The Australian Government’s aim is to give Australian industry the best possible chance of winning new work – public sector and private sector, in this country and around the world.
It is especially important that local firms have the opportunity to bid for Commonwealth procurement and infrastructure contracts. After all, the Australian Government is a big customer. Since October 2008, the Australian Government has invested $77 billion to shield Australia from the global recession, 70 per cent of it in infrastructure.
Yet this is only part of the story. It is estimated that in June this year $230 billion worth of major investment projects were under way or committed in Australia, with another $464 billion on the drawing board. The value of work available internationally is many times higher than this, with the global government procurement market alone worth more than $14 trillion.
We want to see Australian manufacturing, construction and services firms participating in all of this work.
With that in mind, the Australian Government is introducing a suite of measures to ensure that local companies, especially smaller ones, get full, fair and reasonable opportunity to compete for tenders and major projects.
The first focus of these measures is on increasing awareness. That means giving Australian suppliers better information about the work available, and giving project proponents and procurement managers better information about the capabilities of Australian industry.
The second focus is on making local firms more competitive. That means improving skills, lifting productivity and increasing innovation.
Supplier Access to Major Projects
The Australian Government will provide an extra $8.5 million over four years to the Industry Capability Network (ICN) through the Supplier Access to Major Projects (SAMP) program. The money will be used to target the sectors offering the biggest opportunities and the sectors most likely to benefit from knowing more about Australian industry capabilities. Examples might include urban transport, water management, renewable energy, information and communication technology, and health services.
The ICN matches Australian companies with supply opportunities. It has offices around Australia and New Zealand and uses technical experts to address the needs of specific industries.
The ICN gives project proponents and procurement managers professional advice on Australian industry capabilities. It helps them develop tender packages and Australian Industry Participation Plans. It also helps them identify and short-list potential suppliers.
The network helps local suppliers identify and pursue project opportunities. It also links them to other government services such as Enterprise Connect.
Australian Industry Participation Plans
The Australian Government will provide $2.5 million over four years to apply the Australian Industry Participation National Framework to its own major procurement and infrastructure projects. Each of these projects will now require an Australian Industry Participation Plan setting out how those in charge will give Australian industry – particularly small and medium-sized firms – full, fair and reasonable opportunity to supply goods and services.
Australian Industry Participation Plans do not give preference to Australian suppliers, who must still demonstrate that they are competitive on timeliness, capabilities and whole-of-life-costs.
Three-quarters of surveyed project proponents using Australian Industry Participation Plans say the process improved their company’s procurement outcomes. The planning process saves proponents time and money, reduces their risks by broadening the supply base, and deepens their understanding of the market. It gives Australian suppliers access to new opportunities, strategic partnerships and international supply chains. Critically, it encourages them to analyse and extend their capabilities.
Supplier Advocates
The Australian Government will invest $8.2 million over four years to establish and support a new Supplier Advocate program. Supplier Advocates will be respected industry figures chosen for their ability to provide leadership in a specific sector.
Each Supplier Advocate will:
• promote Australian industry capabilities in the government market place;
• create industry capability teams to pursue opportunities;
• identify supply chain strengths and weaknesses and promote supply chain development;
• encourage the use of programs such as Enterprise Connect and the ICN;
• develop and publish demand forecasts;
• prepare technology roadmaps to identify innovation requirements; and
• facilitate the harmonisation of technical and testing standards across jurisdictions.
Revised Australian Industry Participation National Framework
The Australian Government will work with the States and Territories to revise the National Framework for Australian Industry Participation, with two aims in mind. The first is to simplify Australian Industry Participation Plans and make them more consistent across jurisdictions, thereby reducing costs to industry. The second is to link government procurement more effectively to industry development, innovation and training.
Tariff Concession System and Enhanced Project By-law Scheme
The Australian Government will clarify the intent of the Tariff Concession System and Enhanced Project By-law Scheme (EPBS), and strengthen Australian industry participation requirements for private sector investment projects that access the EPBS. Proponents will be encouraged to draw up Australian Industry Participation Plans early in the life of the project. This will promote interaction and increase opportunities for suppliers.
For more information on AIP initiatives, please visit www.aip.gov.au.