Australian Government funded projects

You may need to prepare an Australian Industry Participation (AIP) plan if you are awarded Australian Government contracts, grants, payments or investments of $20 million or more. Learn about requirements.

AIP plans detail how Australian Government funding recipients will give Australian industry a full, fair and reasonable opportunity to participate in government funded projects.

AIP plans do not impact a funding recipients’ commercial decisions or mandate using Australian industry for projects. What they do is give Australian industry the opportunity to show their capabilities when funding recipients consider their project purchasing decisions.

When AIP plans apply   

You may need to prepare and use an AIP plan if you are awarded:

  • an Australian Government procurement contract of $20 million or more
  • an Australian Government grant of $20 million or more
  • an Australian Government payment of $20 million or more through a state or territory government for large infrastructure projects
  • a Clean Energy Finance Corporation or Northern Australia Infrastructure Facility investment of $20 million or more.

If you’re receiving Australian Government funding of $20 million or more for an eligible productive facility with a capital expenditure of $500 million or more, contact the Australian Industry Participation Authority to discuss your AIP requirements under the Australian Jobs Act 2013.

AIP plan contents

AIP plans require you to describe the actions you’ll take to give full, fair and reasonable opportunity to Australian industry to participate in your project. Communicating your actions openly ensures all capable Australian suppliers can bid for work throughout all stages of your project. Your plan must include:

  • Expected opportunities to supply important goods and services.
  • How you will develop an understanding of Australian industry capability before approaching the market for goods and services.
  • What strategies you will use to communicate openly and widely opportunities for Australian suppliers to supply goods and services. This includes the publicly accessible website that will host:
    • general information about your project
    • supply opportunities
    • pre-qualification requirements
    • contact details for supplier enquiries.
  • What assessment criteria you will use to assess suppliers on the same basis.
  • How you will provide feedback to unsuccessful tenderers.
  • How you will manage flow down AIP plan requirements with your contractors and sub-contractors.
  • How you will help Australian suppliers to develop their capability and integrate into global supply chains.

AIP plan requirements for government agencies

If you’re a government agency planning a tender, grant, investment or financing valued at $20 million or more, contact our department to discuss if you need an AIP plan.

If you do need an AIP plan, we will provide a link and user guide for you to start the AIP plan online using the SmartForm system.

We can also provide you model clauses to include in:

  • tender documentation
  • grant guidelines
  • funding agreements or contracts.

Once we have approved the AIP plan, you must review the funding recipients’ implementation reports to evaluate their actions against the AIP plan.

On approving implementation reports in the SmartForm system, copies will be sent to the funding recipient, the funding agency, and our department.

AIP plan requirements for tenderers, grantees and loan recipients

If you’re awarded an Australian Government procurement contract, grant or investment, you‘ll need your AIP plan in place before:

  • executing a contract or head agreement with the funding agency
  • achieving financial close.

Developing your AIP plan

  1. Your funding agency will initiate an AIP plan for you online using the SmartForm system. You will receive a link to open the plan.
  2. We will contact you and provide a copy of the AIP plan user guide to help you in completing your plan.
  3. Once you complete and submit your draft AIP plan using the SmartForm system, we will assess your plans’ actions against AIP policy requirements.
  4. If we need to provide feedback, we will do this in 10 business days.
  5. If you receive feedback, you should make any necessary changes to your draft AIP plan and resubmit using the SmartForm system. It may take multiple submissions to finalise your AIP plan.

How we approve AIP plans and publish summaries

When we approve your AIP plan, the SmartForm system will send you, the funding agency and us copies of your:

  • approved AIP plan
  • executive summary
  • implementation report calendar reminder.

We will also publish a copy of your approved AIP plan summary on this website.

Implementing your AIP plan 

Once your AIP plan is approved, you’ll need to submit an implementation report to your funding agency in the agreed timeframes. This is generally 14 months from the contract execution or financial close.

You must keep records showing how you’re implementing the actions detailed in your AIP plan. Your records should show how you’re providing competitive opportunities to Australian industry.

How to complete your implementation report

  • Activate your implementation report by opening the SmartForm link in the calendar reminder that you received when we approved your AIP plan.
  • Refer to the AIP plan user guide to help you complete the report.
  • Include evidence showing how you advertised supply opportunities on a publicly accessible website.
  • Include other evidence showing how you’re implementing your approved AIP plan. Examples can include:
    • how you distributed supplier information guides
    • how you held information sessions
    • how you offered feedback to unsuccessful tenderers
    • copies of excerpts from tender documents
    • standards for goods and services
    • pre-qualification requirements  
    • sample work packages.

Your funding agency may request more detail if:

  • your report is incomplete
  • you don’t provide sufficient evidence.

Your report may be deemed non-compliant if it doesn’t provide sufficient evidence or enough detailed information.

When your funding agency approves the report in the SmartForm system, copies will be sent to the funding recipient, the funding agency, and our department.  

For multiyear projects, you’ll need to submit annual implementation reports until project completion.

Contact us if you need help preparing your implementation report.

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