Australian Industry Participation Fact Sheet 

Key Points

• Large firms may be unaware of the capabilities of Australian industry, especially small and medium sized enterprises, resulting in capable Australian companies being overlooked when contracts are awarded for major projects.
• Commonwealth, state and territory governments are signatories to the Australian Industry Participation (AIP) National Framework. The AIP National Framework encourages governments to adopt a consistent national approach to maximising Australian industry participation in major projects, in Australia and overseas.
• On 28 July 2009, the Australian Government announced $19.1 million in funding to boost Australian industry participation.
• These measures build on existing policies and programs including the Industry Capability Network, Supplier Access to Major Projects and the Enhanced Project By-law Scheme to provide companies full, fair and reasonable opportunity to compete for government tenders and major projects.
• The measures are consistent with value for money procurement principles and Australia’s international trade obligations.

Facts and Figures

Australian Industry Participation Plans ($2.5 million over four years)

• AIP Plans set out how Australian industry will be given full, fair and reasonable opportunity to supply goods and services to major projects and government tenders.
• The implementation of AIP Plans can save proponents time and money, reduce their risks by broadening their supply base, and deepen their understanding of the market.
• From 1 January 2010, tenderers for large Commonwealth procurement are required to prepare, submit and implement AIP Plans.

Supplier Advocates ($8.2 million over four years)

• Supplier Advocates will provide leadership in targeted industry sectors to champion improved industry competitiveness, effective tendering for government business and effective use of government programs.
• Supplier advocates for rail (Mr Bruce Griffiths) and steel (Mr Cyril Benjamin) have been appointed.
• The Department is continuing to consult key stakeholders, including Industry Innovation Councils, firms, unions, industry associations and government agencies to identify sectors where there are government procurement opportunities, significant industry capabilities and where a Supplier Advocate could make a difference.

Enhanced Project By-law Scheme (EPBS)

• The Government will clarify the intent of the EPBS and the Tariff Concession System, and strengthen AIP requirements for private sector investment projects that access the EPBS.
• The Government will encourage greater interaction between major project proponents and Australian businesses by ensuring AIP Plans are in place at an early stage of projects thereby increasing the opportunities for local suppliers.

Supplier Access to Major Projects (SAMP) ($8.5 million over four years)

• The Government is providing additional funding to the Industry Capability Network (ICN) to increase opportunities for Australian industry. The ICN uses procurement experts to work with project developers to identify supply opportunities for capable and competitive Australian companies.
• ICN estimates that contracts worth more than $2.4 billion that may otherwise have been contracted offshore have been won by Australian and New Zealand industry as a result of the SAMP program.

Australian Industry Participation National Framework

• The Government is working with the states and territories to revise the AIP National Framework to link government procurement more effectively with industry development, innovation and training initiatives.