Local jobs first policy compliance

Policy overview

The Local Jobs First Policy consists of the Victorian Industry Participation Policy (VIPP) and the Major Project Skills Guarantee (MPSG). The VIPP ensures that small and medium enterprises are provided an opportunity to compete for Victorian Government contracts. The MPSG ensures that a percentage of total hours worked on construction projects is undertaken by apprentices, trainees and cadets.

Applying the VIPP and MPSG

The VIPP applies to all Local Jobs First standard projects and Local Jobs First strategic projects. These are defined in the table below:

Project Value	Classification
Regional construction project with a project value over $1m or as determined to be a standard project by the Minister*	Local Jobs First standard project
Metropolitan or state-wide construction project with a project value over $3m or as determined to be a standard project by the Minister*	Local Jobs First standard project
Projects valued over $50m or as determined to be a strategic project by the Minister*	Local Jobs First strategic project

* The Local Jobs First Act 2003 is jointly and severally administered by the Minister for Jobs and Industry and the Minister for Employment.

The MPSG will apply to all Local Jobs First projects valued at over $20m.

Requirements under VIPP and MPSG will apply regardless of the source of project funding (State Government appropriations, internal TAFE funding, grants or other contributions).

Tender requirements for both VIPP and MPSG should be included in RFT (or RFP) documentation to allow tenderers to understand their requirements under the Local Jobs First Policy.

Regional projects valued under $1m and metropolitan or state-wide projects valued under $3m have no specific requirements under the Local Jobs First Policy, unless deemed to be a Local Jobs First standard project by the Minister under the Local Jobs First Act 2003. Where in doubt, you may wish to consult with your OTCD representative to confirm.
Nonetheless, for projects of this size, you may choose to incorporate Local Jobs First Policy objectives and principles highlighted in section 4 of the Local Jobs First Policy.
Local industry development plan
Although the requirement for tenderers to submit a local industry development plan (LIDP) is only required for Local Jobs First standard and strategic projects, you may choose to include the LIDP as a tender requirement for regional projects valued under $1m or metropolitan or state-wide projects valued under $3m.
Projects which fall into the value ranges stated above will typically be Local Jobs First standard projects and have the following requirements under the Local Jobs First Policy.
Evaluation criteria
For a Local Jobs First standard project, the following criteria and weighting must be applied when evaluating tenders:
- 10% for industry development, including commitments made in relation to the VIPP as outlined in the LIDP, and
- 10% for job outcomes.
Local industry development plan
Tenderers must submit an ICN-certified local industry development plan (LIDP) as part of their tender response for compliance with the Local Jobs First Policy.
The Industry Capability Network (ICN) is a government-funded organisation responsible for working with government agencies, such as TAFEs, to help support the implementation of the Local Jobs First Policy and verify contractor compliance with their LIDP commitments. Tenderers must submit their LIDP to the ICN a minimum of 3 days prior to the tender closing date to receive ICN certification.
You should clearly articulate this requirement in the tender documentation as you will not be permitted to accept a tender submission that does not include a compliant, ICN-certified LIDP.
The successful tenderer must comply with the LIPD submitted as part of their tender response. As such, it is important to structure the contract to ensure that the contractor complies with their LIDP commitments, as well as performance monitoring.
Local jobs first reporting and monitoring
TAFEs should monitor and report on the delivery of Local Jobs First requirements for construction projects, including contract requirements (see section 14 of the Local Jobs First Policy). Further information on compliance reporting requirements under the Local Jobs First Policy is available.
Local jobs first standard projects and Major Project Skills Guarantee
Under the Major Projects Skills Guarantee (MPSG), projects valued between $20m and $50m must utilise Victorian registered apprentices, Victorian registered trainees or cadets for at least 10 per cent of the contract works’ total estimated labour hours.
Evaluation criteria
The following criteria and weighting must be applied when evaluating tenders:
- 10 per cent for industry development, including commitments made in relation to the VIPP as outlined in the LIDP, and
- 10 per cent for job outcomes. For MPSG-applicable projects, the 10 per cent weighting will include commitments to providing opportunities for apprentices, trainees and cadets.
Local industry development plan
Tenderers must submit an ICN-certified local industry development plan (LIDP) as part of their tender response for compliance with the Local Jobs First Policy.
The Industry Capability Network (ICN) is a government-funded organisation responsible for working with government agencies, such as TAFEs, to help support implementation of the Local Jobs First Policy and verify contractor compliance with their LIDP commitments. Tenderers must submit their LIDP to the ICN at least 3 days prior to the tender closing date to receive ICN certification.
You should clearly articulate this requirement in the tender documentation as you will not be permitted to accept a tender submission that does not include a compliant, ICN-certified LIDP.
The successful tenderer must comply with the LIPD which they submitted as part of their tender response. As such, it is important to structure the contract to ensure that the contractor complies with their LIDP commitments, as well as performance monitoring.
Local jobs first reporting and monitoring
TAFEs should monitor and report on the delivery of Local Jobs First requirements for a construction project, including contract requirements (see section 14 of the Local Jobs First Policy). Further information on compliance reporting requirements under the Local Jobs First Policy is available.
Local jobs first strategic projects and Major Project Skills Guarantee
Under the Major Projects Skills Guarantee (MPSG), construction projects valued at over $50m must utilise Victorian registered apprentices, Victorian registered trainees or cadets for at least 10 per cent of the contract works’ total estimated labour hours.
Local content requirements
The Minister has set the following local content requirements to apply to all Local Jobs First strategic projects, unless a Ministerial exemption is provided:
- 90% for construction projects
- 80% for a services project or a maintenance project, and
- 80% for the maintenance or operations phase of a strategic project.
Local content refers to the percentage of a good or service (determined by cost) originating from Australian or New Zealand markets. This includes manufactured goods or services provided by Australia or New Zealand.
Evaluation criteria
The following criteria and weighting must be applied when evaluating tenders for Local Jobs First standard projects over $20m:
- 10% for industry development, including commitments made in relation to the VIPP as outlined in the LIDP, and
- 10% for job outcomes. For MPSG-applicable projects, this 10 per cent weighting will include commitments to providing opportunities for apprentices, trainees and cadets.
Local industry development plan
Tenderers must submit an ICN-certified local industry development plan (LIDP) as part of their tender response for compliance with the Local Jobs First Policy.
The Industry Capability Network (ICN) is a government-funded organisation responsible for working with government agencies, such as TAFEs, to help support the implementation of the Local Jobs First Policy and verify contractor compliance with their LIDP commitments. Tenderers must submit their LIDP to the ICN at least 3 days prior to the tender closing date to receive ICN certification.
You should clearly articulate this requirement in the tender documentation as you will not be permitted to accept a tender submission that does not include a compliant, ICN-certified LIDP.
The successful tenderer must comply with the LIPD submitted as part of their tender response. As such, it is important to structure the contract to ensure that the contractor will comply with their LIDP commitments, as well as performance monitoring.
Local jobs first reporting and monitoring
TAFEs should monitor and report on the delivery of Local Jobs First requirements for construction projects, including contract requirements (see section 14 of the Local Jobs First Policy). Further information on compliance reporting requirements under the Local Jobs First Policy is available.
- TAFEs should have a Local Jobs First administrator to support implementation, monitoring, reporting and compliance activities for construction projects
- the Minister may exempt an agency from the requirements of the Local Jobs First Policy, in respect of a standard project or a strategic project, if the Minister is satisfied that exceptional circumstances apply. An exemption must be submitted at least 30 days prior to the release of tender documentation or grant documents (see 7.5 of the Local Jobs First Policy)
- TAFEs must engage with the Industry Capability Network Victoria consistent with the Local Jobs First Policy guidelines (see 7.5 of the Local Jobs First Policy), and
- TAFEs should monitor and report on the delivery of Local Jobs First requirements for construction projects, including contract requirements (see section 14 of the Local Jobs First Policy).

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Updated 19 September 2024