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 15 June 2016), the Commonwealth awarded 1070 contracts, valued in total at $229 million, to 284 Indigenous businesses.
  • This compares to around $6.2 million from Indigenous businesses in Commonwealth procurement in 2012-13. This is more than 37 times the value of Commonwealth procurement with Indigenous businesses in previous years.

Commonwealth Indigenous Procurement Target - Year to Date results

  • The table below contains procurement data for the first 11 months of the Indigenous Procurement Policy. 
  • It is expected that the data for the complete financial year will be ready for publication in October 2016. This will include all sub contracts and contracts less than $10,000 in value awarded to Indigenous businesses between 1 January 2016 and 30 June 2016.

Portfolio

Number of contracts (11 months)

Total Value of contracts

(11 months)

$ million

Target

2015-16

Reported

2015-16

Exceeded Target By

 

 

 

 

 

Human Services

18

251

233

 7.6

Treasury

19

130

111

 24.9

Defence

70

143

73

 91.7

Environment

14

67

53

 4.5

Prime Minister and Cabinet

6

50

44

 11.5

Attorney-General's

19

62

43

 2.2

Agriculture and Water Resources

5

35

30

 3.5

Employment

7

34

27

 0.3

Health

12

34

22

 2.7

Foreign Affairs and Trade

13

34

21

 12.2

Industry, Innovation and Science

15

35

20

 10.2

Social Services

6

26

20

 2.6

Finance

8

21

13

 3.0

Education and Training

4

15

11

 5.8

Immigration and Border Protection

19

27

8

 10.1

Veterans' Affairs

4

12

8

 0.5

Communications and the Arts

5

6

1

 0.0

Parliamentary Departments

4

4

0

 0.6

Infrastructure and Regional Development

8

7

-1

 2.0

 

 

 

 

 

Total Commonwealth

256

993

737

 195.8

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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