Commonwealth portfolios exceed 2016-17 Indigenous Procurement Policy targets

Commonwealth portfolios exceed 2016-17 Indigenous Procurement Policy targets

Indigenous Affairs Economic Development Indigenous Procurement Policy
Thursday, 05 October 2017

Department of the Prime Minister and Cabinet

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Commonwealth agencies have embraced the Indigenous Procurement Policy (IPP), with all portfolio areas exceeding the 3 per cent IPP target in 2016-17. This is the second year IPP targets have been surpassed.

Michael O’Loughlin, former Sydney Swans great is now Managing Director of CMC Indigenous Services, a cleaning and property maintenance company listed with Supply Nation.

Mr O’Loughlin said his business has benefited from the IPP. “The IPP helps to open doors to be able to build relationships and turn them into business.’

The IPP requires every Commonwealth portfolio to consider Indigenous businesses first when looking to procure goods or services valued from $80,000 - $200,000 and all goods and services to be delivered in remote regions of Australia, regardless of the value.   

In addition, contracts valued at $7.5 million or above in eight industry sectors must now include Indigenous participation targets. These targets have been included in $1.6 billion worth of contracts, since this was introduced in July 2016. Since the implementation of the IPP in July 2015, 4,880 contracts worth a combined $594 million have been awarded across a wide variety of industry and business sectors, from food services and construction to the supply of office furniture and legal services. 

Image of table showing portfolio targets and outcomes for 2016-17

Through the IPP, the Australian Government is tapping into the extraordinary capabilities within the Indigenous Business Sector. Further information is available at Indigenous Procurement Policy.