Indigenous Procurement Policy (IPP)

The primary purpose of the Indigenous Procurement Policy (IPP) is to stimulate the Indigenous business sector by leveraging the Commonwealth’s purchasing power to boost Indigenous businesses.

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.
  • A mandatory set-aside of contracts for Indigenous businesses to apply in certain situations.
  • Mandatory minimum requirements for Indigenous employment and Indigenous supplier use applying to certain high value Commonwealth contracts.

Milestones

  • In the first 11 months of the IPP (1 July 2015 to 31 May 2016), the Commonwealth awarded 993 contracts, valued in total at $195.8 million, to 282 Indigenous businesses.
  • This compares to only $6.2 million from Indigenous businesses in Commonwealth procurement in 2012-13. This is more than 31 times the value of Commonwealth procurement with Indigenous businesses in previous years.

  • The Government has more than tripled this year’s Indigenous procurement target of 256 contracts, and every portfolio has now met their individual target.

  • The largest Commonwealth contract valued at $9.2 million was awarded to the Fields Group by the Department of Foreign Affairs and Trade for domestic security services.
     
  • Commonwealth contracts were awarded to Indigenous businesses across a range of industry sectors. Some of these sectors included: construction, community and social services, specialist advisory and recruitment services, information technology and communications, office furniture and supplies and education and training.

Upcoming IPP events to promote Indigenous businesses

Throughout the year to promote the IPP the Commonwealth hosts a variety of events to:

  • develop and deepen an understanding of the IPP
  • connect Indigenous businesses with Commonwealth officers and corporates  and
  • increase the Commonwealth’s awareness of the range of goods and services that Indigenous businesses can provide.

June 2016 IPP events

IPP - 30 June 2016 - Department of Finance / Supply Nation’s Meet the Indigenous Supplier event

IPP - 29 June 2016 - Connecting Indigenous businesses with Commonwealth agencies

Future dates for PM&C hosted presentations by Indigenous businesses have not be scheduled for the 2016-2017 financial year.

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.

Targets for the financial years 2016 - 2017 to 2019 - 2020 (shaded) are provided as a guide and are projections only, based on AusTender data for average contracts for 2011 - 2012 to

2013 -2014.

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. In the interim please use the existing portfolio targets below as a guide.

Indicative Indigenous procurement targets by portfolio, listing target number of contracts for each financial year from 2015-16 through 2019-20

Portfolio 2015-16 (.5%) 2016-17 (1.5%) 2017-18 (2.0%) 2018-19 (2.5%) 2019-20 (3.0%) Total
Education 4 11 14 18 21 68
Veterans' Affairs 4 12 17 21 25 79
Parliamentary Departments 4 13 17 21 25 80
Communications 5 14 19 23 28 89
Agriculture 5 16 21 26 31 99
PM&C 6 19 25 31 38 119
Social Services 6 19 26 32 38 122
Employment 7 22 29 37 44 140
Infrastructure and Regional Development 8 24 32 40 48 152
Finance 8 24 32 40 48 154
Health 12 37 49 61 73 232
Foreign Affairs and Trade 13 39 52 65 78 246
Environment 14 42 56 70 84 266
Industry and Science 15 45 60 75 90 284
Human Services 18 53 70 88 106 335
Immigration and Border Protection 19 56 74 93 111 353
Treasury 19 57 76 95 114 362
Attorney-General's 19 57 76 95 115 363
Defence 70 210 280 350 420 1330
Total 256 769 1025 1282 1538 4870

 

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