Frequently Asked Questions for Procuring Agencies
Australian Industry Participation Plans in Commonwealth
Government Procurement
Should my agency’s approach to market include a requirement for Australian Industry Participation
(AIP) Plans?
The AIP Plans in Commonwealth Government Procurement policy applies to Australian Government
agencies that are defined as ‘non-corporate’ Commonwealth entities under the Public Governance,
Performance and Accountability Act 2013 (PGPA Act).
While this policy does not cover ‘corporate’ Commonwealth entities under the PGPA Act, these
corporate Commonwealth entities may voluntarily apply the policy to procurement activities valued at
over $20 million.
Agencies approaching the market with tenders over $20 million should contact the Department of
Industry to discuss whether or not an AIP Plan should be applied to the approach to market. AIP Plans
will be required where the approach to market may involve the acquisition of goods and services that
can be purchased internationally and where there is potential Australian industry capability to supply
those goods and services. This will provide opportunities for Australian industry to compete for work
on major projects.
What is the Policy Objective of AIP Plans in Commonwealth Government Procurement?
Applying AIP Plans to Commonwealth Government procurement is aimed at increasing opportunities
for capable and competitive Australian and New Zealand small and medium sized enterprises (SMEs) to
participate in major Commonwealth procurement activities. AIP Plans detail how a potential supplier
will provide full, fair and reasonable opportunity to Australian industry to participate in the project
(through any subcontracting opportunities).
AIP Plans can provide a mechanism for potential suppliers to tenders to familiarise themselves with
SME capability and identify qualified suppliers and will require suppliers to look at potential new
Australian suppliers for subcontracting opportunities, rather than relying on their established supply
chains. AIP Plans can lower potential suppliers’ search costs and reduce their risk by broadening their
supply base and deepening their understanding of the market to include capable and innovative SMEs.
AIP Plans also give SMEs access to new opportunities, strategic partnerships and international supply
chains.
My agency’s approach to market is for an ICT contract, if the ICT SME Participation Procurement
Policy has been applied to the approach to market does the approach to market need to include an
AIP Plan requirement?
AIP requirements are separate to the ICT SME Participation Procurement Policy and procuring agencies
may need to include both requirements in their approaches to market. For further information,
enquiries can be sent to [email protected].
Department of Industry
Frequently Asked Questions for Procuring Agencies
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When should my agency approach the Department of Industry?
Agencies should approach the Department of Industry as early as possible when preparing to release an
approach to market for a single procurement or to establish a panel with an expected value over $20
million (including extension options). AIP Plans are not necessarily required for all approaches to
market over $20 million so it is important to approach the Department of Industry early. The
Department of Industry requires at least five days to provide a decision on whether AIP Plans will be
required.
My agency is tendering for a number of individual goods and services through a single approach to
market. None of the goods and services will cost over $20 million individually but the total contract
will exceed $20 million. Will AIP Plans be required for this approach to market?
Possibly – Not all approaches to market over $20 million will require AIP Plans. A determination is made
by the Department of Industry for each approach to market over $20 million on whether AIP Plans will
be required. The number of individual goods and services requested through an approach to market
and the value of any individual contracts that may result are not factors in this decision. Procuring
agencies are encouraged to contact the Department of Industry early in the planning phase to enquire
about AIP Plans.
How does the Department of Industry decide if AIP Plans will be required for an approach to market?
The Department of Industry considers two criteria to determine if an AIP Plan is required. This
determination will be made on a case-by-case basis. The two criteria the Department of Industry
considers are:

Are there opportunities for SMEs and, if so, will requiring an AIP Plan increase SME access to these
opportunities?

Do SMEs have the capability to supply to the project?
If it is considered that an approach to market satisfies both of these criteria, a requirement for
potential suppliers to develop an AIP Plan will need to be included in the approach to market.
What information should my agency provide to the Department of Industry to assist in determining if
AIP Plans should be required for my approach to market?
The kind of information the Department of Industry requires is covered in the Australian Industry
Participation Plans in Commonwealth Government Procurement: User Guide for Procuring Agencies (AIP
Plans: User Guide for Procuring Agencies) document which is available on the website.
Where can I find more information?
Further information on AIP Plan requirements including the AIP Plans: User Guide for Procuring
Agencies is available at www.industry.gov.au/aip. You can also contact the team at
[email protected] or call (02) 6213 6404.
Department of Industry
Frequently Asked Questions for Procuring Agencies
Version 2.1 August 2014
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