Victorian Industry Participation Policy

Presentation for Agencies on How to Prepare a VIPP Plan in the enhanced VIPP Management Centre

2013

Grants & Design

Why is there a new process for grants and designers?

Old VIPP Enhanced VIPP from 1 January 2013

The application of the VIPP process on grants and design contractors was not suitable for the following reasons:

•Design Contractor:o VIPP not applied, under thresholdo VIPP applied, no requirement for ICN

interaction

•Grant Recipiento VIPP applied to grant recipient, not the

constructoro VIPP applied, no requirement for ICN

interactiono VIPP not applied, under threshold

• Grant applicants and all design contractors for projects over the VIPP threshold to liaise with ICN to ascertain localisation opportunities via VMC as a condition of contract.

• Design contractors for capital projects likely to exceed the thresholds must seek an Interaction Reference Number (IRN) regardless of the cost of the design component.

Grants and design contracts overview• Grant applicants to liaise with ICN to ascertain localisation opportunities

where the value of the grant is a substantial component of a project/procurement and is over the VIPP thresholds.

• Design contractors to liaise with ICN to ascertain localisation opportunities where the total value of the whole project meets or exceeds the VIPP monetary thresholds, the value of the design contract itself is not relevant.

• ICN reviews and determines level of contestable procurements

• Nil/ Limited contestability – no interaction with ICN required

• Contestable Procurements – ICN will liaise with the grant applicant/ design contractor to discuss and outline any identified Contestable Procurements

• Ensures local opportunities are not inadvertently designed out and VIPP objectives will be applied at the earliest point of the contract/ project

Grant & Design Process Timeline

Key

Department/ Agency

Grant Recipient / Designer

ICN

Bidder/Supplier Process

Dept/Agency/ICN Process

Successful Grant Applicant/ Designer Selected

ICN’s involvement to help increase opportunities for

SME’s, is a condition of grant/contract.

IRN Request

Successful applicant/ bidder lodges grant/

design details on VMC to request IRN.

ICN IRN Request Review

ICN allocates IRN request to Business Capability Advisor (BCA).

BCA contacts recipient/ contractor to discuss localisation opportunities.

Allow 2-3 business days for initial contact.

IRN Letter

Contestable opportunities are identified.

ICN issues IRN Letter, detailing a series of interactions between the

recipient/ contractor and ICN.

IRN Letter

There are NO contestable opportunities identified.

ICN issues IRN Letter to recipient/contractor.

IRN Letter

Design specs and/or procurement has been completed without ICN consultation.

ICN cannot issue IRN to recipient/contractor.

IRN Letter Submission

Recipient/ contractor provides IRN Letter to Department/ Agency.

IRN Collected

IRN collected for annual reporting purposes.

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TIPS:

1.Begin Reference # Process: to request IRN, click button.

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TIPS:

1.Mandatory Fields: ensure all mandatory fields (denoted by ) are completed.

2.Grant/design: select whether the IRN request relates to a grant or design contract.

3.Submit: to submit request, click button.

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TIPS:

1.Interaction Reference Number (IRN)

2.Interaction details between grant recipient / design contractor and ICN.

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VIPP Timelines

Tender Registration & Contestability Assessment

Agency registers tender on VMC, and undertakes contestability assessment. ICN reviews tender details.

Tender Documentation

Include the following, where applicable, in RFT documentation:

•VIPP model clauses

•Contestable items

•Timeframes

VMC Account Management

Agency to register contract manager details on the VIPP Management Centre (VMC)

Registration of Procurement ActivityVIPP Plan

Shortlisted bidders/ suppliers complete online electronic VIPP Plan

ICN Evaluation Report

ICN will prepare an evaluation report for department/ agency.

The report MUST be considered as part of a department/agency tender evaluation and selection of a successful bidder/ supplier.

Min. 2-4 days prior to consideration

by tender evaluation panel

Department / Agency Timeline

Contract Award

VIPP commitments MUST be negotiated as reportable conditions of the contract.

Provide ICN contract award information via VMC.

Monitoring

Department/ agency and supplier to monitor VIPP outcomes through contractual commitments.

Post Contract Verification

Department/agency provides actual VIPP outcomes for procurement activity to ICN via VMC.

Monitoring

Request VIPP Outcomes

Department/ agency provides monitoring table to supplier and requests reporting of actual VIPP outcomes.

ICN Report

ICN will compare and assess the suppliers actual VIPP achievements against their initial commitments and provide advice to department/agency

Key

Department/ Agency

Bidder/supplier

ICN

Reporting

2-3 months from RFT release

Min. 2 days prior to consideration by tender evaluation

panel

VIPP Management Centre (VMC)• The VIPP Management Centre (VMC) is an online platform where agencies

can manage their VIPP applicable tenders and other VIPP obligations.

• The VMC is available at https://www.icnvic.org.au/vipp

• Agencies can register tenders, undertake contestability assessments, notify ICN of post tender negotiations, contract award information and fulfil post contract requirements via VMC.

• VMC has been optimised to work on the following web browsers.

– Google Chrome

– Mozilla Firefox

– Microsoft Internet Explorer 9

• VMC is not yet compatible with smartphone/tablet devices.

Agencies register tender on the VMC

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TIPS:

1.Account Type: select Gov. Agency.

2.Create Account: to create a new Gov. Agency user account..

3.Forgotten password: retrieve password via email.

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TIPS:

1.Add new tender: register new tender and undertake contestability assessment.

2.Comms Room/Contact VIPP: leave a message or question for ICN to then respond.

3.CA: view Contestability Assessment (CA) outcome. Available when the pdf icon is displayed.

4.View Plans: indicates bidder/s who have submitted VIPP Plans.

5.Account Details: modify user details

6.FAQ’s

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TIPS:

1.Registration: register tender prior to RFT release.

2. Tender Value: all information is accessible ONLY to ICN and the account holder.

3.Required VIPP response dates: indicates when bidders/suppliers must submit their VIPP Plans and certification letters to the Agency along with their bid. This is usually close of tender.

4.Tenderer ICN submission date: accounts for ICN’s turnaround time. Approx. 2 business days

5.Shortlisted bidders: Agency may provide “N/A” where this not yet available. Agency to update information as required.

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Tips:

1.Mouse Rollover: simply place your mouse on the to access definitions.

2.Category: dynamic set of questions generated, based on initial selection.

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Tips:

1.Breadcrumbs: indicates number of questions.

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Tips:

1.Contestability Assessment: ICN will review the contestability assessment within 2 working days. ICN may request scope of works/specification for further information.

John Smith

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Tips:

1.VIPP Plan requires: indicates ICN’s recommendation on how VIPP should be applied.

2.VIPP Clauses: available from Department of State Development, Business and Innovation (DSDBI)

3.Contestable Inputs: indicates potential contestable items for the project. Not an exhaustive list and does not include non-contestable items that may be required to fulfil the contract.

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Bidders VIPP Plans on the VMC

Create New VIPP Plan

• Bidders can ONLY begin an online VIPP Plan when the government department/agency has registered the tender on VMC.

• The following slides indicate how to complete the online VIPP Plan:

1. Click “Add new plan” button.

2. Search for name of tender or tender reference number.

• Can’t find tender? – click the “Can’t find Tender” link to contact the relevant government department/agency .

3. Complete each section of the VIPP Plan

TIPS:

1.Can’t find tender? - link

2.Predictive search feature streams results to the name of tender and tender reference number fields, dynamically updating results as a user types. Note: To clear field, double backspace.

3.Navigation: all fields must be completed on each page before users can proceed to the next section.

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TIPS:

1.Contestable Items: pre-populate based on contestability assessment outcome.

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TIPS:

1.To remove items, check the clear box.

2.Contestable item.

3.Percentages of Imported Content/Local Content auto-calculate (Σ=100%). Either field must be populated to auto calculate.

4.Percentage of Total Local Content auto-calculated.

5.Total Percentages of Contract Content and Total Local Content auto-calculate (Total Contract Content Σ = 100%)

6.Add another item: click link to add additional items

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Tips:

1.Pre-fabricated and previous ePlan responses: click to expand or collapse.

2.Copy & Insert: click on the link to copy and insert text into field.

New VIPP Plan

Tips:

1.VIPP Plan: bidders/suppliers must submit their certification letter and VIPP Plan as part of their bid submission.

VIPP Plan Certification Letter

Tips:

1.Certification Letter: Bidders/suppliers must submit their certification letter and VIPP Plan as part of their bid submission

ICN Certification and Agency Evaluation Report

ICN VIPP Evaluation Report• ICN will prepare an evaluation report for the department/ agency to

use in their tender evaluation.

• The report includes:

– Assessment of merits of the key VIPP areas

– Highlights areas that require clarification

– Risk statements

– Overall comparative assessment of VIPP Plans

• The report does not include a ranking/rating.

• The report MUST be considered as part of a department/agency tender evaluation and selection of a successful bidder/ supplier.

• ICN recommendations to mitigate risk/s

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TIPS:

1.Evaluation/Award: view ICN evaluation report

ICN VIPP Evaluation Report – Example 1 (BAD)

Tips:

1.High overall ANZ value-added activity commitment.

2.Overcommitments

3.Omitted a number of items that may be required to fulfil the contract.

4.Implementation plan contained limited detail.

5.Assessment Outcome: High Risk = VIPP commitments unlikely to be achieved.

6.Assessment Outcome: ICN recommendations

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ICN VIPP Evaluation Report – Example 2 (GOOD)

Tips:

1.Achievable overall ANZ value-added activity commitment.

2.ICN believes their may be scope for further local industry involvement on the project

3.Implementation plan contained sufficient detail and commitments.

4.Assessment Outcome: Low Risk = VIPP commitments likely to be achieved.

5.Note: changes in VIPP commitments during post tender negotiations requires VIPP Plan re-certification/ evaluation

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Post Tender Negotiations

Post Tender Negotiations

• If VIPP commitments change due to post tender negotiations, government department/agency informs bidder/s and ICN that VIPP Plan re-certification/evaluation is required.

1. Alert ICN of changes to VIPP commitments via VMC.

2. ICN will contact the Agency to discuss the matter and advise of the appropriate process.

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TIPS:

1.Post tender: alert ICN to changes of preferred bidder/s VIPP commitments.

Contract Award

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TIPS:

1.Evaluation/Award: agencies mandated to provide contract award information to ICN.

VIPP Building Company 11

TIPS:

1.Winning Tenderer: select winning tenderer from drop down menu. The winning tenderer must be included as short-listed tenderer prior to award.

Post Contract Verification

Monitoring & Post Contract Reporting

• Upon the completion of contracts (issued post 1st January 2013) where the VIPP applies, the supplier/ contractor must provide the VIPP outcomes to the government agency/department when requested.

• The supplier/contractor must use the VIPP Monitoring Table, and submit a declaration attesting to the veracity of the outcomes reported. The agency provides these details to the ICN for verification via VMC (refer to following slides).

• These forms will be available at: www.dbi.vic.gov.au/vipp

VIPP Monitoring Table

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TIPS:

1.Post Contract: provide post contract award information and documentation.

ICN Post Contract Review (PCR) Report

Further Information

Contacts• For any policy queries regarding the application of the VIPP to a

particular activity, contact:

Department of State Development, Business and Innovation (DSDBI)

Email: vipp@dbi.vic.gov.au

Tel: 13 22 15

www.dbi.vic.gov.au

• For queries regarding the VIPP Management Centre or to register your project contact:

Industry Capability Network (Victoria) Ltd

Tel: (03) 9864 6700

www.icnvic.org.au/VIPP