The primary purpose of the Indigenous Procurement Policy (IPP) is to stimulate Indigenous entrepreneurship, business and economic development, providing Indigenous Australians with more opportunities to participate in the economy.
Prior to the implementation of the policy, Indigenous enterprises secured limited business from Commonwealth procurement. The policy is intended to significantly increase the rate of purchasing from Indigenous enterprises.
How the IPP works:
- Annual targets for the volume and value of contracts to be awarded to Indigenous enterprises by the Commonwealth and each Portfolio.
- The Mandatory Set Aside (MSA) requires that Indigenous businesses be given an opportunity to demonstrate value for money before a general approach to market. The MSA applies to procurements to be delivered in remote Australia and for all other procurements wholly delivered in Australia valued between $80,000‑$200,000 (GST inclusive).
- Indigenous employment and business participation targets apply to contracts wholly delivered in Australia valued at $7.5 million or more in 19 industries, known as Mandatory Minimum Indigenous Participation Requirements (MMR).
Exemption 16 of the Commonwealth Procurement Rules allows portfolios to procure directly with Indigenous small to medium size enterprises, provided the enterprise can demonstrate value for money.
The success of the IPP is measured by:
- An increase in the number of Indigenous businesses awarded a contract
- An increase in the volume and value of contracts awarded to Indigenous businesses.
Since 2015, the IPP has performed well against these KPIs, generating over $5.3 billion in contracting opportunities for Indigenous businesses. This has involved over 35,763 contracts awarded to more than 2,140 Indigenous businesses. Detailed data for 2020-21 Commonwealth Indigenous procurement outcomes is available at:
- 2020-21 Commonwealth Indigenous procurement outcomes
- Mandatory set aside results
- Mandatory Minimum Indigenous participation requirements (MMR)
IPP Guides – June 2020
Guides for managing the IPP’s mandatory minimum requirements (MMR)
- Guide 1: Procuring Officials and Contract Managers
- Guide 2: Potential Suppliers
- Guide 3: Indigenous businesses
(currently under development)
Guides for general IPP use
- Guide 4: Welcome pack for Industry Contractors (How to use the IPP Reporting Solution)
- Guide 5: Model Clauses
IPP Data/results
2020-21 Commonwealth Indigenous procurement outcomes
Over 943 Indigenous businesses secured more than 10,920 new contracts during the 2020-21 financial year. As of 21 September 2021, these were valued in total at $1.09 billion.
The Commonwealth and all portfolios exceeded their 2020-21 targets of 3 per cent of the number and 1.25 per cent of the value of accessible contracts being awarded to Indigenous businesses.
IPP data will change as contracts are varied or published on AusTender and will likely vary from Indigenous procurement published by individual portfolios.
The method for calculating and measuring performance against the target is outlined in the IPP policy document. The following data is current as at 21 September 2021.
| Portfolio | Number Target | Contract count against target | Value Target | Value of contracts |
|---|---|---|---|---|
| Agriculture, Water and the Environment | 112 | 581 | $11,245,489.51 | $58,359,458.66 |
| Attorney-General's | 70 | 213 | $3,110,915.00 | $7,563,598.30 |
| Defence | 676 | 6,476 | $110,745,011.21 | $610,667,831.28 |
| Education, Skills and Employment | 78 | 509 | $9,387,111.88 | $59,610,758.28 |
| Finance | 49 | 91 | $3,455,323.19 | $7,827,600.02 |
| Foreign Affairs and Trade | 59 | 210 | $5,615,142.14 | $9,685,872.27 |
| Health | 88 | 399 | $9,206,019.43 | $80,168,744.87 |
| Home Affairs | 102 | 1621 | $13,563,941.28 | $40,230,723.27 |
| Industry, Science, Energy and Resources | 78 | 493 | $7,943,524.80 | $40,163,162.62 |
| Infrastructure, Transport, Regional Development and Communications | 52 | 682 | $4,860,228.36 | $27,874,458.98 |
| Parliamentary Departments | 15 | 87 | $1,229,015.81 | $1,932,261.47 |
| Prime Minister and Cabinet | 43 | 591 | $2,349,104.32 | $39,654,008.94 |
| Social Services | 114 | 397 | $23,948,259.08 | $42,955,611.86 |
| Treasury | 136 | 422 | $12,761,704.88 | $30,983,839.47 |
| Veterans' Affairs | 48 | 68 | $3,554,296.40 | $7,259,632.00 |
| Total Commonwealth | 1,720 | 12,840 | $222,975,087.29 | $1,064,937,633.74 |
- For details of how portfolios report contracts against targets refer to the Indigenous Procurement Policy.
- The IPP policy includes multiyear contracts in calculating performance against number targets.
Commonwealth Indigenous Procurement Targets (number and value of contracts by portfolio)
| Portfolio | 2021-22 procurement Number target (3% of number of eligible contracts*) |
2021-22 procurement Value target (1,50% of value of eligible contracts*) |
|---|---|---|
| Agriculture, Water and the Environment | 96 | $12,709,224.27 |
| Attorney-General's | 74 | $1,790,583.11 |
| Defence | 696 | $131,283,787.73 |
| Education, Skills and Employment | 53 | $12,605,698.98 |
| Finance | 51 | $5,218,323.28 |
| Foreign Affairs and Trade | 60 | $4,464,639.35 |
| Health | 99 | $6,929,185.67 |
| Home Affairs | 105 | $18,311,994.38 |
| Industry, Science, Energy and Resources | 75 | $6,478,891.16 |
| Infrastructure, Transport, Regional Development and Communications | 48 | $4,550,175.35 |
| Parliamentary Departments | 13 | $1,132,784.28 |
| Prime Minister and Cabinet | 42 | $3,008,664.58 |
| Social Services | 115 | $28,136,051.34 |
| Treasury | 143 | $12,506,421.91 |
| Veterans' Affairs | 76 | $5,540,580.31 |
| Total Commonwealth | 1746 | $244,877,998.73 |
* For details on how targets are calculated targets refer to the Indigenous Procurement Policy
Contract Count by Financial Year
The following graph shows the growing size of the Indigenous business sector since the IPP started.
Mandatory set aside results
The Mandatory Set-Aside (MSA) arrangements provide Indigenous SMEs with the opportunity to demonstrate value for money before the procuring official makes a general approach to the market.
The following tables demonstrate that Indigenous businesses continue to win more contracts under the MSA, including in remote areas.
| Mandatory Set Aside Results | 2015-16 | 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21* |
|---|---|---|---|---|---|---|
| Number of new IPP contracts valued at $80,000–$200,000 and listed on AusTender | 127 | 219 | 289 | 411 | 481 | 677 |
| Number of new IPP contracts, valued between $80,000–$200,000, as percentage of total listed on AusTender | 1.33% | 2.46% | 3.15% | 4.63% | 4.67% | 6.18% |
| Value of new IPP contracts valued at $80,000–$200,000 and listed on AusTender ($ million) | $16.3 | $28.2 | $37.4 | $52.6 | $64.1 | $89.3 |
| Value of new IPP contracts valued between $80,000–$200,000, as percentage of total value of these contracts listed on AusTender | 1.33% | 2.45% | 3.18% | 4.59% | 4.74% | 6.20% |
| Mandatory Set Aside –Remote Performance | 2015-16 | 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21* |
|---|---|---|---|---|---|---|
| Number of new contracts delivered in remote areas | 207 | 609 | 894 | 830 | 1108 | 1452 |
| Value of new contracts delivered in remote areas ($ million) |
$25.6 | $81.6 | $112.7 | $87.9 | $105.7 | $70.9 |
MSA Notes:
- For full details on the MSA including information on when it does not apply refer to the Indigenous Procurement Policy.
- NIAA was unable to exclude contracts that were subject to an exemption prior to 1 July 2018. Due to this data constraint, for the period 2015-16 to 2017-18, performance is likely to be higher than reported in the MSA tables above.
- Under the IPP, the MSA applies to all contracts delivered in remote areas regardless of value. As a result, contracts delivered in remote areas, that also meet the MSA threshold ($80,000-$200,000), are included in both MSA tables on this page.
- IPP data for remote Australia is under-reported as it relies on manual reporting. NIAA continues to work with portfolios to develop better systems to collect this data.
- A map defining the areas considered remote under the IPP is available.
Mandatory Minimum Indigenous participation requirements (MMR) for Indigenous workforce and/or supply targets (MMR)
Since 1 July 2016, 255 contracts valued at $16.9 billion, awarded to 158 organisations, have been subject to the IPP’s mandatory minimum Indigenous participation requirements (MMR).
MMR targets apply to contracts wholly delivered in Australia valued at or above $7.5m that are awarded in one or more of 19 specified industry categories.
The original eight industry categories under the MMR, which applied to Approaches to Market undertaken from 1 July 2016, are:
- Farming and fishing and forestry and wildlife contracting services.
- Building, construction and maintenance services.
- Industrial cleaning services.
- Transportation, storage and mail services.
- Editorial and design and graphic and fine art services.
- Education and training services.
- Travel and food and lodging and entertainment services.
- Politics and civic affairs services.
From 1 July 2020, the following 11 new industry categories with mandatory minimum requirements were added, which apply to Approaches to Market undertaken from that date:
- Financial instruments, products, contracts and agreements.
- Mining and oil and gas services.
- Industrial production and manufacturing services.
- Environmental services.
- Management and business professionals and administrative services (sub-category exemptions apply*).
- Engineering and research and technology-based services.
- Financial and insurance services (sub-category exemptions apply*).
- Healthcare services.
- Personal and domestic services.
- National defence and public order and security and safety services (sub-category exemption applies).
- Organisations and clubs.
*sub-category exemption applies – for more information refer to the Indigenous Procurement Policy and UNSPSC policy guide.
Companies with active MMR contracts
The following table lists organisations that currently have one or more contracts with an MMR, as at 21 September 2021.
| Organisation | Number of contracts |
|---|---|
| MAS NATIONAL LIMITED | 3 |
| AUTISM SPECTRUM AUSTRALIA (ASPECT) | 1 |
| ThyssenKrupp Elevator Australia | 1 |
| ADCO GROUP PTY LIMITED | 1 |
| HINDMARSH CONSTRUCTION AUSTRALIA PT | 1 |
| SOUTH METROPOLITAN TAFE | 1 |
| APGC GROUP PTY. LTD. | 1 |
| TAFE SA | 1 |
| SITZLER PTY LTD | 3 |
| BUSY AT WORK | 2 |
| Education Services Australia Ltd | 3 |
| NACP PROJECTS AUSTRALIA PTY LTD | 1 |
| IPSA | 1 |
| PRICEWATERHOUSECOOPERS CONSULTING (AUSTRALIA) PTY LIMITED | 1 |
| SARINA RUSSO JOB ACCESS | 3 |
| ACE INFRASTRUCTURE PTY. LTD. | 2 |
| NORTH METROPOLITAN TAFE | 1 |
| Iron Mountain Australia Group Pty Ltd | 1 |
| MTC Work Solutions | 1 |
| TEACH FOR AUSTRALIA | 1 |
| AUSTRALIAN POSTAL CORPORATION | 3 |
| SKYTRADERS PTY LTD | 2 |
| TOLL TRANSITIONS | 1 |
| BADGE CONSTRUCTIONS | 1 |
| INTRACT AUSTRALIA PTY LTD | 1 |
| DOWNER EDI WORKS PTY LTD & F.K. GARDNER & SONS PTY. LTD. | 1 |
| VERTO LTD | 2 |
| RAYTHEON AUSTRALIA | 1 |
| Cota Australia Ltd | 1 |
| GARDEN ISLAND BAYINGUWA DELIVERY TEAM | 1 |
| CHARTAIR PTY LTD | 1 |
| MINICON CONSTRUCTION (QLD) PTY LTD | 1 |
| Settlement Services International | 1 |
| HANSEN YUNCKEN PTY LTD | 2 |
| LAING O'ROURKE AUSTRALIA | 2 |
| Datacom Systems (AU) Pty Ltd | 1 |
| Manteena Security (Aust) Pty Ltd | 1 |
| Access Care Network Australia Pty Ltd | 1 |
| HOLMESGLEN INSTITUTE OF TAFE FINANCE DEPARTMENT | 1 |
| MDA Ltd | 1 |
| CONVERGA PTY LTD | 2 |
| SERCO AUSTRALIA PTY LTD | 2 |
| MILSEARCH PTY LTD | 1 |
| VIVA ENERGY AUSTRALIA PTY LTD | 1 |
| AUSTRALIAN NUCLEAR SCIENCE AND TECHNOLOGY ORGANISATION (ANSTO) | 1 |
| MADEC Australia | 1 |
| KANE CONSTRUCTIONS PTY LTD | 1 |
| AMES Australia | 2 |
| ACCENTURE AUSTRALIA PTY LTD | 3 |
| BUPA HEALTH SERVICES PTY LTD | 1 |
| TOP END GROUP TRAINING NORTHERN | 1 |
| Melaleuca Refugee Centre | 1 |
| Australian Red Cross Society | 1 |
| MELBOURNE POLYTECHNIC | 1 |
| NAVITAS ENGLISH PTY LTD | 2 |
| MAX EMPLOYMENT | 1 |
| YOUNG GUNS CONTAINER CREW PTY LTD | 1 |
| KPMG AUSTRALIA | 2 |
| Chambers Apprenticeship Support Australia Pty Ltd | 3 |
| HUTCHINSON BUILDERS | 1 |
| AUSTRALASIAN FIRE AND EMERGENCY SERVICE AUTHORITIES COUNCIL LIMITED | 1 |
| Evolve FM Pty Ltd | 1 |
| DDR INDIGENOUS CONTRACTORS JV PTY LTD | 2 |
| LORQ BUILDING PTY LIMITED | 1 |
| DOWNER EDI ENGINEERING POWER PTY LTD | 1 |
| B P Australia Pty Ltd | 1 |
| THE SYDNEY CHILDRENS HOSPITALS NETWORK | 1 |
| FULTON HOGAN INDUSTRIES PTY LTD | 2 |
| CHARLES DARWIN UNIVERSITY | 1 |
| TASTAFE | 1 |
| LEND LEASE BUILDING CONTRACTORS PTY LTD | 2 |
| LENDLEASE BUILDING CONTRACTORS PTY LIMITED | 3 |
| UNIVERSITY OF NSW ADFA UNSW@ADF | 1 |
| DJERRIWARRH EMPLOYMENT & EDUCATION | 2 |
| IVE Group Australia Pty Ltd | 1 |
| BMD CONSTRUCTIONS PTY LTD | 2 |
| Complex Civil Pty Ltd | 1 |
| TETRA TECH INTERNATIONAL DEVELOPMENT | 1 |
| BADGE PTY LTD | 1 |
| BARPA CONSTRUCTION SERVICES | 12 |
| Serendipity (WA) Pty Ltd | 1 |
| CANPRINT COMMUNICATIONS PTY LTD | 1 |
| ST HILLIERS CONTRACTING PTY LIMITED | 4 |
| William Angliss Institute | 1 |
| ICON SI (AUST) PTY LTD | 1 |
| TAFE SA | 1 |
| SHAMROCK CIVIL ENGINEERING PTY LTD | 2 |
| QINETIQ PTY LTD | 1 |
| WODONGA INSTITUTE OF TAFE | 1 |
| BADGE CONSTRUCTIONS QLD PTY LTD AND NATIONAL ABORIGINAL | 2 |
| TIWI PARTNERS (AUST) PTY LTD | 2 |
| Australian Refrigeration Council Lt | 1 |
| Aged Care Workforce industry Council Ltd | 1 |
| Shape Australia Pty Limited | 1 |
| WATPAC CONSTRUCTION PTY LTD | 3 |
| TAFE QUEENSLAND | 3 |
| COLIN JOSS & CO PTY LTD | 2 |
| BENDIGO KANGAN INSTITUTE | 1 |
| ONE TREE COMMUNITY SERVICES INC | 1 |
| ERNST & YOUNG | 1 |
| TVN ON-COUNTRY PTY LTD | 1 |
| STEPS GROUP AUSTRALIA LIMITED | 2 |
| WAANYI SHAMROCK UNITED PTY LTD | 2 |
| IBM Australia Ltd | 2 |
| The Camerons Group | 1 |
| RIGHT MANAGEMENT CONSULTANTS PTY LTD | 1 |
| Australian Healthcare Associates | 2 |
| TIWI PARTNERS PTY LTD | 1 |
| BGIS Pty Ltd | 1 |
| ARRPWERE CONSULTING PTY LTD | 1 |
| MEGT (AUSTRALIA) LTD | 5 |
| National Aboriginal Community Control | 1 |
| FAMILY DAY CARE ASSOCIATION QLD LTD | 1 |
| TECHNICAL & FURTHER EDUCATION | 2 |
| THE SOCIAL RESEARCH CENTRE | 2 |
| Cancer Council Australia | 1 |
| MINISTRY OF HEALTH | 1 |
| FUJIFILM DATA MANAGEMENT SOLUTIONS AUSTRALIA PTY LTD | 1 |
| DURATEC AUSTRALIA | 6 |
| Message Stick Communications Pty Ltd | 1 |
| Healthcare Australia Pty Ltd | 1 |
| LENDLEASE BUILDING PTY LIMITED | 4 |
| NSW FAMILY DAY CARE ASSOCIATION | 1 |
| CPB CONTRACTORS PTY LIMITED | 2 |
| TOLL REMOTE LOGISTICS PTY LTD | 1 |
| MONTROSE ENVIRONMENTAL GROUP, INC TECHNOLOGIES (ECT) | 1 |
