The South Australian Industry Participation Policy (IPP) specifies that for all expenditure above $33,000, the government must determine if there is a business in the state or the region that can deliver the product or service.
The government must also ensure there is always a minimum of one business in the State quoting for work. This creates an enormous potential for businesses employing South Australians.
The policy aims to deliver greater economic contribution to the State from procurement, with benefits such as:
- employment and workforce development
- improving industry capability and capacity through capital investment
- retaining economic activity in the state
- using innovation to develop the supply chain.
The Industry Participation Policy applies to:
- State Government procurement of goods and services including infrastructure and construction
- Public Private Partnership projects
- Federally-funded infrastructure and construction projects managed by the State Government private sector projects receiving State Government support of more than $2.5 million cash and in-kind.
The policy is tiered to ensure the costs of complying are in proportion to the opportunity for local industry participation and minimise red tape for both businesses and government.
There are no specific requirements for tenders with a value of less than $33,000; however government agencies should ensure competitive businesses employing South Australians are used whenever possible.
Requirements for State Government
Government agencies need to consider the Industry Participation Policy during the acquisition planning stage of all procurements above $33,000 and incorporate the required documentation into their tender package.
Requirement for business
Businesses need to complete the Industry Participation documents as required by the tender documentation. These may include:
- a Declaration of Intent
- an Employment contribution test – metropolitan or regional
- an Industry Participation Plan - standard or tailored.
Once a contract has been awarded, business is expected to meet the Industry Participation commitments made through the submission of their tender documents and in the case of an Industry Participation Plan, this becomes a contract condition.
Business may also be required to report on their industry participation outcomes through the life of and at the end of the contract.
The Office of the Industry Advocate will:
- provide assistance to government agencies, if required, to comply with the policy and when relevant to assist in the evaluation and scoring of industry participation plans
- provide government agencies with details of businesses in the State that meet their needs
- promote the policy to government agencies to raise awareness
- annually report to Cabinet on South Australian policy outcomes.
Prequalifications and panels
The Office of the Industry Advocate has established a South Australian Government Prequalification and Panel Handbook to support the One Prequalification System and Lead Agency Model procurement reforms approved by the State Government.
The handbook is a resource to assist South Australian businesses to identify existing prequalification arrangements and panel contracts.
Government agencies can use this handbook to better understand their options when purchasing in key spend categories.
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- Download the Industry Participation Policy documents
For more information contact
Office of the Industry Advocate
Phone 8226 8956