WAIPS requirements for businesses

Information to help your business understand the Western Australian Industry Participation Strategy (WAIPS) requirements and how to complete participation plans.

The Western Australian Industry Participation Strategy (WAIPS) provides locally based businesses with better opportunity to access and compete for Western Australian Government supply contracts. Its main focus is on small and medium sized enterprises.

The WAIPS applies to all WA Government procurement of goods, services, housing and works above a certain values. It does not apply to universities, local government procurement and proprietary software packages. 

Under the Western Australian Jobs Act 2017 and as part of WAIPS, prospective suppliers must:

  • Submit a participation plan as part of their WA Government tender.
  • Accept relevant participation plan clauses within the supply contract if awarded the contract.
  • Report on participation plan commitments and outcomes as outlined in the tender and contract.
  • Respond positively to approaches by the contracting agency and/or the Department of Jobs, Tourism, Science and Innovation in all matters relating to local industry participation.

The WA Jobs Act does not place any direct obligations on sub-contractors. However, head contractors will pass on their WAIPS participation plan obligations of ensuring that full, fair and reasonable opportunity is provided to local industry, onto sub-contractors. This could include an industry participation requirement in the head contractor’s contract with the sub-contractor.

What are participation plans

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Participation plans are written statements that prospective suppliers use to outline their commitments in terms of employment, skilling and sourcing. 

Under the WAIPS, you need to complete and submit a participation plan as part of your tender bid for WA Government contracts that are above relevant monetary thresholds. 

Participation Plans help to establish your commitment to involving local businesses if awarded a WA Government contract. These commitments will play a significant role in the evaluation of tender bids, helping to ensure WA Government spending creates more opportunities for local businesses and more jobs for Western Australians. 

The thresholds for participation plans requirements relate to the estimated contract value over the life of the contract, including possible extensions. 

Types of procurement Location in WA Contract value
Goods and services Metropolitan area $1 million and above
Goods and services Regional areas $500,000 and above
Housing and works  Metropolitan area $3 million and above
Housing and works  Regional areas $500,000 and above

For contracts below these thresholds the WA Government’s procurement policies and the WA Buy Local Policy 2022 will apply.

Depending on the value of the supply contract, you may need to prepare either a core or full participation plan (you will be advised which plan you need to complete by the procuring agency): 

  • Core participation plan: requires you to estimate workforce numbers, demonstrate how you will generate local economic benefits and demonstrate the means for provision of full, fair and reasonable opportunity to local industry. Information on engagement of subcontractors $20,000 and above is also sought.
  • Full participation plan: requires the same information as the core participation plan with more information around sub-contractor requirements and supply packages which have a threshold of $100,000 and above.
     

Participation plan assessment

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Participation plans will be used as part of the tender bid evaluation process and awarded contracted terms. 

Your participation plans will be assessed by the WA Government agency that issued the tender. 

The participation plan will be assessed on:

  • The likelihood of you achieving your planned local participation commitments.
  • If applicable, how you will offer full, fair and reasonable opportunity to local businesses (e.g. sub-contractors).
  • Your willingness to work with the Government to improve supply chain capability and develop import replacement opportunities.

Both core and full participation plans will be weighted at either 10 or 20% of the evaluation of a tender bid, at the discretion of the procuring agency.

You will be notified of your success or otherwise by the procuring agency. If unsuccessful, you  may request to be debriefed on the assessment of the offer.

How to complete a participation plan

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We have developed a step-by-step guide on how to complete each section of a participation plan for contracts with WAIPS requirements. 

Read the below documents for more information: 

Regional procurement

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Suppliers should note that agency procurements for regional requirements should include consideration of regional economic impact. This will ensure regional businesses are given full, fair and reasonable opportunity to participate in contracting and supply arrangements. 

For contracts to be delivered in regional Western Australia there are a number of additional WAIPS initiatives and actions to increase regional outcomes. These include: 

  • Local Content Advisers (LCAs) operating within each of the nine regions. 
  • Encouragement of increased regional procuring agency delegated spend. 
  • Modifications to Common Use Arrangements and agency panels to facilitate regional involvement. 
  • A more flexible application of regional price preferences with greater scrutiny of bid validity and outcomes claimed. 
  • Provision of grant assistance rounds to improve capability, capacity and competitiveness. 
  • Lower WAIPS thresholds apply to regional procurements in order to achieve greater levels of regional participation.

Reporting and compliance

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Reporting is an obligation for all WA Government supply contracts with participation plan requirements.

For contracts greater than 12 months, you are required to provide: 

  • Annual reporting on local industry participation on each anniversary of your contract award date, or at intervals otherwise agreed.
  • A Final Plan Implementation Report is due within 2 months of practical completion of the contract.

If your contract is for less than 12 months, you only need to provide the procuring agency with a Final Plan Implementation Report within 2 months of practical completion of the contract.

If the reported outcomes vary significantly from the commitments in the contract, you may be required to provide an explanation. If no valid reason can be identified, the procuring agency may determine that this represents breach of contract.

The participation plan reporting template will be provided to successful suppliers by the procuring WA Government agency. 
 

Page reviewed 22 July 2022