Indigenous Procurement Policy (IPP)

The purpose of the Indigenous Procurement Policy (IPP) is to leverage the Commonwealth’s annual multi-billion procurement spend to drive demand for Indigenous goods and services, stimulate Indigenous economic development and grow the Indigenous business sector.

The IPP was launched on 1 July 2015 and has three main parts:

  • A target number of contracts that need to be awarded to Indigenous businesses by 2020.
  • A mandatory set-aside for remote contracts and contracts valued between $80,000 - $200,000.
  • Minimum Indigenous participation requirements in contracts valued at or above $7.5m in certain industries.

Commonwealth milestone:12 month IPP outcomes

  • In the 2015-16 financial year, the Commonwealth Government exceeded its targets awarding 1,509 contracts, valued in total at $284.2 million to 493 Indigenous businesses.
  • This compares to Commonwealth contracts valued around $6.2 million awarded to Indigenous businesses in 2012-13. This is almost 46 times the value of Commonwealth procurements with Indigenous businesses in previous years.

Commonwealth Indigenous Procurement Target: 2015-16 financial year results

Performance against the target

  • The table below contains the number and value of Commonwealth domestic procurements awarded to Indigenous businesses from 1 July 2015 – 30 June 2016.
  • The data includes domestic contracts awarded to Indigenous businesses as reported on Austender, through portfolio sub-contracting arrangements and valued less than $10,000.
Commonwealth Indigenous Procurement Policy (IPP) Targets
First 12 Months Performance: Number and Value of Contracts
Portfolio Target
2015-16
Contracts awarded
2015-16
Total value of contracts
$ million
Defence 70 285 142
Human Services 18 254 10
Prime Minister and Cabinet 6 239 28
Treasury 19 116 35
Attorney-General's 19 91 4
Environment 14 80 4
Foreign Affairs and Trade 13 76 14
Employment 7 67 1
Agriculture and Water Resources 5 55 6
Education and Training 4 41 5
Social Services 6 36 4
Industry, Innovation and Science 15 33 15
Immigration and Border Protection 19 29 5
Finance 8 27 5
Health 12 27 4
Veterans' Affairs 4 19 1
Parliamentary Departments 4 15 1
Infrastructure and Regional Development 8 12 2
Communications and the Arts 5 7 0.1
Total Commonwealth 256 1,509 284

Performance against the mandatory set-aside

Performance against the mandatory set-aside
The total number of contracts reported on Austender in the 2015-16 financial year valued between $80,000 - $200,000 The no of contracts awarded to Indigenous businesses valued between $80,000 - $200,000
10,773 contracts 183 contracts
(142 of these contracts were awarded to businesses registered with Supply Nation)

Please note: Further information on remote contracts will be published in 2017. All queries can be directed to IndigenousProcurement@pmc.gov.au.

Mandatory minimum requirements

  • Reporting on mandatory minimum requirements of Indigenous participation became binding on contractors from 1 July 2016. Reporting on these requirements will be collated in 2017.

Upcoming IPP events to promote Indigenous businesses

  • The Commonwealth hosts a variety of events throughout the year to promote the IPP. These events:
    • connect Indigenous businesses with Commonwealth officers and
    • increase the Commonwealth’s awareness of the range of goods and services that Indigenous businesses can provide.

Dates for PM&C hosted presentations by Indigenous businesses in 2016 – 17 financial year will be advertised on this website when finalised.

List of previous events with associated presentations.

Queries

Queries on the Indigenous Procurement Policy can be sent to IndigenousProcurement@pmc.gov.au.

Further information on Indigenous Businesses

For further information on Indigenous businesses please visit the Supply Nation Indigenous Business Direct website at Supply Nation Indigenous Business Direct.

Indicative Indigenous Procurement Targets (number of contracts) by Portfolio

Three per cent of new domestic Commonwealth contracts will be awarded to Indigenous businesses in 2019 - 2020. Interim targets apply annually to drive and track performance.

Increase in 2016 - 2017 financial year portfolio procurement targets

Now in its second year, annual IPP portfolio targets for the 2016 - 2017 financial year have increased to 1.5 per cent. This increase will require the Commonwealth to award at least 769 new domestic contracts to Indigenous businesses.

Actual targets set for 2016 - 2017 to 2019 - 2020 will reflect actual contracts for the relevant three preceding years.

PM&C will be advising of new portfolio targets in the coming month.

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