Indigenous Procurement Policy’s billion dollar success set to continue

Indigenous Procurement Policy’s billion dollar success set to continue

Indigenous Affairs Economic Development Indigenous Procurement Policy
Thursday, 14 February 2019

Department of the Prime Minister and Cabinet

Indigenous Procurement Policy Performance Snapshot. More Indigenous owned businesses than ever before are winning Australian Government Contracts, with more than 11,933 contracts awarded to over 1,473 Indigenous businesses with a value of over $1.83 billion. The Australian Government's Indigenous Procurement Policy drives Indigenous entrepreneurship and business development. Find out more at pmc.gov.au/ipp

More Indigenous-owned businesses than ever are taking up opportunities created by the Indigenous Procurement Policy (IPP).

The IPP is a mandatory procurement policy for Commonwealth portfolios. It is designed to drive demand for Indigenous goods and services, and grow the Indigenous business sector.

Since the commencement of the IPP in July 2015, 1473 Indigenous businesses have won 11,933 contacts valued in total at over $1.83 billion.

In 2017-18 alone, 335 businesses won their first Australian Government contract, creating jobs, and building wealth and opportunities for First Australian families. All Commonwealth portfolio agencies exceeded their 3 per cent Indigenous procurement targets for 2017-18.

To ensure Indigenous businesses continue to reap the benefits of doing business with government, the Australian Government has announced changes to the IPP.

From 1 July 2019, a three per cent value target will be introduced, beginning at one per cent and phased in over eight years. This policy adjustment is intended to ensure Indigenous businesses are considered for contracts across the value spectrum.

Mandatory minimum Indigenous employment and supplier use for contracts over $7.5 million are currently in place in eight industries. In July 2020, contract categories for these mandatory minimums will be expanded to include additional service categories.

Indigenous Procurement Policy performance snapshot. More Indigenous owned businesses than ever before are winning Australian Government Contracts, with more than 11,933 contracts awarded to over 1,473 Indigenous businesses with a value of over $1.83 billion. Contracts were awarded to businesses of all sizes across Australia* with the average value at $166,826, and 84 contracts valued at over $1 million. *These represent cumulative data from the start of the Indigenous Procurement Policy on 1 July 2015. Top five Mandatory Minimum Reporting (MMR) categories by value are building and construction, education and training, transportation and storage and mail services, politics and civic affairs services, editorial and design and graphic and fine art services. 105 contracts were awarded to 63 organisations with MMR valued at $7.1 billion since 1 July 2016. The Australian Government’s Indigenous Procurement Policy dives Indigenous entrepreneurship and business development. Find out more at www.pmc.gov.au/ipp