Changes to Indigenous joint venture registration

From 1 January 2019, incorporated Indigenous joint ventures must register with Supply Nation and be at least 50% Indigenous owned and demonstrate equal Indigenous representation and involvement in the management of the joint venture.

Additionally, as part of this registration they must have in place:

• A strategy to build the skills and capability of the Indigenous business partner.
• An Indigenous workforce strategy.

The changes will apply to all incorporated joint ventures who are seeking to win Commonwealth contracts under the Indigenous Procurement Policy (IPP).

Details of the changes to the Indigenous Procurement Policy Joint Venture registration are available on the Supply Nation website.

Contracts with Indigenous joint ventures that are 25% Indigenous owned will no longer be counted towards the Indigenous Procurement Policy (IPP) target.

Incorporated joint ventures

For the purposes of the IPP an incorporated joint venture is a company formed through the incorporation of an Indigenous business and a non-Indigenous business.

The changes are being implemented in response to stakeholders’ concern that disingenuous arrangements could be formed in order for non-Indigenous businesses to access IPP contract opportunities.

There are advisory services, through Indigenous Business Australia, available to eligible Indigenous businesses who are considering entering, negotiating or exiting a joint venture arrangement. This includes Indigenous Business Australia.

For further information on available support go to the Indigenous Business Australia website.

If you already are a joint venture, you should contact Supply Nation to commence the registration process.

Supply Nation can be contacted via their website.

Transition arrangements

Transition arrangements may apply for Indigenous joint ventures who require additional time to negotiate equal Indigenous representation and involvement in the management of the joint venture. This arrangement will cease on 30 June 2019 and is available on the condition that:

1. The incorporated Indigenous joint venture contacts Supply Nation by email, to commence the new joint venture registration process.
2. If tendering for a Commonwealth contract under the IPP, the tender response must include:
   
   • A copy of the email to Supply Nation demonstrating commencement of the joint venture registration process.
   • A proposed Skills and Capability Transfer Plan and Indigenous Workforce Plan using the Supply Nation templates available on the Changes to the IPP Joint Venture registration page on the Supply Nation website.

Acceptance of the proposed plans referred to above by a Commonwealth agency is only for the purpose of assessing tenders during the transitional period. This will have no impact on the Supply Nation registration process. Supply Nation will independently review the Skills and Capability Transfer Plan and the Indigenous Workforce Plan, as part of the Indigenous joint venture registration process.

Registration needs to be finalised with Supply Nation by 30 June 2019.

Model clauses will be developed to support Commonwealth procurement officers to manage the transition arrangements. These contract clauses will require the Indigenous joint venture to meet the equal Indigenous representation and invovement in the managment requirement by 1 July 2019.

If the Indigenous joint venture does not meet these requirements, the Commonwealth Portfolio agency will reserve the right to cease the contract.

Annual reviews

To meet eligibility requirements all joint ventures will be reviewed annually to confirm that the joint venture is operating in accordance with the plans submitted to Supply Nation. In addition, random spot checks will be conducted.

Keep up to date

To keep informed on the new registration process for incorporated Indigenous joint ventures visit:

• Supply Nation website
• Indigenous Procurement Policy

Or email IndigenousProcurement@pmc.gov.au