Indigenous Procurement Policy

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.

Link to extended text version of new contracts by states for 2016-17 figure is below.

All Commonwealth portfolios met their individual IPP targets.

Commonwealth portfolio performance against 2016–17 targets
Portfolio Target
2016–17
Contract count against
target (a)
Value of new contracts
2016–17
$ million
Agriculture and Water Resources 31 87 $3.4
Attorney-General's 115 196 $8.0
Communications and the Arts 28 204 $13.7
Defence 420 617 $108.6
Education and Training 21 100 $1.9
Employment 44 92 $3.5
Environment 84 298 $9.4
Finance 48 53 $8.7
Foreign Affairs and Trade 78 116 $5.6
Health 73 352 $11.5
Human Services 106 424 $11.7
Immigration and Border Protection 111 224 $4.9
Industry, Innovation and Science 90 112 $22.3
Infrastructure and Regional Development 48 68 $3.0
Parliamentary Departments 25 41 $.5
Prime Minister and Cabinet 38 370 $32.9
Social Services 38 72 $7.8
Treasury 114 276 $27.0
Veterans' Affairs 25 46 $1.0
Total Commonwealth  1,537 3,748 $285.5

(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.

Commonwealth Indigenous Procurement 2017-18 (3%) Targets - By number of contracts and portfolio
Portfolio 2017-18 Procurement targets (3%)
Education 21
Veterans' Affairs 25
Parliamentary Departments 25
Communications 28
Agriculture 31
PM&C 38
Social Services 38
Employment 44
Infrastructure and Regional Development 48
Finance 48
Health 73
Foreign Affairs and Trade 78
Environment 84
Industry and Science 90
Human Services 106
Immigration and Border Protection 111
Treasury 114
Attorney-General's 115
Defence 420
Total Commonwealth 1,537

Mandatory set aside results

Performance against the mandatory set aside is improving, but a continued focus on implementation is needed.

Contract Results
Performance against the mandatory set aside
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

Date and time City State Details
Indigenous Business Trade Fair Serie
Thursday, 21 September Canberra ACT

Indigenous Business Trade Fair Series: Canberra

Tuesday, 24 October
2:30pm-4:30pm
Darwin NT To be held at the Darwin Convention Centre
TBC Perth WA  
TBC Brisbane
Adelaide
QLD
SA
 

More information is available on the SupplyNation website.

Contact us

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.

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