1. Strategic Framework

2. About Usus South Australia introduced an Industry Participation Policy (IPP) in July 2012 to ensure local businesses share in the economic benefits from major projects and to capitalise on the potential of our mining, energy, defence and manufacturing sectors. The Industry Participation Advocate (IPA) was established in February 2013, to help local business leverage maximum opportunities from the nearly $4 billion of annual procurement spending in goods and services as well as from the State Government’s portfolio of infrastructure projects. The Office of the Industry Advocate (OIA) supports the IPA and is a small, nimble and independent unit with strong links to industry and a track record for innovative policy reform and industry engagement. The IPA develops and implements reforms aimed at generating more local jobs, suppliers and investment from the government’s buying and contracting activities. The IPA is also focussed on achieving a greater involvement of small to medium enterprises (SMEs) in government procurement and helping more local businesses become tender ready.

3. Build capacity of local businesses to successfully tender for Government contracts Policy and practices that remove impediments and support local participation Procurement reforms that provide greater economic benefit to the State and local businesses Our Objectives

4. Policy Procurement practices Accountability & oversight Capacity & culture Capacity & readiness Leveraging expertise Tendering skills Industry Raise awareness within Government agencies of what local businesses have to offer Create opportunities for innovation Recognise and reward economic contribution to the State’s economy Build the capacity of local businesses Strategic Framework Engagement & advice Government

5. Advocating for: SA Government’s procurement activities to be a lever for growing the state’s economy Greater involvement of local businesses in SA Government contracts Procurement efficiencies that represent cost savings for both government and businesses The adoption of IPA policy objectives in grant and other funding arrangements Further procurement reforms to support the IPA’s objectives Building awareness by: Promoting the capacity of local businesses to meet Government procurement and Prime Contractor’s needs Expanding the Meet the Buyer program to include regions and greater engagement with businesses after the event Improving the ICN Gateway and ensuring it is better utilised Promoting SA Government’s new Small Business Charter and regional initiatives Creating opportunities by: Revising what constitutes “value for money” in procurement Improving capacity of local businesses through the Connecting with Business program Working with agencies early in the procurement process to ensure tenders provide opportunities for local businesses Promoting the adoption of performance based tendering Unbundling large contracts where this creates greater opportunities for local businesses Initiating change by: Revising procurement practices to ensure agencies can deliver on IPA objectives Advancing the knowledge and skill of procurement staff in conjunction with the State Procurement Board and agencies Introducing a monitoring and evaluation process across government Encouraging local government and other public institutions to adopt IPA policies Ensuring agencies are working proactively to increase the number of local businesses involved in government contracts Achieving greater economic benefit to the State from Government spending How we will deliver on our objectives

6. Cabinet Premier, Treasurer & Key Ministers Chiefs of Staff and Ministerial Advisors State Procurement Board State Coordinator General Crown Solicitor’s Office Small Business Commissioner ICN SMC & Agency CEs APUs & Senior Procurement Staff Agency staff with purchasing or decision making authority Economic Development Board Small Business Council Peak Industry Bodies Industry Associations Unions Key Industry Leaders OIA Industry Advisory Panels Local Businesses OIA Key Stakeholders

7. directly linked to the delivery of contracts on behalf of the South Australian Government* SUPPLY INPUTS Value of goods and supplies sourced from South Australian businesses EMPLOYMENT Number of South Australian jobs INVESTMENT Amount of new capital expenditure in South Australia INDUSTRY PARTICIPATION SCORECARD *all areas of Government expenditure, by both the “public authorities” made or declared and the “prescribed public authorities” declared under the State Procurement Act 2004 and accompanying regulations, above $22,000 for the following activities: Government of South Australia procurement of goods and services including infrastructure and construction; Public Private Partnership projects; Federally-funded infrastructure and construction projects managed by the Government of South Australia and private sector projects receiving significant Government of South Australia support, (over $2.5 million cash and in-kind).

8. Industry Participation Advocate Director, Office of the Industry Advocate General Manager, Procurement Reform Industry Participation Consultant / Business Manager Industry Participation Consultant Executive Officer Trainee Meet the Buyer Coordinator Organisational Chart March 2015

9. 2015 Business Plan

10. 1 st Quarter: Jan - Mar 2015 Key ObjectiveActionsWhoStatus 1.1Build capacity of local businesses to tender for and win Government work Expand the Meet the Buyer Program to include regions and better follow up after the events Establish and implement Connecting with Business workshops Promote the Tender Ready handbook to businesses OIA, Agencies OIA Completed 1.2Policy and practices that remove impediments and support local participation Review implementation of limitation of liability reforms and recommend changes to Cabinet regarding new approaches to risk and liability in key areas of purchasing In collaboration with the Small Business Commissioner, review the Government’s role in oversighting contractor-subcontractor arrangements on Government projects Provide a single point of contact for each agency to allow easier entry for smaller organisations into government procurement All agencies to forecast procurement and purchasing opportunities on sa.gov.au OIA, SPB, DTF & Crown OIA, SBC, Crown, DPTI OIA, Agencies OIA, SPB, Agencies 80% complete 50% complete 80% complete Completed

11. 1 st Quarter: Jan - Mar 2015 Key ObjectiveActionsWhoStatus 1.3Procurement reforms that provide greater economic benefit to the State and local businesses Work closely with DPTI on major project tenders to ensure outcomes support greater economic benefit to the state through local participation Develop a discussion paper for the Economic Development Board on achieving greater ‘value for money’ through Government purchasing Roll out revised Industry Participation Policy Guidelines and templates across Government, including briefing all executives, APUs, senior procurement staff and Ministers’ Chiefs of Staff Develop and implement accountability measures for agencies including reporting against key criteria and reflecting accountability for implementing industry participation policy objectives and associated KPIs in Chief Executive’s Performance Agreements with the Premier Industry is consulted regularly to ensure OIA objectives are relevant and current including regular industry briefings, utilising Advisory Panels to review new policies and guidelines Work with DPC to build industry participation considerations into new Cabinet processes OIA, DPTI OIA OIA, Agencies, Chiefs of Staff OIA, SPB, CEs, Premier OIA, Advisory Panels DPC, OIA 80% complete Completed 80% complete Completed Ongoing Completed

12. 2 nd Quarter: Apr – Jun 2015 Key ObjectiveActionsWhoStatus 2.1Build capacity of local businesses to tender for and win Government work Develop a tailored business engagement workshop to complement the Meet the Buyer program and provide targeted support for identified businesses Investigate options for TAFE to develop and run a tendering education program Work with OneSteel/Arrium to develop a submission to the Anti-Dumping Commission Match local SMEs with supply chains of major projects and assist businesses to form joint ventures or consortiums to take advantage of opportunities on major projects OIA OIA, TAFE OIA, Crown, OneSteel/Arrium OIA 20% complete 2.2Policy and practices that remove impediments and support local participation Establish a process for identifying and unbundling contracts Investigate adoption of IPP principles into grant and other funding arrangements Work with State Procurement Board to develop Industry Participation modules for procurement training courses Develop and provide agencies with online training modules for induction and training of staff in industry participation requirements OIA, DPTI, Agencies OIA, Agencies OIA, SPB OIA, TAFE, Agencies 30% complete

13. 2 nd Quarter: Apr – Jun 2015 Key ObjectiveActionsWhoStatus 2.3Procurement reforms that provide greater economic benefit to the State and local businesses Work closely with DPTI, including embedding an OIA Consultant on project teams, on major projects to ensure industry participation commitments are being met Work directly with Walker Corporation on the Festival Plaza redevelopment to ensure industry participation principles are established and met as part of the project Consult with government and industry on value for money paper to identify key issues, including presenting paper to Small Business Council Hold an forum to develop industry focussed solutions to issues identified during consultation on value for money paper Make recommendations to Chief Executives and/or Cabinet based on solutions identified at the forum Develop a Monitoring and Evaluation Framework to ensure key outcomes are being met Brief Chiefs of Staff on new Cabinet processes aimed at ensuring early engagement with the OIA on projects and procurements with industry participation opportunities OIA, DPTI OIA, Treasurer, Renewal SA OIA, Agencies, SBC, Advisory Panels, Industry Leaders, OIA, Industry Leaders OIA, CEs, Cabinet OIA, Agencies OIA, Chiefs of Staff 20% complete 40% complete 70% complete

14. 3 rd Quarter: Jul - Sep 2015 Key ObjectiveActionsWhoStatus 3.1Build capacity of local businesses to tender for and win Government work Investigate improvements / options to replace ICN database Work with TAFE and industry associations to implement a new tender education program Implement new tailored business engagement program Review OIA’s Meet the Buyer and Connecting with Business programs and recommend changes for the 2016 program OIA, ICN OIA, TAFE, Industry Associations OIA OIA, Advisory Panels 3.2Policy and practices that remove impediments and support local participation Review IPPs assessed in first half of 2015 and identify unnecessary impediments in acquisition plans and key tender documents. Make recommendations to CEs and/or Cabinet where necessary. Review the process used by OIA to review and assess contracts post-award to determine how well IP Plans have been applied by Prime Contractors Collaborate with local universities to develop a business case for Cabinet on a greater role for performance based tendering in Government procurement OIA, CEs, Cabinet OIA OIA, Cabinet

15. 3 rd Quarter: Jul - Sep 2015 Key ObjectiveActionsWhoStatus 3.3Procurement reforms that provide greater economic benefit to the State and local businesses Investigate ways in which the IPP and other OIA initiatives can support the development of local Aboriginal enterprises Review first industry participation data collection and develop Industry Participation Scorecard report for Cabinet Develop recommendations for Premier on KPIs for next round of Chief Executive Performance Agreements Implement Monitoring and Evaluation Framework Engage with Local Government and other relevant authorities to encourage adoption of OIA policy objectives OIA, AARD OIA, SPB, Agencies, Cabinet OIA, DPC, Premier OIA, SPB OIA, LGA, Councils40% complete

16. 4 th Quarter: Oct - Dec 2015 Key ObjectiveActionsWhoStatus 4.1Build capacity of local businesses to tender for and win Government work Implement new Meet the Buyer, Connecting with Business and tailored business engagement Program for 2016 Review TAFE tender education program and recommend changes if necessary OIA OIA, TAFE 4.2Policy and practices that remove impediments and support local participation Investigate application of a single identifier number for business interactions with Government Standardise and simplify contracts where possible, along similar lines to recent Commonwealth reforms Establish benchmarks/timeframes to ensure tenders are assessed and awarded more quickly Use industry standard systems where possible to make it easier to deal with suppliers OIA OIA, Agencies 4.3Procurement reforms that provide greater economic benefit to the State and local businesses Review how well early engagement with industry has occurred. Make recommendations to Chief Executives and/or Cabinet if necessary. OIA, Agencies, CEs, Cabinet