How to comply with the Local Industry Policy

If you are leading a government-funded major infrastructure or resource-based project subject to the Local Industry Policy, you are required to give local businesses a genuine opportunity to tender and supply.

As part of this process, you will need to develop a Local Industry Participation Plan (LIPP) for each project, and register it before going to tender.

The LIPP is your opportunity to instruct subcontractors on how you plan to fulfil obligations under the policy.

How to conduct a contestability assessment

'Contestability' is an important factor in supporting the Local Industry Policy key criteria of maximising participation by capable, competitive local businesses. This ensures that local businesses have the opportunity to compete (i.e. offer goods and services) against suppliers from elsewhere in Australia or overseas.

A contestability assessment report shows project proponents how much local competition is likely to exist in the supply chain for their projects. The report helps project proponents:

  • understand the likely scale of work for competitive local industry
  • make informed judgments when completing their LIPP
  • develop realistic evaluation criteria for evaluating tender responses.

Project proponents must consult with ICN Queensland at the pre-tender stage (i.e. before preparing a LIPP) to collaboratively carry out a contestability assessment. This assessment will help project proponents identify contestable goods and services offered by local businesses. During consultation, ICN Queensland will assist project proponents by providing advice and information on contestable goods and services.

The LIPP should then address how local industry will be provided full, fair and reasonable opportunity to tender for work, particularly in relation to the contestable goods and services on the project.

How to develop a Local Industry Participation Plan (LIPP)

Project proponents are required to develop a LIPP that shows how small-to-medium businesses will be given an opportunity to tender for work. Project proponents need to ensure that:

  • they consult with ICN Queensland at the pre-tender stage, prior to the preparation of the LIPP, to collaboratively carry out a contestability assessment (see 'How to conduct a contestability assessment' below)
  • local industry is given every chance to participate in projects, including front-end engineering and design, and project management
  • tenders are free from technical requirements that might rule out local industry
  • consideration is given to supporting local industry in the evaluation process.

The LIPP includes:

  • Part A - how you intend to fulfil Local Industry Policy requirements
    This should be included in tender documentation for potential contractors and can be used to evaluate tender responses.
  • Part B - LIPP commitments of the head contractor who is tendering
    This is often used as the basis for the contractual obligations of the winning contractors.

Under normal circumstances a LIPP is required for each eligible project. However, a single LIPP may be developed for combined projects, programs, standing offer arrangements or projects with low levels of contestability.

Use the LIPP template (DOC, 1.0MB) to develop your plan.

How to register a Local Industry Participation Plan (LIPP)

You must register your LIPP with the Department of State Development, Infrastructure and Planning (DSDIP) 30 days before you go to tender for your head contractors. DSDIP will review, approve and register your plan.

Register your plan by emailing lip@dsdip.qld.gov.au.

Reporting requirements

Project proponents are required to report on the outcomes achieved in implementing their project.

Each successful business will be required to provide details on what goods or services they provided to the project. To report on your project use the Local Industry Policy - project outcome report (XLS, 1.7MB).

Note: This information is aggregated by DSDIP and included in the Minister's annual report to Queensland Parliament. This report helps to identify strengths and weaknesses in Queensland industry and helps determine where support programs can be made available for Queensland businesses.

Protecting sensitive information

The Queensland Government will protect sensitive commercial information when you submit a LIPP.

DSDIP complies with the ethics, probity and accountability in procurement guidelines, published by the Queensland Government.

Related links

Last reviewed
November 15, 2013

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