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.
|Total value of contracts
|Prime Minister and Cabinet||6||239||28|
|Foreign Affairs and Trade||13||76||14|
|Agriculture and Water Resources||5||55||6|
|Education and Training||4||41||5|
|Industry, Innovation and Science||15||33||15|
|Immigration and Border Protection||19||29||5|
|Infrastructure and Regional Development||8||12||2|
|Communications and the Arts||5||7||0.1|
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.
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.