantee's compliance with any VIPP Commitments.

2.2.4 The obligations set out in this cl 2.2 are in addition to and do not derogate from any other obligations under this Agreement.


The Grantee acknowledges and agrees that any information provided to the Agency or the Department of Economic Development, Jobs, Transport and Resources by ICN in accordance with cl 2.2 may be:

2.3.1 included in the Agency's report of operations under Part 7 of the Financial Management Act 1994 in respect of the Agency 's compliance with the VIPP in the financial year to which the report of operations relates;

2.3.2 provided to the Responsible Minister for inclusion in the Responsible Minister's report to the Parliament for each financial year on the implementation of the VIPP during that year; and

2.3.3 may be disclosed in the circumstances set out in cl x or as otherwise required by Law.

Drafting notes


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Applying VIPP where there are limited or no contestable items Page 55

Design ContractsModel clauses for RFT or other application process


1.1 Overview





1.2.1 Contestable items are goods or services within a procurement activity for which there are competitive international suppliers and Local Suppliers. The VIPP requires that government agencies consider local content, particularly in respect of 'contestable items' as a key criterion in tender evaluation and other relevant procurement processes.

1.3 Consultation with Industry Capability Network (ICN) Victoria

1.3.1 To increase opportunities for local businesses within their project, design contractors (Service Providers) are required to consult with Industry Capability Network (ICN) Victoria (ICN) regarding opportunities for local businesses, particularly in respect of Contestable Items. This is to better target the application of VIPP towards areas of contestable procurement.

1.3.2 Service Providers are required to consult with ICN after the design contract has been executed. Payment of monies under the design contract is based upon Service Providers' compliance with the consultation requirement.

1.3.3 The consultation process involves the following steps:

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(a) Contracted Service Providers must register online with ICN when requested to do so by the Agency's representative. At this stage, the bidder will submit an Interaction Reference Number Form (IRN Form) setting out details of the project and likely goods and/or services to be required.

(b) ICN will review the Service Providers' IRN Form and contact the bidder to discuss opportunities for local industry.

(c) Service Providers must negotiate with ICN to determine how opportunities for local SMEs or contestable items will be provided for in the project. This may involve ICN contributing to or reviewing draft designs or participating in particular project meetings.

(d) Consultation with ICN can take between 30 minutes and a few hours, depending upon the nature of the Contestable Items in the procurement activity.

(e) Once consultation is complete, ICN will issue the Service Provider with an Interaction Reference Number (IRN) and a reference letter. The reference letter will set out any agreements reached between ICN and the bidder during consultation.

(f) The Service Provider will submit their IRN to the Agency's representative to demonstrate that they have consulted with ICN, and that ICN is satisfied local industry will be considered in the design of the project.

Drafting notes

Where a VIPP Plan is required

If a VIPP Plan or LIDP plan is required for the design contract in question, the relevant RFT Model Clauses should be used.

Where a VIPP Plan is not required

If a VIPP Plan is not required, the following clauses should be inserted in the Request for Tender documentation or other documentation associated with the particular contract available and its related application process.

Clause numbering should be amended subject to the position where the clauses will be inserted within the RFT or other documentation.


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Model Clause



Drafting notes





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1.5.1 The Department of Economic Development, Jobs, Transport and Resources (DEDJTR) has prepared Guidelines on the application of VIPP to procurement in 'Implementing the VIPP - Suppliers Guidelines' (Guidelines). A copy of the Guidelines and further information about VIPP as well as useful templates are available on the DEDJTR website at www.economicdevelopment.vic.gov.au/victorian-industry-participation-policy.

1.5.2 ICN provides free services to assist Service Providers. ICN's services are available during the tendering process and post-contract.

1.5.3 Service Providers are advised that ICN is also available to assist them in implementing the VIPP during the term of the design contract.

1.5.4 For further information or assistance, Service Providers can contact :

ICN on (03) 9864 6700 or visit www.icnvic.org.au/vipp

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Contract model clauses

Agreed terms


1.1 Definitions10


Funds means the monies payable by the Agency to the Service Provider pursuant to this Agreement specified and payable in accordance with Schedule X [Insert numerical reference to the VIPP Schedule].


Interaction Reference Number (IRN) means the number issued by ICN to the Service Provider.

IRN Form means the form submitted by the Service Provider to ICN via the VMC in accordance with cl 2.1(b).

Project means the project for which the Funds have been granted to the Grantee by the Agency pursuant to cl x.11

Reference Letter means the letter provided by ICN to the Supplier after the Supplier has consulted with ICN regarding opportunities for local industry for the Project.



VIPP Commitments means the commitments of the Supplier, if any, as set out in the Reference Letter.


11 This will be a cross-reference to an existing clause in the contract precedent and is not a cross-reference to any of the VIPP clauses.

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VIPP Management Centre (VMC) means the online system developed to manage the application of VIPP by suppliers and Government agencies.


2.1 Interaction Reference Number

(a) The Service Provider must comply with this cl 2.1 as a condition precedent to it becoming entitled to payment of the Funds under this Agreement.

(b) To maximise opportunities for local business within the Project, within x days [Insert the time frame as agreed between the Agency and the Service Provider] of the Contract Manager's request, the Service Provider must prepare and submit an IRN Form through the VMC setting out:

(i) details of the Project; and

(ii) the goods and services likely to be required to deliver the Project.

(c) When contacted by ICN, the Service Provider must consult with ICN in respect of opportunities for local businesses to deliver the goods and services required under this Agreement.

(d) The Service Provider acknowledges and agrees that ICN may:

(i) review and contribute to planning for the Project; and

(ii) participate in meetings regarding the Project.

(e) Within five business days of receipt from ICN, the Service Provider must:

(i) provide the IRN to the Contract Manager; and

(ii) inform the Contract Manager of any opportunities for local business agreed with ICN. For this purpose, the Service Provider may provide the Contract Manager with a copy of the Reference Letter.

2.2 Record keeping and monitoring

(a) The Service Provider must prepare and maintain records demonstrating its compliance with any VIPP Commitments.

(b) The Service Provider must monitor its compliance with any VIPP Commitments.

(c) The Service Provider acknowledges and agrees that the Agency or the Department of Economic Development, Jobs, Transport and Resources

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may consult with ICN in respect of the Service Provider's compliance with any VIPP Commitments.

(d) The obligations set out in this cl 2.2 are in addition to and do not derogate from any obligations as set out in the Agreement.


The Service Provider acknowledges and agrees that any information provided to the Agency or the Department of Economic Development, Jobs, Transport and Resources by ICN in accordance with cl 2.2(c) may be:

(a) included in the Agency's report of operations under Part 7 of the Financial Management Act 1994 in respect of the Agency's compliance with the VIPP in the financial year to which the report of operations relates;

(b) provided to the Responsible Minister for inclusion in the Responsible Minister's report to the Parliament for each financial year on the implementation of the VIPP during that year; and

(c) may be disclosed in the circumstances set out in cl x or as otherwise required by Law.

Drafting notes


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DeedAgmt - Web viewStandard VIPPPage 5. ... Please see below for contact details of ICN and...

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