Australian Government funded projects

Commonwealth Australian Industry Participation (CAIP) policy

Commonwealth AIP policy aims to leverage Australian Government spending to maximise Australian industry participation, capability and jobs. We administer it in line with the Australian Government’s Australian Industry Participation (AIP) National Framework.

It applies to Australian Government procurements, grants, investments and payments of $20 million or more.

Companies that receive these funds are responsible for meeting CAIP requirements.

Government entities that fund their projects are responsible for applying this policy.

CAIP plans

Under this policy, funding recipients may need a Commonwealth AIP plan.

A CAIP plan ensures Australian industry have:

• full, fair and reasonable opportunity to bid to supply key good and services for the project
• the opportunity to show their capabilities when the company purchases or subcontracts these goods and services.

This plan doesn’t mandate using Australian industry for projects. It just shows how you will offer these opportunities.

Full, fair and reasonable

These principles explain the policy intent in more detail:

• Full: Australian industry has the same opportunity as other global supply chain partners to participate in all aspects of an investment project. For example, by supplying design, engineering, project management, professional services or IT architecture.
• Fair: Australian industry has the same opportunity as global suppliers to compete on investment projects on an equal and transparent basis. This includes having reasonable time to tender.
• Reasonable: Tenders are free from non-market burdens that might rule out Australian industry. Their structure gives Australian industries the opportunity to participate in investment projects.

When CAIP plans apply

You may need to prepare a CAIP plan if you receive:

• 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 infrastructure projects
• a Clean Energy Finance Corporation, Northern Australia Infrastructure Facility or National Reconstruction Fund Corporation investment of $20 million or more.

You can also voluntarily complete a CAIP plan to show your commitment to enhancing local industry participation. Even if your project doesn’t meet the above criteria.

Reach out to us for help or more information.

When CAIP plans do not apply

You may not need to prepare a CAIP plan if:

• The total tender value of the grant or project (including extension options) does not exceed $20 million.
• The panel arrangement is worth $20 million or more but no single contract is worth $20 million or more.
• The grant program is worth $20 million or more but no individual grant is worth $20 million or more.
• Australian suppliers deliver all the work.
• The Australian Government procurement is only for:
  • domestic office leases
  • domestic labour hire, including training, physical filing and moving services
  • services that can only be geographically provided outside of Australia.
• The Australian Government grant is only for managing or cleaning the environment, such as a land care grant.
• The project already has obligations under a state or territory Local Industry Participation Plan (LIPP) that suits CAIP policy requirements.
• The procurement is for defence and meets Defence’s Australian Industry Capability Program requirements.

If the project has a capital expenditure of $500 million or more to establish or upgrade an eligible facility, you may need an AIP plan under the Australian Jobs Act 2013. Read more about these criteria.

Government entity responsibilities

If you’re planning a government procurement, grant, investment or payment, you should:

• notify the CAIP team of your project
• confirm if a CAIP plan applies
• initiate a CAIP plan on behalf of the funding recipient (if applicable)
• manage CAIP plan implementation (if applicable).

When to notify us

Get in touch with us early to make sure you understand your obligations and plan ahead. This will help you maximise opportunities for Australian businesses to participate in your project.

If you need the funding recipient to have a CAIP plan, you’ll need it in place before:

• executing a contract or head agreement
• achieving financial close.

We must approve the CAIP plan before you do this.

Read more about the Department of Finance’s procurement and grant connected policies.

How to work out if a CAIP plan applies

1. Contact us for a Self-Determination Form. It will help you work out if the funding recipient needs a CAIP plan. You can do this when:
   • You have identified the funding recipient.
   • You know any proposed subcontracting arrangements.
2. We’ll get back to you if we have questions or if we need more information. We’ll also confirm next steps.
3. To help you plan your project, we can provide model clauses to include in:
   • tender documentation
   • grant guidelines
   • funding agreements or contracts.

How to set up CAIP plans

1. You initiate the CAIP plan online using the SmartForm system. We give you a link and user guide to help you do this.
2. The funding recipient completes the plan.
3. We review and approve the plan.

How to manage CAIP plan implementation

You need to review the funding recipient’s implementation reports to evaluate their actions against their plans. You can do this in SmartForm.

We approve the implementation reports.

Funding recipient responsibilities

If you’re receiving funds through a government procurement, grant, investment or payment, you should:

• confirm with your government funding entity if you need a CAIP plan
• complete and submit a draft CAIP plan for approval (if applicable).
• implement your CAIP plan (if applicable) by:
• submit an implementation report
• keep detailed records.

How to complete and submit your CAIP plan

1. Your funding entity initiates your CAIP plan online using the SmartForm system. You will receive a link to open the plan.
2. We send you a CAIP plan user guide to help you complete your plan.
3. Schedule a consultation with us before sending the CAIP plan for approval. We’ll help you understand the plan’s objectives and requirements and your reporting obligations.
4. Submit your CAIP plan using SmartForms.
5. We assess your plan's actions against CAIP policy requirements. If we need to give feedback, we’ll do this in 10 business days.
6. If you receive feedback, make any necessary changes to your draft CAIP plan and resubmit using SmartForms. It may take multiple submissions to finalise your plan.

What to put in your CAIP plan

In your CAIP plan describe the actions you’ll take to give full, fair and reasonable opportunity to Australian industry to participate in your project.

Your plan must include:

• What opportunities you expect to give Australian industry on your project.
• 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 give feedback to unsuccessful tenderers.
• How you will communicate CAIP plan requirements with your contractors and sub-contractors.
• How you will help Australian suppliers develop their capability and integrate into global supply chains.

How we approve CAIP plans and publish summaries

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

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

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

How to implement your CAIP plan

You need to submit an implementation report to your funding entity in the agreed timeframes. This is generally 14 months from the contract execution or financial close. You do this in the SmartForm system.

You must keep records showing how you’re implementing the actions in your CAIP plan. Your records should show how you’re providing opportunities for Australian industry to compete for work and meeting the CAIP principles.

Examples 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.

When approved, the SmartForm system will send you, your funding entity and us copies.

Contact us if you need help preparing your implementation report.

Feedback and complaints

To give feedback for Australian government funded projects (Commonwealth AIP) email commonwealthaip@industry.gov.au.

If you have a complaint for Australian Government funded projects, clearly explain the issue and give any relevant documents. If you make a complaint in person or by phone, follow it up in writing.

We will record and investigate your complaint and give a detailed response. If you’re not satisfied with our response, you can contact the Commonwealth Ombudsman.