Business Capability Support Program Ministerial Guidelines 2012

Automotive New Markets Initiative:

Business Capability Support Program MinisterialGuidelines 2012

I, GREG COMBET AM MP, Minister forIndustry and Innovation, issue these Guidelines for the Business Capability Support Program.

Dated:27 July2012

Minister forIndustry and Innovation

1Name of Guidelines and commencement

1.1These are the Automotive New Markets Initiative: Business Capability Support Program Ministerial Guidelines 2012.

1.2These Guidelines commence on 27 July 2012.

2Program objective

2.1The object of the Business Capability Support Program is to provideautomotivespecific business capability supportservices to Australian automotive supply chain companies.
[NOTE: Program background: TheBusiness Capability Support Program is a competitive meritbased grant program. It is one element of the Automotive New Markets Initiative under A New Car Plan for a Greener Future. The Program is intended to run for four years, commencing in 201213. It will provide one grant to a successful applicant to provide business capability support services to automotive supply chain companies.]

3Purpose of these Guidelines

3.1The purpose of these Guidelines is to establish and set out the framework for the Business Capability Support Program.
[NOTE: these Guidelines should be read in conjunction with the Commonwealth Grant Guidelines, especially in relation to procedures to be followed under relevant legislation.]

4Interpretation

4.1Unless the contrary intention appears, words and phrases defined, and grammatical forms referred to, in the Acts Interpretation Act 1901 apply mutatis mutandis to these Guidelines as if the Guidelines were an Act and as if each provision of the Guidelines were a clause of an Act.

4.2In these Guidelines, unless the contrary intention appears:

• agreement means an agreement between a recipient and the Commonwealth for grant funding under the Program in accordance with these Guidelines.
• applicant means anentity that makes an application under the Program.
• automotive companymeans a company that would be eligible to apply for the Automotive New Markets Program.
  [NOTE: eligibility requirements for the Automotive New Markets Program are set out in the Automotive New Markets Program Ministerial Guidelines 2012 which can be accessed at
• BCSP or Business Capability Support Program means the competitive meritbased grant program administered in accordance with these Guidelines.
• eligible activities, for the Program, are the activities mentioned in section8.
• eligible application means an application that meets the eligibility requirements for the BCSP.
• Goods and Services Taxor (GST) has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.
• Program means the BCSP.
• Program Delegate, for a function for the Program, means an employee of the Department appointed under section 5 by the Secretary to carry out the relevant function for the Program.
• start date means the day on which the agreement for grant funding is executed.
  [NOTE: it isintended that the grant should only relate to activities after the agreement is executed even if some matters occur before that date.]

5Program Delegate

5.1The Secretary must appoint a Program Delegate to carry out relevant functions for the Program and may appoint persons to assist the Program Delegate in carrying out those functions.

6Eligibility

6.1To be eligible to apply for a BCSP grant, an applicant mustbe able to provide automotive-specific business capability support services to assist automotive companies to develop new capabilities; improve productivity; and apply current capabilities in new ways.

6.2However, if an organisation has been named as not complying with the Equal Opportunity for Women in the Workplace Act 1999, the organisation is not eligible to apply for a BCSP grant.

7Merit criteria

7.1Each application is to be assessed against the following merit criteria:

(a)the ability of thebusiness capability support services to assist Australian automotive companies broaden their customer and product base;

(b)the capacity and capability of the applicant to undertake the delivery of business capability support services, including management capability;

(c)experience delivering similar services;

(d)evidence that the funding sought will enable activity to be carried out that is additional to what would otherwise have occurred;

(e)quality of the Business Capability Development Plan;

(f)the financial sustainability of the applicant;

(g)the projected benefits to the Australian automotive industry and the Australian economy.

7.2The Program Delegate may take into account other aspects of the proposal he or she regards as relevant when assessing applications.

8Grants under Program

Amounts

8.1One grant may be awarded to the successful applicant under the Program.

8.2The total amount of the grant made under the Program must not exceed $2.6million.

Duration

8.3A grant isto relate to expenditure incurred overa maximum of 4 years duration commencing on the start date.

Taxation

8.4Grant amounts are to be GST exclusive.

8.5If GST is payable on a grant amount, the Department may arrange to reimburse the grantee.

9Eligible activities

9.1A Business Capability Support Provider under the Program must undertakeall of the following eligible activities:

(a)identifying and rectifying gaps in individual automotive companies and the Australian automotive industry as a whole; and

(b)implementing strategies to improve the automotive industry’s competitive advantage and strategic positioning in the global industry; and

(c)developing the managerial and leadership capability of automotive companies; and

(d)developing the process and operational capability of automotive companies; and

(e)assisting automotive companies to integrate or diversify into global supply chains and nonautomotive industries.

10Eligible expenditure

10.1If it is directly related to an eligible activity, expenditure on the following may be eligible for grant funding:

(a)payments to advisers, consultants, training organisations and other service providers for business improvement and development work undertaken with automotive companies to achieve the objective of the BCSP;

(b)other costs associated with preparing relevant materials, training and other guidance in support of the objective of the BCSP;

(c)administration and overheads directly arising from the implementation of the approved Business Capability Development Plan.

10.2The BCSP may not provide retrospective funding—if a grant is offered, only expenditure on or after the start date, and on or before the completion date are eligible for grant funding.

10.3However, final audit costs, incurred within three months of the project completion date may be eligible for grant funding.

11Ineligible expenditure

11.1Expenditure to meet business expenses is not eligible for grant funding, for example:

(a)production costs including the design and manufacture of new products; and

(b)routine or seasonal marketing costs; and

(c)routine accounting costs, including the cost of audit certificates; and

(d)routine rental costs and expenses; and

(e)routine utility costs; and

(f)routine training costs; and

(g)travel expenses not directly related to BCSP activities.

12Applying for assistance

Application rounds

12.1There will be one application round for the life of the Program.

12.2An application must not be accepted after the closing date.
[NOTE: The opening of the application round is to be advertised nationally.]

13Application form

13.1An application must be in a form approved by the Program Delegate.

13.2An applicant may only submit one application.

13.3The following information is indicative of what might be sought in a typical application:

• the applicant's name, corporate information (eg address, ABN, ownership), financial status, role in providing business capability support services, and relevant capabilities;
• information about other key parties involved, including their role, contribution, capabilities, and how they will benefit;
• a detailed description of the business capability support services to be provided, including any innovation or eligible activity occurring and the locations where such innovation or activityis to occur;
• the benefits of the business capability support services in achieving the object of the BCSP;
• the economic benefits, including on assisting Australian automotive supply chain companies broaden their customer and product base, both domestically and internationally;
• business (including; research and developmentand intellectual property management) and financial plans, including: detailed costs; cash flow; timelines and milestones; and sources and amounts of investment to be provided by the applicant and other parties;
• the amount of BCSP assistance sought, the reason that assistance is required, and a proposed grant milestone payment schedule;
• information on other forms of assistance provided by, or sought from, Australian, state or territory governments relevant to the application.

13.4For an application to be valid, all applicable sections must be completed and information on the business capability support services and how they address each merit criterion should be sufficient to allow the Program Delegate to assess the application.

13.5An applicant may not make changes to the application after the closing date, but, at the discretion of the Program Delegate, an applicant may be asked to provide additional information or clarification to their original application.

14Application assessment

14.1The eligibility of an application must be determined by the Program Delegate.

14.2An applicant is to be advised in writing whether their application is eligible and to be assessed by the Program Delegate or ineligible and not to be so assessed.

14.3All eligible applications are to be assessed against the merit criteria by the Program Delegate.
[NOTE: The BCSP is a competitive meritbased grant program, therefore, meeting the eligibility and merit criteria to a high degree does not guarantee an offer of funding will be made.]

14.4The Program Delegate is to make the final decision in determining the value of a grant, which may be less than the amount originally sought by the applicant.

14.5During the assessment process, the Program Delegate may:

(a)contact any applicant in relation to their application and seek additional information to assist the assessment process;

(b)invite an applicant to discuss their application in person; and

(c)seek additional expertise in evaluating the merits of an application.

15Other assistance

15.1If the business capabilitysupport servicesreceive funding or noncash contributions by an external party, this is to be taken into consideration when determining the grant amount.

15.2If the business capability support servicesreceive other Commonwealth, State or Territory Government assistance,other than from a program with its own clawback provisions, the value of that assistancemust be deducted from any calculation to determine the value of a grant under the BCSP.

16The decision process

16.1The Program Delegate is to a make grant offer to the successful applicant taking into account:

(a)Program funds available; and

(b)whether the application can be accommodated within the Program funding for the financial years to which it relates.

16.2The Program Delegate must advise eligible applicants in writing of the outcome of the assessment of their application.

16.3A decision of the Program Delegate in relation to awarding a grant is final.

17Successful application

17.1To receive grant funds, a successful applicant must enter into a written funding agreement with the Commonwealth.

17.2The offer of a grant lapses if a funding agreement has not been entered into within 30days of the applicant being offered a grant by the Program Delegate.

18Grant agreement

18.1A grant agreementmust:

• ensure that the Program Delegate is empowered to recover grant funds if the recipient has acted in a manner contrary to these Guidelines or the objectives of the Program; and
• not be inconsistent with the law of the Commonwealth, a State or Territory or these Guidelines; and
• specify the amount of grant assistance for the business capability support services to which the application relates and the timing and method of delivery of the grant; and
• require the recipient to conduct the business capability support services to which the application relates; and
• require the recipient to exploit the outcomes of the business capability support services, including any intellectual property developed, on normal commercial terms and in a manner that will be for the benefit of the Australian automotive industry and the Australian economy; and
• require the recipient to seek and receive permission from the Program Delegate before dealing with intellectual property developed under a grant in a manner other than the manner outlined in the applicant’s grant application for the duration of the grant agreement and for two years after; and
• require the recipient to keep records relating to the conduct and management of the business capability support services; and
• provide for inspection by or on behalf of the Program Delegate of the premises where the business capability support servicesare undertaken and records relating to the conduct and management of the business capability support services; and
• require the recipient to report to the Program Delegate on the conduct and management of the business capability support services; and
• provide for variation and termination of the grant agreement; and
• require the recipient to comply with all applicable Commonwealth, State and Territory laws.
• A grant agreement may include other matters.

19Announcement of grant

19.1Details of the recipientand grant is to be published on the Department’s website, including, the value of the grant, the purpose of the grant and the grant term.

20Monitoring and site visits

20.1The grantee must, at the request of the Program Delegate, provide any relevant information on the business capability support services for the purposes of assessing progress with the business capability support services.

20.2For the purposes of assessing the progress of the business capability support services the grantee must agree to, and allow, employees of the Department to enter any site on which the business capability support servicesare being undertaken or where documents, equipment or information relating to the business capability support services are stored.

20.3Such access must be undertaken with the grantee’s consent, which must not be unreasonably withheld.

21Document retention

21.1A grantee must retain all documents and records in relation to the application and the grant agreement for a period of 7 years after the completion of the business capability support services and a grantee must provide this information to the Program Delegate if requested to do so.

22Conditions: general

22.1An applicant must comply with these Guidelines.

22.2A grantee must comply with these Guidelines, the relevant grant agreement and any relevant administrative guidelines published on the Department’s website.

22.3These Guidelines may be amended from time to time.

22.4The Program Delegate may make administrative guidelines and amend them from time to time.

23Conditions: confidentiality

23.1An application to the Program must, in its entirety, be treated as commercialinconfidence.

23.2Access to applications will be on a limited needtoknow basis unless the Department is required by law to provide such access.

23.3The Department may, during the application process and the course of the Program, consult with other Commonwealth, State and Territory agencies about an applicant’s claims.

The Department may also enlist technical, financial (including auditors), economic or industry advice from external experts, the provision of which must also be subject to stringent confidentiality provisions.
[NOTE: Any queries about the BCSPmay be directed to .]

Business Capability Support Program Ministerial Guidelines 2012

1