The target has been allocated across Australia that are valued at $7.5 million portfolios, based on past contracting or more, where the majority of the share. Individual portfolio performance goods or services are in one of the against the target will be published following specified industries: each year. Building, construction and maintenance services How will the mandatory set-aside Transportation, storage and mail work? services While Indigenous businesses can bid Education and training services for any contracts, from 1 July 2015 Industrial cleaning services there are requirements for Farming and fishing and forestry Departments to look first to Indigenous and wildlife contracting services businesses for all contracts in remote Editorial and design and graphic areas regardless of value; and all other and fine art services domestic contracts valued between Travel and food and lodging and $80,000 and $200,000. entertainment services Politics and civic affairs services For these contracts, agencies will first have to check whether an Indigenous What are the mandatory minimum SME can deliver the goods or services requirements? on a value for money basis before The minimum requirements are: approaching the market. Contract-based requirement: achieve at least 4 per cent To satisfy the mandatory set-aside, the Indigenous employment and/or Commonwealth buyer will need to: supplier use on average over the Check whether there is an term of the contract; OR Indigenous business that has the Organisation-based necessary capability, and if so, achieve 3 per cent requirement: investigate whether the Indigenous employment and/or Indigenous SME offers value for supplier use across the money. organisation on average over the If it does, the contract must be term of the contract. offered to the Indigenous SME. If there is no suitable Indigenous In addition, where part of the contract SME, then the Commonwealth is to be delivered in a remote area, the buyer can select another government agency and the contractor contractor through its normal will agree to significant Indigenous purchasing process. employment or supplier use What contracts do the mandatory requirements in that area. minimum requirements apply to? Mandatory minimum requirements will The minimum Indigenous participation apply to all contracts delivered in requirements must be included in approaches to market released after 1 July 2015.
The target has been allocated across portfolios, based on past contracting share. Individual portfolio performance against the target will be published each year. How will the mandatory set-aside work? While Indigenous businesses can bid for any contracts, from 1 July 2015 there are requirements for Departments to look first to Indigenous businesses for all contracts in remote areas regardless of value; and all other domestic contracts valued between $80,000 and $200,000. For these contracts, agencies will first have to check whether an Indigenous SME can deliver the goods or services on a value for money basis before approaching the market. To satisfy the mandatory set-aside, the Commonwealth buyer will need to: Check whether there is an Indigenous business that has the necessary capability, and if so, investigate whether the Indigenous SME offers value for money. If it does, the contract must be offered to the Indigenous SME. If there is no suitable Indigenous SME, then the Commonwealth buyer can select another contractor through its normal purchasing process. What contracts do the mandatory minimum requirements apply to? Mandatory minimum requirements will apply to all contracts delivered in Australia that are valued at $7.5 million or more, where the majority of the goods or services are in one of the following specified industries: Building, construction and maintenance services Transportation, storage and mail services Education and training services Industrial cleaning services Farming and fishing and forestry and wildlife contracting services Editorial and design and graphic and fine art services Travel and food and lodging and entertainment services Politics and civic affairs services What are the mandatory minimum requirements? The minimum requirements are: Contract-based requirement: achieve at least 4 per cent Indigenous employment and/or supplier use on average over the term of the contract; OR Organisation-based requirement: achieve 3 per cent Indigenous employment and/or supplier use across the organisation on average over the term of the contract. In addition, where part of the contract is to be delivered in a remote area, the government agency and the contractor will agree to significant Indigenous employment or supplier use requirements in that area. The minimum Indigenous participation requirements must be included in approaches to market released after 1 July 2015.
IPP_overview_11Sept2015.docx