Industry Participation Guideline

www.spb.sa.gov.au
Industry Participation Guideline
Version
Date Issued
Review Date
Principal Contact
Telephone
1.0
February 2014
February 2016
State Procurement Board
8226 5001
Contents
Overview .............................................................................................................. 3
Object of the Act................................................................................................... 3
Office of the Industry Advocate ............................................................................. 3
IPP General Aims and Objectives ........................................................................... 4
Specific Tiered IPP Requirements ........................................................................... 4
Acquisition Planning Requirements ......................................................................... 5
Supplier Selection Requirements ............................................................................ 6
Contract Management and Reporting Requirements ................................................ 7
Further Information and Resources ........................................................................ 7
Related Policies and Guidelines .............................................................................. 7
Industry Participation Guideline
Version 1.0
Page 2 of 7
Issue Date: February 2014
Review Date: February 2016
Overview
This guideline outlines the key requirements of the Government’s Industry Participation
Policy (IPP) and its application to the procurement of goods and services. All dollar values
are GST inclusive.
In particular, this guideline outlines:
 the aims and objectives of the Government’s IPP;
 the impact of the IPP on the procurement process, particularly acquisition planning,
tendering, supplier evaluation and contract management; and
 the role of public authorities in terms of reporting requirements.
As this guideline addresses only the key aspects of the IPP, public authorities are strongly
encouraged to read and consider the complete IPP and supporting documentation available
at the Office of the Industry Advocate (OIA) website.
Department of Premier and Cabinet Circular PCO33 also outlines the Government’s
requirements in relation to the IPP.
Object of the Act
The object of the State Procurement Act 2004 (the Act) is to advance government priorities
and objectives by a system of procurement for public authorities directed towards:
a) obtaining value in the expenditure of public money;
b) providing for ethical and fair treatment of participants;
c) ensuring probity, accountability and transparency in procurement operations.
The application of the Government’s IPP must have regard to, and be consistent with, these
objectives.
Office of the Industry Advocate
The OIA plays a key role in implementing the IPP by:
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liaising with responsible public authorities at the acquisition planning stage;
providing public authorities, tenderers and contractors with industry capability
information;
meeting with government buyers on behalf of local companies;
assessing any unnecessary impediments to bidding by local companies;
scoring of IPP Plans for use in tender evaluation;
advising of tenderers who have not submitted compliant plans;
reviewing tender awards and contracts to determine if the assessment criteria has
been applied and if obligations are being complied with;
collecting and evaluating contractor’s IPP Plan reports;
making recommendations for improving industry participation, where appropriate, to
the relevant public authority; and
reporting annually to Cabinet on IPP outcomes.
Industry Participation Guideline
Version 1.0
Page 3 of 7
Issue Date: February 2014
Review Date: February 2016
IPP General Aims and Objectives
The IPP aims to ensure that ‘South Australian small and medium enterprises are given full,
fair and reasonable opportunity to tender and participate in significant public and private
sector projects’.
The IPP requires public authorities to consider their aims and objectives and applies to all
South Australian Government goods and service procurements on a tiered dollar value basis.
The IPP adopts value for money as the prime consideration in evaluating tender bids for
Government contracts and requires public authorities to consider the broader impact of the
procurement on a whole of life basis, including economic development and the benefits to
local industry.
The definition of value for money should specifically take into account the potential
advantages of buying locally, such as shorter delivery times, local backup and service,
availability of spare parts, contribution to the achievement of government policy objectives
which support local business such as employment creation and industry development, and
potential for creating strategic partnerships and cooperative product development.
The IPP operates within the context of, and is consistent with, relevant national and
international agreements to which South Australia is a signatory. The definition of ‘local’ in
the IPP refers to any Australian or New Zealand supplier consistent with the Australian New
Zealand Government Procurement Agreement.
The IPP does not provide preferential treatment for local suppliers but instead focuses on
creating opportunities for small and medium enterprises.
Specific Tiered IPP Requirements
Procurements between $22,000 and less than $220,000
In accordance with the Board’s Simple Procurement Guideline, officers must undertake an
efficient process that achieves the Board’s procurement objectives in a timely and cost
effective manner by seeking a minimum of 3 written quotes.
The IPP requires that at least one South Australian supplier quote should be included where
possible within the required minimum three quotes provided the value for money, ethical
and fair treatment and probity, accountability and transparency requirements of the Act are
met.
Contracts valued at $220,000 and over, and less than $4 million (or less than $1 million in
regional areas)
There are no specific requirements for contracts valued at $220,000 and over, and less than
$4 million (or less than $1 million in regional areas) however public authorities should
encourage successful tenderers to identify and consider local suppliers wherever possible.
Industry Participation Guideline
Version 1.0
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Issue Date: February 2014
Review Date: February 2016
Contracts valued at $4 million and over, and less than $50 million (or $1 million and above in
regional areas)
For contracts valued at $4 million and over, and less than $50 million (or $1 million and
above in regional areas), tenderers are to prepare a Standard South Australian Industry
Participation Plan to:
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provide full, fair and reasonable opportunity to identify and consider products and
capabilities provided by local SME’s;
promote economic contribution to the state including for employment outcomes and
economic growth; and
monitor and record the outcomes of local SME involvement.
For contracts valued at between $4 million and less than $10 million, completion of a
Standard South Australian IPP Plan is voluntary, however, companies that fail to submit a
compliant plan will receive a zero score for the Industry Participation Plan weighted criteria.
Submission of a compliant IPP Plan above $10 million will be mandatory and where this is
not met the tender will be classed as non-compliant.
Annual reporting on local SME participation and commitments in IPP Plans will be required
throughout the duration of the contract and at its completion and will be a contractual
obligation for successful tenderers.
Strategic projects and contracts valued at $50 million and over
For all contracts valued at $50 million and over and projects (regardless of value) declared
by Cabinet to be a ‘Strategic Project’ (in accordance with the IPP criteria), tenderers are
required to prepare a Tailored South Australian Industry Participation Plan. The Tailored Plan
will be prepared by the OIA with the responsible public authority and will be specific for the
project.
For projects in this category, reporting requirements, including frequency, will be negotiated
between the public authority and the successful tenderer during contract award. Reporting
will occur at least bi-annually and at the completion of the contract and will be a contractual
obligation for successful tenderers.
Acquisition Planning Requirements
The OIA is involved in the preparation of acquisition plans for all contracts subject to the IPP
in order to maximise the economic contribution to the state.
Responsible public authorities are required to contact the OIA as soon as they begin
planning a procurement valued at $4 million and over (or $1 million and above in regional
areas). This must be done prior to any tender documents being released.
Public authorities are encouraged to use the Industry Capability Network database, through
consultation with the OIA, during the market analysis phase of the procurement process for
all contracts over $220,000.
Industry Participation Guideline
Version 1.0
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Issue Date: February 2014
Review Date: February 2016
For procurements within the scope of the IPP, potential tenderers must be informed of the
IPP requirements at the initial invitation stage.
The Board’s standard tender and contract documents reflect the requirements of the IPP
although relevant clauses may require amending to suit individual contracts.
Supplier Selection Requirements
Completing Industry Participation Plans
For procurements within the scope of the IPP, tenderers are required to complete an
Industry Participation Plan. If short listing is to occur, then the Industry Participation Plan
requirements will apply to short listed tenderers only.
The Industry Participation Plan will identify how the tenderer will provide full, fair and
reasonable opportunities for local SME’s to compete for State Government contracts or
participate in major public and private sector projects.
The OIA will assist public authorities with applying the requirements of the IPP to their
project and tender documentation. The OIA will also assist tenderers to develop Industry
Participation Plans and will provide information to public authorities about local supplier
capability.
The OIA can assist tenderers to prepare an Industry Participation Plan by providing capability
information on local suppliers, however ownership of the plan and responsibility to deliver
against it remains with the tenderer.
Panel Contracts
Tenderers aiming to gain a position on a panel, will be required to sign a Declaration of
Intent as part of that process. Should the tenderer subsequently be awarded a contract over
$4 million ($1 million in regional areas) through the panel arrangement, the successful
tenderer will be required to prepare a Standard or Tailored IPP Plan as appropriate.
Considering Industry Participation Plans
For all procurements in scope, the responsible public authority will receive the Industry
Participation Plan with the tender submission and will forward a copy to the OIA.
For contracts valued at less than $10 million, completion of a Standard South Australian IPP
Plan is voluntary, however, companies that fail to submit a compliant plan will receive a zero
score for the Industry Participation Plan weighted criteria.
Submission of a compliant IPP Plan above $10 million will be mandatory and where this is
not met, the tender will be classed as non-compliant. The OIA will make an initial judgement
about whether the Industry Participation Plan is compliant. The OIA then will make a more
detailed evaluation, scoring each plan against a set of criteria.
The Industry Participation Plan will be considered through a weighted evaluation criterion in
the tender evaluation process. This weighting will be determined by the procuring public
authority and will be a minimum of 5%.
Industry Participation Guideline
Version 1.0
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Issue Date: February 2014
Review Date: February 2016
The IPP also makes provision for past performance on compliance with previous Industry
Participation Plans to count towards future tender scores.
Contract Management and Reporting Requirements
Ongoing monitoring of Industry Participation Plan commitments will be undertaken by public
authorities when working with suppliers, as part of their contract management regimes and
by requiring regular reports from suppliers.
The successful tenderer’s Industry Participation Plan commitments will be included within the
contract and reporting on Industry Participation Plan outcomes will be required by the
successful tenderer.
Further Information and Resources
For feedback or assistance regarding this guideline, please contact:
State Procurement Board Secretariat
ph: (08) 8226 5001 fax: (08) 8226 5667
email: [email protected]
www.spb.sa.gov.au
Related Policies and Guidelines
SA Government Industry Participation Policy
DPC Circular PCO33 Industry Participation Policy
SPB Standard Tender and Contract Document Policy and Guideline
SPB Risk Management Guideline
SPB Acquisition Planning Guideline
SPB Simple Procurement Guideline
Industry Participation Guideline
Version 1.0
Page 7 of 7
Issue Date: February 2014
Review Date: February 2016

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