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 50% Indigenous involvement in the management and control of the joint venture.

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

• A strategy to build the 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.

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 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 registered on the Supply Nation directory who require additional time to negotiate Indigenous involvement in the management and control of the joint venture. This arrangement will cease on 30 June 2019 and is available on the condition that, if tendering for a Commonwealth contract under the IPP, the business in its tender response:

1. Notifies the Commonwealth that it is transitioning to the new joint venture registration.
2. Provides email evidence that the Supply Nation registration process has commenced.
3. Provides the proposed skills and capability plan and Indigenous employment and workforce strategy using the Supply Nation template.

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 50% Indigenous control 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