Industry Participation Plan Template
Contracts Greater than $50 million

Purpose and Application

This template provides contractors with structure for developing an Industry Participation Plan for contracts valued at more than $50 million.

<INSERT NAME OF CONTRACTOR>

Industry Participation Plan

FOR

<INSERT PROJECT NAME>

Prepared by: / Name of organisation that prepared this IPP.
Authorised by: / Name of person authorising submission of this IPP to Building Management and Works.
Contact: / Name of person to be contacted by the Department of Commerce if required (see note 5 on the next page for further information).

Version 1.11May 2015

Contents

IMPORTANT INFORMATION FOR CONTRACTORS

PART A: PROJECT/CONTRACT DETAILS

Proponent details:

Contract description:

PART B: ECONOMIC IMPACT

Economic Impact

Benefits

PART C: CONTESTABILITY

Overall local content outcomes expected

Goods and services expected to be sourced locally – WA and Australia

Goods and services expected to be sourced overseas

Estimate of contestable goods and services

PART D: LOCAL INDUSTRY PARTICIPATION

Procurement Practices

PART E: REPORTING

PART F: DEFINITIONS

Version 1.11May 2015

INDUSTRY PARTICIPATION PLAN

IMPORTANT INFORMATION FOR CONTRACTORS

1)The development of an Industry Participation Plan (IPP) is a requirement of the Western Australian Government’s Building Local Industry Policy. Building Management and Works (BMW) complies with this policy by requiring the development of an IPP for all capital works projects with a value greater than $50m, unless exempted by the Department of Commerce. BMW has determined that this project requires an IPP.
2)If contractors require further advice on completing an IPP, they should contact:
Industry Participation Branch (IPB)
Department of Commerce
Level 5, The West Centre
1260 Hay Street
West Perth 6005
Tel: 1300 136 237
3)A copy of the Building Local Industry Policyis available from the Department of Commerce’s websitehere.
4)A copy of your draft IPP is to be submitted to <insert project manager details>within one month of the contract award date or in accordance with the Request document.
5)A copy of your IPP will be provided to the Department of Commerce’s Industry Participation Branch (IPB) for information. The IPB may, through BMW’s project manager, seek to meet with you to discuss issues related to industry capability. While this is helpful to the IPB in developing a picture of market conditions, it is not mandatory.
6)Where circumstances change over the life of the project such that commitments given by you in this IPP also change or can no longer be fulfilled, a new IPP must be submitted to the project manager.
7)Information provided by you will be treated as confidential and will not be disclosed to third parties without prior consent.

PART A: PROJECT/CONTRACT DETAILS

Proponent details:

Name of contractor:
Contact details:

Contract description:

Contract title:
Contract scope:
Contract location:
Estimated total value of contract ($):
Timeframe:

PART B: ECONOMIC IMPACT

Economic Impact

Describe the direct economic impact of the contract on Western Australian/Australian industry in terms of:

Estimated employment during the life of the contract.
Estimated number of trainees and apprentices.

Benefits

Provide details of other qualitative and quantitative benefits expected to be generated in Western Australia/Australia by the contract.

Research and development (Please include a description of the activity, value of contribution and linkages with other external parties).
Strategic alliances with local suppliers.
Regional development, if applicable. (Please include estimated employment numbers and provision of any regional infrastructure).
Aboriginal programs, if applicable.
Community support initiatives, if applicable.
Environmental programs, if applicable.

PART C: CONTESTABILITY

Overall local content outcomes expected

Project phase[1] / WA ($) / Interstate ($) / Overseas ($)
Design
Construction

Goods and services expected to be sourced locally – WA and Australia

Package description / Estimated value ($)
Total

Goods and services expected to be sourced overseas

Package description / Estimated value ($) / Reasons for overseas sourcing
Total

Estimate of contestable goods and services

Package description / Estimated value ($)
Total

PART D: LOCAL INDUSTRY PARTICIPATION

Procurement Practices

Describe the specific procurement practices you and your agents will use to ensure that local industry will be given full, fair and reasonable opportunity to participate in the contract. The response should include, as appropriate, the:

Methods used to ensure accessibility of the contract’s procurement officers to local suppliers, manufacturers and contractors.
Communication strategies used to alert local industry about services and procurement opportunities.
Mechanisms used to cascade the contractors obligations down to 1st and 2nd tier suppliers and how these obligations will be monitored for compliance.
Extent of market testing.
Project pre-qualification process.
Pre-tender briefing process and other means of providing advance notice to local suppliers.
Tender and contract award process (including the tender evaluation criteria used, i.e. award based on price or whole of life value).
Unsuccessful tender debriefing process.
Confirm the contractor’s commitment to work with the Department of Commerce on local industry performance issues including the provision of feedback on the relative competitiveness of local suppliers and promotion of WA’s capabilities overseas.

PART E: REPORTING

The contractor provides an undertaking to report on the implementation of this IPP as follows:

  • If requested, meet with the Industry Participation Branch (IPB) at the Department of Commerce to discuss issues relating to industry capability. The IPB has been asked to arrange these meetings through BMW’s Project Manager.
  • Submit an Implementation Report within two months of the date of practical completion or in accordance with the terms of the contract. These reports will contain details on the type and value of contracts awarded during the life of the project, the name of suppliers and a breakdown of the contract value in terms of WA, interstate and overseas content.

PART F: DEFINITIONS

Contestable – Contestable contracts are contracts for products and services that local suppliers have the capacity and capability to undertake.

Full, fair and reasonable – The terms ‘full’, ‘fair’ and ‘reasonable’ are defined as follows:

Full: Western Australian/Australianindustry has the same opportunity afforded to other global supply chain partners to participate in all aspects of an investment project (for example, design, engineering, project management, professional services, IT, architecture).

Fair: Western Australian/Australian industry is provided the same opportunity as global suppliers to compete on investment projects on an equal and transparent basis, including being given reasonable time in which to tender

Reasonable: Tenders are free from non-market burdens that might rule out Western Australian/Australian industry and are structured in such a way as to provide Western Australian/Australian industries the opportunity to participate in investment projects. (Non-market burdens do not refer to safety or environmental criteria).

Local Content –Local content in major resource projects includes all value-added activities undertaken in Western Australia/Australia.

Industry Participation Plan – An Industry Participation Plan (IPP) is defined as a clear statement of the contractor’s commitment to giving Western Australian/Australian industry full, fair and reasonable opportunity to supply products and services to the project and how the project proponent proposes to fulfill such commitment. The objective of the IPP is to ensure that project proponents and the Western Australian Government work cooperatively to maximise Western Australian/Australian industry participation in the project.

Local supplier – Refers to a supplier whose manufacturing/operational facilities are located in Western Australia or other States and Territories.

Version 1.11May 2015

[1]If these phases are not appropriate (e.g. the contract involves a long term maintenance arrangement) then the contractor may use their own phase descriptions.