Local Industry Participation Plan

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					                                       [Project-proponent]
                                             (see definitions in LIP Guidelines)




          Queensland Local Industry Participation Plan *
                                                            for


                                             [Eligible Project Title]



Document Control


Plan prepared by:                  Type name of organisation or representative that prepared this Plan
Plan type:                         Type “Draft #” or “Final”
This plan authorised by:           Type name of person authorising submission of this plan to DEEDI
Signature:                         Signature of person authorising submission of this plan to DEEDI
Date:                              Insert the date this document is submitted to DEEDI
                                   DEEDI                                           lip@deedi.qld.gov.au
                                   Type recipient name here                        Type email address here
Report Recipients:
                                   Type recipient name here                        Type email address here
                                   Type recipient name here                        Type email address here
                                               Add or delete lines as required


Important information:
1. Agencies and GOCs must have registered the Eligible Project with DEEDI at the time it was decided that the project
   will proceed to implementation and prior to preparing this LIPP. Project proponents must have registered the Eligible
   Project with DEEDI on publication of the final TOR for the EIS and prior to preparing this LIPP.
2. This LIPP must be sent to lip@deedi.qld.gov.au for registration at least 30 days prior to going to tender for project
   construction or capital asset acquisition. The LIPP must be approved by a senior representative of the project
   proponent.
3. All nominated report recipients above will be notified by DEEDI following registration of this LIPP.
                                                                                                            Local Industry Participation plan template


Table of Contents


Abbreviations ....................................................................................................................................... 3

Background Information for Local Industry Participation Plan Authors ............................................... 4
   LIPP guidance .................................................................................................................................. 5

Part A: Local Industry Participation Plan – preparation for tender documentation ............................. 6
   A.1        Project Summary .................................................................................................................. 6
   A.2        Local Industry Contestability Assessment ............................................................................ 8
   A.3        Scope of ICN Services ......................................................................................................... 9
   A.4        Expectations of Local Industry inputs for the eligible project ............................................. 10
       A4.1          Opportunities for participation by local industry .......................................................... 10
       A4.2          Support of Regional Development in Queensland ..................................................... 11
       A4.3          Opportunities for local industry to value-add .............................................................. 11
       A4.4          Other industry development opportunities .................................................................. 12
       A4.5          Development of an internationally competitive local industry ..................................... 13
       A.4.6         Employment, training and skills development opportunities ....................................... 14
   Schedule 1: Expectations of Local Industry inputs for the eligible project ..................................... 16
   Schedule 2 : Detail of Overall Total Project Inputs ........................................................................ 17

Attachment 1: Project Proponent’s - Contractor Tender Evaluation Plan (Optional) ........................ 18
   Tender Assessment Matrix ............................................................................................................ 18




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Abbreviations
ANZ Australia and New Zealand
DEEDI the Queensland Department of Employment, Economic Development and Innovation
GOC Queensland government owned corporation
ICN Queensland Industry Capability Network Queensland, a Division of QMI Solutions
LIP Local Industry Policy – a fair go for local industry, Updated October 2010
LIPP Local Industry Participation Plan
OAM Office of Advanced Manufacturing, DEEDI




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Background Information for Local Industry Participation Plan
Authors
The Local Industry Policy – a fair go for local industry, Updated October 2010 (LIP) and associated
Guidelines outline the project proponent’s obligations in relation to the development and implementation of a
Local Industry Participation Plan (LIPP). These documents are available at www.industry.qld.gov.au. LIPP
authors should refer to these documents while preparing this LIPP.

The following LIPP template is provided to give guidance to project proponents for consideration of the LIP
obligations within overall tender evaluation.

The criteria and ratings used below should be regarded as guides only. Project proponents may develop
their own criteria and scoring methods for assessing tender responses’ compliance with the LIP, provided
they are consistent with the LIP’s requirements that eligible projects put out to tender must:
   have local content as one of their general evaluation criteria, and
   address the following in a LIPP:
    - in quantifiable and qualitative terms, the economic benefits to Queensland arising from activities
       proposed in the LIPP
    - how the proposed project will actively support the LIP key criteria.

Project proponents must consult with ICN Queensland prior to the preparation of their LIPPs to identify
contestable goods or services. ICN Queensland can also assist project proponents prepare the LIPP to meet
LIP obligations free of charge.

The preparation of the LIPP must be undertaken in parallel with the development of the project and at the
commencement of the initial conception phase of the procurement process.

The LIPP must be registered with DEEDI at least 30 days prior to going to tender for project
construction or the acquisition of capital assets. To facilitate registration, project proponents should
consult with OAM, DEEDI on the LIPP for an eligible project prior to registration. DEEDI will assess the
content of the plan against project proponents’ LIP obligations and provide advice within 14 days of receiving
the draft LIPP at lip@deedi.qld.gov.au

The LIPP template consists of two parts:
   Part A
    Purpose: to outline the project proponent’s expectations for the project in relation to the LIP objectives.
    Part A is intended for inclusion in tender documentation for release to potential tier 1 contractor(s) and
    subsequent evaluation of tender responses against the project proponent’s expectations.
   Part B
    Purpose: Part of the tender documentation which captures the LIPP commitments of tenderers and can
    be used as the basis for the contractual obligations of the winning tier 1 contractor(s) responsible for
    project delivery.

Part B to be completed by the winning tenderer must be registered with DEEDI within 14 days of the
awarding of the contract.

It is the responsibility of project proponents to ensure that the requirement to implement the LIPP and report
on LIPP outcomes applies to, and is incorporated in, all contracting arrangements for the project, including
any subcontracted elements.

The flow of information and obligations relating to eligible projects and providing a LIPP Outcome Report is
shown in Diagram 1 using the example of a building project.

It is also the responsibility of project proponents to ensure they comply with Queensland Government’s
Structured Training Policy and Indigenous Employment Policy (see section 7 of the LIP Guidelines and A.6
of this LIPP template).


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LIPP guidance
Any queries in relation to the LIP or guidelines should be directed to:

The Project Manager
Local Industry Policy
Office of Advanced Manufacturing
Department of Employment, Economic Development and Innovation
T +61 7 3224 8618
M +61 (0)409 499 428
Email: lip@deedi.qld.gov.au

Copies of the Guidelines, the LIP, LIPP and reporting templates are available at www.industry.qld.gov.au

A copy of the QIPP Act is available at www.legislation.qld.gov.au




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Part A: Local Industry Participation Plan – preparation for
tender documentation
The following sections should be completed by the project proponent or nominated agent in preparation for
the tender process.


A.1      Project Summary
Eligible Project title:                                     Title

Please provide name for the project you intend to use
on the tender documentation.
Project Proponent:                                          Project Proponent’s name

Project proponent is defined in the Guidelines
Estimated total capital value of the eligible               $.....
project:

This should be the value indicated in the State Budget,
Initial Advice Statement, or any other public statement.
Intended date for the release of EOI and/or
tender documentation:                                       EOI: Day Month Year

                                                            Tender: Day Month Year

Please indicate the intended weighting for                  Weighting:……
assessment of local content for tender
evaluation criteria:

The LIP requires that eligible projects put out to tender
are required to have local content as one of the
general tender evaluation criteria.

It is a matter for project proponents’ procurement
policies whether or not the weighting is published with
the tender documentation.

The Queensland Government Chief Procurement
Office Better Purchasing Guide – Evaluating Offers in
Purchasing provides guidance in relation to weightings
in offer evaluation processes and methods.

Web Link:
www.qgm.qld.gov.au/02_policy/complete_series.htm




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Project description / Scope

If you have already prepared a general description of the scope of the eligible project for the tender
documentation or Initial Advice Statement please insert the description here.




Local Industry participation policy statement for the tender documentation

This is intended to be a short statement to be included in the tender documentation indicating to tenderers
your overall expectations for the eligible project in meeting the objectives of the LIP and the respondents’
responsibilities in assisting you meet your obligations under the LIP. The policy statement should take into
account the particular nature of the project, how the project is to be delivered, the requirements and
objectives of the LIP.

Examples of policy statements which have been included as a clause in the tender documentation may include:

“Local Industry Participation (LIPP)
This project is subject to the Queensland Government’s Local Industry Policy. In complying with this policy, the
Managing Contractor is required to provide full, fair, and reasonable opportunity to local suppliers and specialist sub-
contractors when tendering the various trade packages for the provision of materials, equipment, and/or services for the
project.
The Managing Contractor shall release details of work actually sourced from South-East Queensland, Regional
Queensland, other Australian States and Territories, and overseas, separately. The value of work shall include goods
supplied, manufactured, and the services provided. These details shall be presented monthly as an integral part of the
Managing Contractor’s monthly progress report.
A Local Industry Participation Plan (LIPP) will be prepared and attached to this document. The Managing Contractor and
their supply chain are required to fulfil all the requirements of this plan. The Managing Contractor is encouraged to utilise
the resources of the Industry Capability Network Queensland (ICN) to meet the requirements of Plan including the
required reporting. “

and

“This project is subject to the Queensland Government's Local Industry Policy. The Contractor is required to provide full,
fair and reasonable opportunity to local suppliers and specialist subcontractors when tendering the provision of
equipment or services supplied. During the project, the Contractor shall report on the value and source (regional
Queensland, Queensland, Australia and otherwise) of the work. This includes services provided as well as goods
procured or manufactured.
The Queensland Government has an arrangement with the Industry Capability Network Queensland (ICN) to assist
contractors in meeting the goals and reporting arrangements required by the policy.”


Insert proposed LIP policy statement




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A.2     Local Industry Contestability Assessment
A key factor in maximising local industry participation to achieve the objectives of the LIP is the contestability
between local industry and suppliers from elsewhere for project opportunities. The LIPP should 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.

The LIP Guidelines require that project proponents must consult with ICN Queensland at the pre-
tender stage, prior to the preparation of the LIPP, to collaboratively carry out a contestability
assessment for an eligible project to identify contestable goods and services.

ICN Queensland will issue a unique identification number to project proponents following consultation which
must be included in the LIPP prior to registration with DEEDI.

The consultation will assist project proponents develop expectations in relation to local industry participation
in the project in A.4 below.
Has ICN Queensland been consulted in relation to Local Industry capability against contestable
goods and services?
        Yes              No                          ICN consultation           Insert the ID number provided
                                                     Number:                    by ICN
If ICN Queensland has not been consulted, please provide an explanation
Explanation

Please list the potential goods and services for the eligible project. During consultation, ICN
Queensland will assist project proponents by providing advice and information on contestable
goods and services by reviewing local industry capability in relation to the potential inputs for the
project.

There will be circumstances where a firm’s full time equivalent employee numbers will fluctuate.
Project proponents should take a balanced view in addressing the definition of local industry in the
LIP Guidelines.

Imported Goods & Services          Contestable Goods &                 Always Local Goods & Services
                                   Services
Name of the goods or services      Name of the goods or services       Name of the goods or services which
which may be considered for        which may be considered for         may be considered for tender
tender                             tender




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A.3     Scope of ICN Services
The LIP outlines additional fully subsidised services offered by ICN Queensland to assist project proponents
provide full, fair and reasonable opportunity for local industry to tender on the project.

These services are designed to assist project proponents meet the LIP and/or Environmental Impact
Statement obligations and minimise the compliance burden on the project. Please indicate how you intend
to use ICN Queensland services by ticking the appropriate box.

These services are in addition to the mandatory requirement in A.2.
(a) Assistance with LIPP preparation                                                 Yes            No

(b) Use ICN Gateway for local industry registration against project opportunities    Yes            No
    at: www.icnqld.org.au/register.html
(c) Use ICN Queensland for local industry capability searches against project        Yes            No
    opportunities to assist with details of companies that might be asked to pre-
    qualify or tender for the project.

(d) Use ICN Queensland to organise or participate in information sessions for        Yes            No
    local industry on project pre-qualification requirements and opportunities

(e) Ensure that contractors and sub-contractors use ICN Queensland’s fully           Yes            No
    subsidised services, including local industry registration for contractor
    opportunities
Please provide the contact details of your ICN Queensland client manager:

Please insert ICN Queensland client manager’s details here




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A.4      Expectations of Local Industry inputs for the eligible project
The LIP requires that the LIPP should address in quantifiable and qualitative terms the economic benefits to
Queensland arising from activities proposed in the plan and address how the proposed project will actively
support the key criteria.

The following example is provided to give guidance to project proponents and their tender evaluation
personnel or committees. It outlines how appropriate consideration of the LIP key criteria might be included
within overall tender evaluation in order to meet the LIP’s objectives and obligations. The information may
then be used as a basis for scoring tender responses against the proposed weighting to be applied under
A.1.

The most appropriate time in the project delivery cycle to consider these evaluation criteria is at the time the
project delivery methodology is being considered.


A4.1 Opportunities for participation by local industry
Estimates of opportunities for Queensland local                  Estimated opportunities for Queensland local
industry participation compared to other ANZ and                 industry participation
participation from elsewhere                                       High             Medium        Low
Given the nature of the project, and information obtained from    #                #                 #
ICN Queensland on local Industry capability against the
projected work packages, what is your expectation about the
involvement of local industry?                                   Estimated opportunities for ANZ local industry
                                                                 (other than Queensland) participation
You may wish to express the expectation as a dollar value or
percentage range.                                                 High           Medium           Low

Range                                                             #                #                 #
0 -25% Low
26- 70% Medium
71 – 100% High                                                   Estimated opportunities for non-local participation
                                                                  High           Medium            Low
Comparisons with previous projects and procurement of a
similar nature, as well as consultation with ICN Queensland       #                #                 #
and industry impact assessments in relation to your planning
for significant purchases under the State Procurement Policy
will assist in formulating assessments about the level of
opportunities for local industry participation.

For the purposes of local content, project proponents should
satisfy themselves that the source of goods and services is
from value-added activities by local industry. Use of ICN
Queensland services will assist in minimising sourcing issues.

Estimates of opportunities for participation by local            Estimated opportunities for participation by local
industry from regional Queensland                                industry located in regional Queensland. Is it:
                                                                   High            Medium           Low
Given the nature of the project, and information obtained from
ICN Queensland on local industry capability for the projected     #                #                 #
goods and services, what is your expectation about the
involvement of local industry from regional Queensland?
Consideration should also be given to the location of the
eligible project.
You may wish to express the expectation as a dollar value or
percentage range.

Expectations of how opportunities for participation by Queensland local industry might be maximised

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Here you should consider the ways you might expect tenderers to provide full, fair and reasonable opportunity for local
industry participation through the supply chain for the project.

Please describe your answers. You should consider the following:
    How might opportunities be provided?
    Who do you expect to provide those opportunities?
    What do you expect the contractor or contractors responsible for delivering the project to do?
    What do you expect their sub-contractors to do?
    Where and when do you expect them to do it?
In the context of the above questions you may also need to consider issues such as:
    Are there prequalification requirements for the project?
    Is local industry aware of the pre-qualification requirements?
    Is local industry tender-ready?
    Is the project employing the use of Australian Standards and Codes?


Describe how opportunities might be maximised




A4.2 Support of Regional Development in Queensland

 (a) How will you work with contractors and sub-contractors to ensure business and industry in the region
     are afforded every opportunity to gain maximum benefit from the project?
 Text here

 (b) How will you hold public briefings which will provide timely information to the regional business and
     industry on the services, material supplies, skills, and commercial support requirements of the project
     in its planning, construction, operation, and maintenance phases?
 Text here

 (c) How will you work/cooperate with the regional economic development bodies to facilitate the
     communication of the procurement and logistics requirements for goods, services and commercial
     support for the project?
 Text here

 (d) How will you ensure that procurement requirements are advertised in local media to provide timely
     and equitable access to supply opportunities?
 Text here

 (e) How will you encourage contractors and sub-contractors to maximise the use of local business as
     sub-contractors when contracts are awarded outside the region?
 Text here


A4.3 Opportunities for local industry                          Estimate of the opportunities for value-adding by
                                                               Queensland local industry. Is it:
to value-add
                                                                High             Medium             Low
If the potential for value-added is medium or high, please      Yes                 Yes                Yes
also describe the opportunities you might expect or would
seek to encourage from the project in the context of the
                                                                No                  No                 No
value for money proposition over the whole-of-life of the
procurement.


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Please list or describe any value-adding opportunities which may increase the level of local content in the
project and outline these under the following headings:

(a) What opportunities exist for value adding?


Text here




(b) How will you work with contractors and sub-contractors to identify all supply requirements where there
    exist opportunities for local value adding?


Text here



(c) How will you use the services of ICN Queensland in relation to value-add opportunities?


Text here



A4.4 Other industry development                     Estimate of the opportunities for technology new
                                                    investment or innovation and R&D by Queensland local
opportunities                                       industry. Is it:

It is an objective of the LIP to drive technology
                                                     High             Medium            Low
transfer, research and development, innovation
and improved productivity for local industry in      Yes              Yes               Yes
Queensland, to enhance value for money.
                                                     No               No                No

Under the following headings please list or describe the potential new investment or innovation or R&D by
opportunities which may increase the level of local content in the project.


(a) How will you identify potential sectors where interstate and / or non-local contractors and sub-contractors
    might invest in infrastructure, new or existing industry, or technology research and development in
    Queensland (see Invest Queensland website below for potential opportunities)



Text here




(b) How will you examine the potential for investment to introduce new technology or capabilities in capital
    equipment to supply national and international markets

Text here




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(c) Conducting design and procurement non-locally introduces potential barriers to maximising local industry
    participation. The project may present opportunities to introduce innovative services, products or
    processes to local industry. Such opportunities may include:
   Putting in place a strategy which will ensure local industry innovation is not ‘designed out’ or inadvertently
    overlooked;
   Using the services of ICN Queensland and government agencies to identify local innovation and
    technology; and
   Proactively seeking opportunities to increase the capability of local industry through joint ventures,
    alliances, or technology licensing agreements with non-local companies.
Web link
   Trade and Investment Queensland:
    www.investqueensland.qld.gov.au/dsdweb/v4/apps/web/content.cfm?id=1582

How will you support / promote local industry development?
Text here




A4.5 Development of an internationally competitive local industry

It is an objective of the LIP to develop local industry’s long-term international competitiveness, and flexibility
in responding to changing global markets, by giving local industry a fair opportunity to compete against
foreign suppliers of goods and services.

The LIP provides that an element of providing full, fair and reasonable opportunity to local industry includes
ensuring assistance is provided to become internationally competitive - to be ready to take advantage of
opportunities to participate in global supply chains for local and international projects. The LIP also indicates
that there is also a responsibility on local suppliers to take steps to ensure that they are achieving best
practice and pursue international competitiveness.

Please list or describe the actions you intend to take to develop local industry’s long-term international
competitiveness, and flexibility in responding to changing global markets. You might also wish to consider
how you might use DEEDI manufacturing and business support programs (including those subsidised
programs through OAM, QMI Solutions and ICN Queensland) to provide Queensland local industry with an
understanding and opportunity to develop the capabilities needed to be tender-ready for your project.

Under the following headings outline how these issues will be addressed in the context of this project.
Include directions for future project management and contractors to commit to this criterion.
(a) Ensuring that local industry is provided with information in an equitable and timely manner

Text here



(b) Appropriate design and procurement strategies to provide equitable access for local industry. This should
    include consideration of how to provide local industry with the opportunity to supply under the same
    terms, standards and conditions as existing supply chain partners; direct and indirect cost factors such as
    reliability, maintainability, servicing and procurement administration costs including performance
    measurement, reporting and feedback mechanisms; and how you might assist local industry in relation to
    pre-qualification requirements.
Text here



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(c) Identifying potential imported equipment, components and services so as to permit full, fair and
    reasonable opportunity for local industry to participate in competitive supply to replace these imports

Text here




(d) Identifying specific opportunities for local industry to value add to imports which cannot be competitively
    supplied from local industry

Text here



(e) Seeking opportunities for value-added export of locally produced goods, equipment, services or
    technologies either directly or indirectly related to the project


Text here




(f) Seeking opportunities to establish long-term supply chain alliances between local industry, and suppliers
    and contractors from elsewhere where ever you are able


Text here




(g) Seeking opportunities for the transfer of technologies intended for the project into capable local industry
    and support the processes to establish technology alliances between local industry and technology
    providers from elsewhere

Text here




(h) Encourage potential project managers, contractors and sub-contractors to support the above activities in
    all tender documentation by means of declaration of active support for implementing theLIP in tender
    documents.


Text here




A.4.6 Employment, training and skills development opportunities
One of the key criteria of the LIP to achieve the objectives is how the project will actively support
employment, training and skills development. The engagement of local suppliers in projects with high skill or
technology requirements can have significant economic benefits in the form of building local industry
capability and boosting the skills and knowledge of the workforce.

Outline how these employment, training and skills development will be addressed in the context of
this project.

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(a) Identifying the skills required in the building, construction, equipment and services fabrication and
    supply, maintenance, operation and support to the project, for its design, construction, operation and
    maintenance phases
Text here

(b) Arranging timely training and qualification arrangements to meet the needs of skills development to
    support all phases of the project
Text here

(c) Ensuring that training and qualification systems meet the requirements of the National Standards
    Framework
Text here

(d) Maximising the use of local employment to support all phases of the project
Text here




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Part B: Schedules for tender responses from Contractors
This section should be completed by all contractors tendering for the opportunity to provide goods and/or services to the eligible project.



Schedule 1: Expectations of Local Industry inputs for the eligible project

Outline how you intend to support the project proponent in their commitments to LIP by outlining your response on how you intend to meet the LIPP requirements
outlined by the project proponent in section A4 of the LIPP:


A4.1 Opportunities for participation by Queensland local industry


Text here


A4.2 Expectations for support of regional development in Queensland


Text here


A4.3 Expectations in relation to opportunity for local industry value-added


Text here


A4.4 Expectations in relation to other industry development activities, such as new investment, innovation and research and development.


Text here


A4.5 Expectations for developing an internationally competitive local industry


Text here


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A4.6 Employment, training and skills development opportunities


Text here




Schedule 2 : Detail of Overall Total Project Inputs
Description of Goods or        Local Suppliers Business    Local Suppliers   Location of      Expected Total        Expected Local Value Add
Services Supplied              Name                        Postcode          Manufacture of   Contract Value        (as a $ or % value of total
                                                                             Goods or                               contract value)
                                                                                              A$
                                                                             Services
                                                                                                                    A$
Eg. Crane Supply and Install   Supplier CH1                4011              non-local
                                                                                              1,500,000             500,000 (30%)
Service A
Eg. Crane Supply and Install   Supplier CH2                4012              Brisbane
                                                                                              1,500,000             1,500,000 (100%)
Service B

Eg. Landscaping                Supplier L1                 4069              Brisbane         1,000,000             990,000 (99%)

Eg. Structural Steel A         Supplier SS1                4015              Brisbane         3,000,000             1,200,000 (40%)

Eg. Structural Steel B         Supplier SS2                4070              Brisbane         3,000,000             2,900,000 (97%)

Eg. Electrical Services        Subcontractor 1             4016              Brisbane         7,500,000             5,000,000 (67%)




Add more rows if required




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Attachment 1: Project Proponent’s - Contractor Tender Evaluation Plan (Optional)

Tender Assessment Matrix

This tender assessment matrix is provided as guidance for project proponents on how to assess tenders against the expectations outlined in A.4.
The criteria and ratings used below should be regarded as guides only. Project proponents may develop their own criteria and scoring methods for assessing tender
responses’ compliance with the LIP, provided they are consistent with the LIP.
This matrix may also be used as a self-assessment tool to assess this LIPP. DEEDI will use the LIP and Guidelines and this as a guide to assess draft LIPPs at the
time they are submitted for advice.

Score         Grade                  Interpretation for Assessment

                                     Does not meet specified requirements.
                      Unacceptable




                                      The proposal does not address the criterion.
1                                     Totally deficient and non-compliant.
                                      The proposal demonstrates a limited understanding of the criteria, or demonstrates that the respondent can provide very limited capability.
                                      Very limited achievement of the requirements specified in the documentation, for these criteria.
                                      Existence of numerous errors, risks, weaknesses or omissions which are difficult to correct/overcome in order to make the proposal acceptable.
                                     Does not meet all specified requirements.
                                      Project outcomes are achievable but some significant weaknesses and/or deficiencies exist that require some significant additional effort to
                      Marginal




2                                      rectify.
                                      The proposal demonstrates a less than satisfactory understanding of the criterion, or demonstrates that the respondent can provide less than
                                       satisfactory capability.
                                      Minimal achievement of the requirements specified in the documentation, for those criteria.
                                      Some errors, risks, weaknesses or omissions which are possible to correct/overcome in order to make acceptable.
                                     This is the default performance level expected of all proposals. The service provided meets specified requirements as defined in the RFP. There are
                   Acceptable /




                                     no significant weaknesses or deficiencies that warrant a lower grading, neither are there any additional qualities that warrant a higher grading.
                      Good




3
                                      The proposal demonstrates a satisfactory understanding of the criteria, or demonstrates that the respondent can provide satisfactory capability.
                                      Reasonable achievement of the requirements specified in the documentation, for those criteria.
                                      Some errors, risks, weaknesses or omissions which can be corrected/overcome with minimal effort.

                                     Exceeds specified requirements, such that the proposal provides the project proponent with some extra value for money.
                      Very Good




4                                     The proposal demonstrates a very good understanding of the criteria, or demonstrates that the respondent can provide a high level of capability.
                                      Sound achievement of the requirements specified in the documentation, for those criteria.
                                      Some minor errors, risks, weaknesses or omissions which may be acceptable as offered.




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Score          Grade                      Interpretation for Assessment

                                          Significantly exceeds specified requirements, such that the proposal provides the project proponent with considerable extra value for money




                       Excellent
5                                         or superior project outcomes.
                                           The proposal demonstrates an excellent understanding of the criterion, or demonstrates that the respondent can provide outstanding capability.
                                           Full achievement of the requirements specified in the documentation, for those criteria.
                                           Demonstrated strengths, no errors, risks, weaknesses or omissions.



Referring to the above table apply the Score / Grade / Interpretation Evaluation criteria to the following scoring matrix to determine the appropriateness of the
information you have provided in this LIP Plan.

Plan Section                       Section Title                                                                                                Range                     Score

                                   Opportunities for participation by local industry
A4.1                               If local content > 70% Score 5, If local content < 25% score 1                                               1–5


A4.2                               Support of regional development in Queensland                                                                1–5

A4.3                               Promotion of value-added activity                                                                            1–5

A4.4                               Support for other industry development activities                                                            1–5

A4.5                               Development of long term internationally competitive local industry                                          1–5

A4.6                               Employment, training and skills development                                                                  1-5

                                                                                                                                                Score =




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                                                                             Local Industry Participation plan template

To assist tender assessors in evaluation and scoring the following may be of assistance. A key element of the
LIP is the clear statement by the Queensland Government of the expectation that capable and competitive local
industry will be given full, fair and reasonable opportunity in applicable projects. The purpose of the LIPP is to
articulate clearly how that will be achieved and measured. The LIP nominates six key criteria that should be
considered in the development of a LIPP.

A4.1 Opportunities for Participation by Local Industry
The bidders and suppliers should work with contractors and sub-contractors to develop procurement strategies
that will involve SMEs. This could be achieved by:
a) ensuring at the tender preparation stage that tenders are packaged in a manner that optimises local industry
    opportunities without compromising project competitiveness
b) ensuring as far as practicable, contract packages are prepared having regard to the capabilities of
    Queensland industry to bid on all or part of the work
c) using the services of ICN Queensland and government to establish joint ventures between capable SMEs
d) giving full, fair and reasonable consideration to local joint ventures who bid on tender packages
e) providing feedback on the competitive performance of SMEs, directly to local participants in the supply chain,
    and where appropriate to ICN Queensland and to government.

A4.2 Support for Regional Development
The delivery of some projects may by their nature bring substantial benefits to a regional area. However, bidders
should work with contractors and sub-contractors to ensure business and industry in the region are afforded
every opportunity to gain maximum benefit from the project. To achieve this the bidder could consider:
a) holding a public briefing which will provide timely information to the regional business and industry on the
    services, material supplies, skills, and commercial support requirements of the project in its planning,
    construction, operation, and maintenance phases
b) cooperating with the regional economic development bodies to facilitate the communication of the
    procurement and logistics requirements for goods, services, and commercial support between the project
    contractors suppliers
c) ensuring that procurement requirements are advertised in local media to provide timely and equitable
    access to supply opportunities
d) encouraging contractors and sub-contractors to maximise the use of local business as sub-contractors when
    contracts are awarded outside the region.

A4.3 Promotion of Value-Added Activity
The bidder should recognise the benefits to industry development, skills development, and innovation of using
local suppliers. Bidders should seek to maximise value-added content in construction, fabrication, supply and
maintenance of goods, equipment and services required for the project. These activities should not compromise
project competitiveness. To support this key criterion bidders should:
a) work with contractors and sub-contractors to identify all supply requirements where there exists
    opportunities for local value adding; and
b) use the services of ICN Queensland to provide information on the capabilities of local industry to add value
    to the project requirements.

A4.4 Support for Other Industry Development Activities, Such as New Investment, Innovation and
     Research and Development
In addition to the investment value the project brings to Queensland, there may be opportunities either directly
or indirectly in the project that lead to investment in Queensland. These could include:
a) identification of potential sectors where non-local contractors and sub-contractors might invest in
     infrastructure, new or existing industry, or technology research and development in Queensland
b) examination of the potential for investment to introduce new technology or capabilities in capital equipment
     to supply national and international markets.

Conducting design and non-local procurement introduces potential barriers to maximising local industry
participation. The project may present opportunities to introduce innovative services, products or processes to
local industry. Such opportunities may include:
a) putting in place a strategy which will ensure local industry innovation is not ‘designed out’ or inadvertently
    overlooked
b) using the services of ICN Queensland and government technology diffusion agencies to identify local
    innovation and technology
c) pro-actively seeking opportunities to increase the capability of local industry through joint ventures, alliances,
    or technology licensing agreements with non-local companies.




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                                                                             Local Industry Participation plan template

A4.5 Development of Long Term, Internationally Competitive Local Manufacturing and services
    Industry Sector in Queensland and Australia
In order for bidders to maximise local content they should consider the following activities:
a) identification of potential imported equipment, components and services so as to permit full, fair and
    reasonable opportunity for local industry to participate in competitive supply to replace these imports
b) identification of specific opportunities for local industry to value add to imports which cannot be competitively
    supplied from local industry
c) seek opportunities for value-added export of locally produced goods, equipment, services or technologies
    either directly or indirectly related to the project
d) seek opportunities to establish long-term supply chain alliances between local companies, and non-local
    suppliers and contractors
e) seek opportunities for the transfer of non-local technologies intended for the project into capable local
    companies and support the processes to establish technology alliances between non-local and local
    companies
f) use the services of the ICN Queensland within the project management, and support the use of ICN
    Queensland by contractors and sub-contractors
g) encourage contractors and sub-contractors to support the above activities in all tenders.

A4.6 Employment, Training and Skills Development
Within the project, bidders should seek to establish opportunities that encourage employment, training and skills
development by:
a) identifying the skills required in the building, construction, equipment and services fabrication and supply,
    maintenance, operation and support to the project, for its design, construction, operation and maintenance
    phases
b) arranging timely training and qualification arrangements to meet the needs of skills development to support
    all phases of the project
c) ensuring that training and qualification systems meet the requirements of the National Standards
    Framework
d) maximising the use of local employment to support all phases of the project.




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