The IPP is a mandatory procurement-connected policy under the legislative instrument of the Commonwealth Procurement Rules.
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.
- 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 Indigenous procurement outcomes
In the first two years since the IPP began, from 1 July 2015 to 30 June 2017, 4,880 contracts were awarded to 956 Indigenous-owned businesses with a total value of $594 million.
This cumulative figure includes $24 million in contracts awarded to Indigenous businesses in 2015–16 that was not reported until 2017.
The Indigenous Procurement Policy continued to perform well into the second year.
The Commonwealth awarded 3,291 new contracts to 723 Indigenous businesses valued at $285.5 million.
Contracts were awarded across all industry sectors.
Contracts were awarded to Indigenous-owned businesses in all states and territories.
All Commonwealth portfolios met their individual IPP targets.
|Contract count against
|Value of new contracts
|Agriculture and Water Resources||31||87||$3.4|
|Communications and the Arts||28||204||$13.7|
|Education and Training||21||100||$1.9|
|Foreign Affairs and Trade||78||116||$5.6|
|Immigration and Border Protection||111||224||$4.9|
|Industry, Innovation and Science||90||112||$22.3|
|Infrastructure and Regional Development||48||68||$3.0|
|Prime Minister and Cabinet||38||370||$32.9|
(a) - For details of how portfolios may report contracts against targets refer to the Indigenous Procurement Policy.
Commonwealth Indigenous Procurement Targets (number of contracts by portfolio)
Due to the success of the policy’s first year, IPP portfolio targets of three per cent of new domestic Commonwealth contracts for 2020 were brought forward to 2016–17.
|Portfolio||2017-18 Procurement targets (3%)|
|Infrastructure and Regional Development||48|
|Foreign Affairs and Trade||78|
|Industry and Science||90|
|Immigration and Border Protection||111|
Mandatory set aside results
Performance against the mandatory set aside is improving, but a continued focus on implementation is needed.
|IPP direct contracts valued between $80,000-$200,000 (a)||268|
|All AusTender contracts valued between $80,000-$200,000||9,652|
|% IPP with Indigenous businesses||2.8%|
|Remote contracts (b)||600|
(a) - Excludes sub-contracts.
(b) - A remote contract is one defined as a contract delivering all or some goods and/or services in a remote location as defined by the IPP explanation of remote reporting.
Mandatory minimum requirements
In 2016–17 34 contracts valued at $1.6 billion have included minimum Indigenous participation requirements (Indigenous employment or supplier use targets).
Meet the supplier events
More information is available on the SupplyNation website.
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.
IPP Policy Guides
- Indigenous Procurement Policy Overview
- Mandatory Minimum Requirements (MMR)
- The United Nations Standard Product and Services Codes (UNSPSC) for MMR
- Indigenous business
- Panel Arrangements and the Indigenous Procurement Policy
- Changes to Indigenous joint venture registration
- Department of Finance procurement information
- Supply Nation Indigenous Business Direct
- Indigenous Business Australia (IBA)
- Remote or non-remote RIPP maps (Please note that the electronic map and not the postcode/s should be used to determine the whether a location is defined as remote or non-remote)