Indigenous Procurement Policy What is the new Indigenous Three per cent of new domestic Procurement Policy? Commonwealth contracts will be awarded to Indigenous suppliers in The policy applies to all non-corporate 2019-20. Interim targets will apply from Commonwealth entities subject to the 1 July 2015 to drive and track Commonwealth Procurement Rules performance. (CPRs). However, entities that are not required to comply with the CPRs are The interim targets are: encouraged to adopt the policy as best practice. 0.5 per cent in 2015-16 1.5 per cent in 201617 The policy has three parts: 2.0 per cent in 2017-18 A target number of contracts that 2.5 per cent in 2018-19. need to be awarded to Indigenous businesses. In 2015-16, the target will result in at A mandatory set-aside of least 250 new domestic contracts contracts for Indigenous being awarded to Indigenous businesses to apply in certain businesses across the Commonwealth, situations. increasing to more than 1,500 Mandatory minimum contractual contracts in 2019-20 when the full requirements for Indigenous 3 per cent target applies. employment and Indigenous supplier use applying to certain The target has been allocated across Commonwealth contracts. portfolios, based on past contracting share. Individual portfolio performance Under the policy, what is an against the target will be published Indigenous business? each year. An Indigenous business is any business that is 50 per cent or more What contracts does the Indigenous owned. mandatory set aside apply to? From 1 July 2015 all contracts in From 1 July 2015, Supply Nation will Remote Areas regardless of value, and maintain a free register of Indigenous all other domestic contracts valued businesses. between $80,000 and $200,000, will be subject to a mandatory set-aside Key elements of the policy process. What is the target?
Indigenous Procurement Policy What is the new Indigenous Procurement Policy? The policy applies to all non-corporate Commonwealth entities subject to the Commonwealth Procurement Rules (CPRs). However, entities that are not required to comply with the CPRs are encouraged to adopt the policy as best practice. The policy has three parts: A target number of contracts that need to be awarded to Indigenous businesses. A mandatory set-aside of contracts for Indigenous businesses to apply in certain situations. Mandatory minimum contractual requirements for Indigenous employment and Indigenous supplier use applying to certain Commonwealth contracts. Under the policy, what is an Indigenous business? An Indigenous business is any business that is 50 per cent or more Indigenous owned. From 1 July 2015, Supply Nation will maintain a free register of Indigenous businesses. Key elements of the policy What is the target? Three per cent of new domestic Commonwealth contracts will be awarded to Indigenous suppliers in 2019-20. Interim targets will apply from 1 July 2015 to drive and track performance. The interim targets are: 0.5 per cent in 2015-16 1.5 per cent in 201617 2.0 per cent in 2017-18 2.5 per cent in 2018-19. In 2015-16, the target will result in at least 250 new domestic contracts being awarded to Indigenous businesses across the Commonwealth, increasing to more than 1,500 contracts in 2019-20 when the full 3 per cent target applies. The target has been allocated across portfolios, based on past contracting share. Individual portfolio performance against the target will be published each year. What contracts does the mandatory set aside apply to? From 1 July 2015 all contracts in Remote Areas regardless of value, and all other domestic contracts valued between $80,000 and $200,000, will be subject to a mandatory set-aside process.
factsheet_ipp_overview.docx