The Indigenous Procurement Policy (IPP) commenced on 1 July 2015, and applies to all non-Corporate Commonwealth entities subject to the Commonwealth Procurement Rules.
The purpose of the policy is to stimulate Indigenous entrepreneurship and business development, and to provide Indigenous Enterprises with more opportunities to participate in the economy.
An Indigenous Enterprise is any business that is 50% or more Indigenous owned.
Supply Nation maintains a list of Indigenous enterprises that meet this definition.
Note: If an enterprise states that it is an Indigenous enterprise, but is not listed with Supply Nation, the Project Officer must take steps to assure themselves that the enterprise is 50% or more Indigenous owned. Guidance on how to check this is provided for at clause 1.8.1 of the IPP document.
There are three ways in which the requirements of the IPP can be met:
Project Officers must, before making an approach to market, first look to Indigenous businesses for all contracts in remote areas regardless of value, using Supply Nation.
A remote contract is a contract where the majority (by value) of the goods and services will be delivered in a remote area:
Refer to detailed maps of the Remote Areas on PM&C’s Indigenous Procurement website.
All new domestic procurements where the estimated value of the procurement is between $80,000 and $200,000 (rules around estimating the value are set out in the CPRs).
Applies to all High Value Contracts (valued at $7.5 million and more, GST inclusive) where the Approach to Market commenced after 1 July 2015, with the MMRs becoming binding on contractors from 1 July 2016,
where more than half of the value of the contract is being spent in one or more of the following industry sectors:
The contractor must elect to meet the MMRs directly or through subcontracts.
Over the initial term of the contract (the first term of the contract before any extensions), contractors must meet the following requirements, as they determine within their Indigenous Procurement Plan at the time of tender.
1. Contract based requirement
2. Organisation based requirement
3. A component of a High Value Contract delivered in a remote area
In determining what requirement would deliver a ‘significant’ indigenous employment or supplier use outcome, the purchasing Commonwealth entity and the contractor should have regard to the size of the local Indigenous population relative to the non-Indigenous population and the nature of the contracted goods and services.
For clarity, if the Commonwealth entity and contractor agree a Remote Area supplier use or employment contractual requirement under this paragraph 4.4.1, that supplier use/employment outcome can count towards the contractor’s overall performance against the mandatory minimum requirement required under paragraph 4.4.
Note CFI: All Suite of Facilities Contract tender and contract documents address the above requirements.
Tenderers must be required by the Commonwealth entity to submit an Indigenous Participation Plan, outlining how they will comply with the IPP. Commonwealth entities must also seek information from the tenderer in relation to current Indigenous participation in the tenderer’s business.
The Indigenous Participation Plan must be included in the resultant contract. The contract manger is responsible for ensuring compliance with the Indigenous Participation Plan during the contract term. The contract must include a requirement for the contractor to report on compliance with the plan at least quarterly, which should then be used to fulfil our reporting obligations to PM&C (see below).
Commonwealth entities are required to report on IPP compliance every six months.
In addition to the contracts listed in the above table, the following contracts can be counted towards the target for Defence:
Commonwealth entities are also encouraged to report eligible contracts towards their target which are not required to be reported in AusTender. These will need to be manually reported to PM&C every six months. The contracts that will need to be manually reported to PM&C include:
Once DPA is tasked with compiling the report, DPA will approach all project teams whose projects have been identified for reporting purposes.
Report Estate Incidents including WHS / Environment
Defence Infrastructure Panel (DIP)
Search a E&IG Product / Service Online
Environment, Heritage and Estate Engineering Panel
Request Maintenance / Service
Suite of Contracts (HC/MCC/DSC/MW)
Environmental Management on the Estate
WHS Management on the Estate