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 $6.9 billion in contracting opportunities for Indigenous businesses. This has involved over 47,500 contracts awarded to more than 3,000 Indigenous businesses. Detailed data for 2021-22 Commonwealth Indigenous procurement outcomes is available at:
- 2021-22 Commonwealth Indigenous procurement outcomes
- Mandatory set aside results
- Mandatory Minimum Indigenous participation requirements (MMR)
IPP Guides
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
Factsheets for general IPP use
- Factsheet: Overview
- Factsheet: Mandatory Minimum Indigenous Participation Requirements
- Factsheet: Mandatory Set Aside
IPP Data/results
2021-22 Commonwealth Indigenous procurement outcomes
Over 1,200 Indigenous businesses secured more than 11,500 new contracts during the 2021‑22 financial year. As of September 2022, these were valued in total at $1.6 billion.
The Commonwealth and all portfolios exceeded their 2021-22 targets of 3 per cent of the number and 1.50 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 September 2022.
| Portfolio | Number Target | Contract count against target | Value Target | Value of contracts |
|---|---|---|---|---|
| Agriculture, Water and the Environment | 96 | 806 | $12,709,224 | $79,852,622 |
| Attorney-General's | 74 | 263 | $1,790,583 | $14,567,319 |
| Defence | 696 | 5,430 | $131,283,788 | $1,024,526,031 |
| Education, Skills and Employment | 53 | 582 | $12,605,699 | $59,730,984 |
| Finance | 51 | 199 | $5,218,323 | $12,587,987 |
| Foreign Affairs and Trade | 60 | 201 | $4,464,639 | $11,791,219 |
| Health | 99 | 470 | $6,929,186 | $119,139,652 |
| Home Affairs | 105 | 2600 | $18,311,994 | $27,368,831 |
| Industry, Science, Energy and Resources | 75 | 534 | $6,478,891 | $67,332,980 |
| Infrastructure, Transport, Regional Development and Communications | 48 | 674 | $4,550,175 | $28,329,044 |
| Parliamentary Departments | 13 | 75 | $1,132,784 | $1,278,411 |
| Prime Minister and Cabinet | 42 | 627 | $3,008,665 | $67,667,110 |
| Social Services | 115 | 781 | $28,136,051 | $68,091,938 |
| Treasury | 143 | 620 | $12,506,422 | $23,195,508 |
| Veterans' Affairs | 76 | 170 | $5,540,580 | $11,588,087 |
|
Total Commonwealth |
1,746 |
14,032 |
$254,667,006 |
$1,617,047,723 |
- 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 | 2022-23 procurement Number target (3% of number of eligible contracts*) |
2022-23 procurement Value target (1.75% of value of eligible contracts*) |
|---|---|---|
|
Agriculture, Fisheries and Forestry |
97 |
$15,465,696 |
|
Attorney-General's |
108 |
$8,883,475 |
|
Climate Change, Energy, the Environment and Water |
43 |
$6,435,957 |
|
Defence |
737 |
$207,369,467 |
|
Employment and Workplace Relations |
78 |
$20,805,061 |
|
Finance |
62 |
$8,432,612 |
|
Foreign Affairs and Trade |
63 |
$3,893,696 |
|
Health and Aged Care |
121 |
$17,190,837 |
|
Home Affairs |
48 |
$10,486,401 |
|
Industry, Science and Resources |
72 |
$12,612,130 |
|
Infrastructure, Transport, Regional Development, Communications and the Arts |
55 |
$7,230,677 |
|
Parliamentary Departments |
14 |
$1,734,447 |
|
Prime Minister and Cabinet |
42 |
$3,379,133 |
|
Social Services |
95 |
$25,053,518 |
|
Treasury |
151 |
$21,343,756 |
|
Veterans Affairs |
86 |
$6,951,310 |
| Total Commonwealth |
1872 |
$377,268,173 |
* 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 | 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 |
|---|---|---|---|---|---|---|
| Number of new IPP contracts valued at $80,000–$200,000 and listed on AusTender | 219 | 289 | 411 | 481 | 677 | 773 |
| Number of new IPP contracts, valued between $80,000–$200,000, as percentage of total listed on AusTender | 2.46% | 3.15% | 4.63% | 4.67% | 6.18% | 6.71% |
| Value of new IPP contracts valued at $80,000–$200,000 and listed on AusTender ($ million) | $28.2 | $37.4 | $52.6 | $64.1 | $89.3 | $104.0 |
| Value of new IPP contracts valued between $80,000–$200,000, as percentage of total value of these contracts listed on AusTender | 2.45% | 3.18% | 4.59% | 4.74% | 6.20% | 7.82% |
| Mandatory Set Aside –Remote Performance | 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 |
|---|---|---|---|---|---|---|
| Number of new contracts delivered in remote areas | 609 | 894 | 830 | 1108 | 1452 | 2250 |
| Value of new contracts delivered in remote areas ($ million) |
$81.6 | $112.7 | $87.9 | $105.7 | $70.9 | $202.46 |
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, 376 contracts valued at $21.6 billion, awarded to 210 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 30 September 2022.
| Organisation | Number of contracts |
|---|---|
| yourtown | 1 |
| MAS NATIONAL LIMITED | 3 |
| AUTISM SPECTRUM AUSTRALIA (ASPECT) | 1 |
| ThyssenKrupp Elevator Australia | 1 |
| Joblink Plus Limited | 4 |
| AEROSPACE TRAINING SERVICES PTY LIMITED | 1 |
| Kuditj Pty Ltd | 1 |
| Job Futures Ltd | 2 |
| The Trustee for Designer Life (Queensland) Trust | 2 |
| MODIS STAFFING PTY LTD | 1 |
| Mission Australia | 2 |
| ADCO GROUP PTY LIMITED | 1 |
| HINDMARSH CONSTRUCTION AUSTRALIA PT | 1 |
| SOUTH METROPOLITAN TAFE | 1 |
| CAE AUSTRALIA PTY LTD | 1 |
| Australian Institute of Health & Welfare (AIHW) | 1 |
| APGC GROUP PTY. LTD. | 4 |
| SITZLER PTY LTD | 1 |
| BUSY AT WORK | 3 |
| Olympus Solutions Limited | 1 |
| Education Services Australia Ltd | 2 |
| NACP PROJECTS AUSTRALIA PTY LTD | 3 |
| Western District Employment Access Inc. | 2 |
| IPSA | 1 |
| AECOM AUSTRALIA PTY LTD | 1 |
| HealthX Group Pty Ltd | 1 |
| PRICEWATERHOUSECOOPERS CONSULTING (AUSTRALIA) PTY LIMITED | 2 |
| ABS Institute Pty Ltd | 1 |
| Fraser & Jenkinson Pty Ltd | 1 |
| TELDRAW PTY. LIMITED | 2 |
| SARINA RUSSO JOB ACCESS | 6 |
| DMAA SEAFORCE PTY LIMITED | 1 |
| Accoras Limited | 1 |
| WILLYAMA INDIGENOUS ICT SERVICES | 1 |
| ACE INFRASTRUCTURE PTY. LTD. | 2 |
| NORTH METROPOLITAN TAFE | 1 |
| ACOR CONSULTANTS (WA) PTY LTD TRUST | 1 |
| Iron Mountain Australia Group Pty Ltd | 1 |
| Individual Empowerment Network Pty Ltd | 1 |
| MTC Australia Limited | 3 |
| Australian Private Networks | 1 |
| TEACH FOR AUSTRALIA | 1 |
| SYC Limited | 4 |
| NGAMURU ADVISORY PTY LTD | 1 |
| NSWALC Employment and Training Ltd | 1 |
| Communicare Inc. | 1 |
| Ninti One Limited | 1 |
| Workskil Australia Ltd. | 2 |
| Australia Post | 2 |
| AtWork Australia Pty Ltd | 1 |
| A GABRIELLI CONSTRUCTIONS PTY LTD | 1 |
| MSS Security Pty Limited | 1 |
| RANJE JV | 1 |
| Gippsland Group Training Limited | 1 |
| LOCKHEED MARTIN AUSTRALIA PTY LTD | 1 |
| Northern Joblink Limited | 2 |
| MENTUM SYSTEMS PTY LTD | 1 |
| SKYTRADERS PTY LTD | 2 |
| TOLL TRANSITIONS | 1 |
| BEST Employment Limited | 1 |
| HAMMOND STREET DEVELOPMENTS | 1 |
| RNTT Pty Ltd | 2 |
| INTRACT AUSTRALIA PTY LTD | 1 |
| DOWNER EDI WORKS PTY LTD & F.K. GARDNER & SONS PTY. LTD. | 1 |
| AGIS GROUP PTY LTD | 1 |
| VERTO LTD | 4 |
| Workforce Plus Inc | 1 |
| GARDEN ISLAND BAYINGUWA DELIVERY TEAM | 1 |
| JACOBS GROUP (AUSTRALIA) PTY LTD | 1 |
| Settlement Services International | 2 |
| HANSEN YUNCKEN PTY LTD | 2 |
| Telstra Health Pty Ltd | 1 |
| GHD PTY LTD | 1 |
| Sonic Healthplus Pty Ltd | 1 |
| LAING O'ROURKE AUSTRALIA | 2 |
| Datacom Systems (AU) Pty Ltd | 1 |
| MANTEENA SECURITY (AUST) PTY LTD | 1 |
| AKJ SERVICES PTY LTD | 2 |
| HOLMESGLEN INSTITUTE OF TAFE FINANCE DEPARTMENT | 2 |
| Multicultural Australia Ltd | 2 |
| National Centre For Action On Child Sexual Abuse Limited | 1 |
| PERPETUAL TRUSTEE COMPANY LIMITED | 1 |
| CANON BUSINESS SERVICES AUSTRALIA P | 1 |
| Wesley Community Services Limited | 1 |
| Business Enterprise Centre Northside Limited | 1 |
| ENVIROPACIFIC SERVICES | 1 |
| SERCO AUSTRALIA PTY LTD | 1 |
| MILSEARCH PTY LTD | 1 |
| Access Community Services Limited | 1 |
| CVGT Australia Limited | 3 |
| Community Solutions Group Limited | 1 |
| Family Services Illawarra Limited | 1 |
| MADEC Australia | 2 |
| Community AXIS Enterprises Inc | 2 |
| BASELINE PROJECTS | 1 |
| AMES Australia | 2 |
| ACCENTURE AUSTRALIA PTY LTD | 2 |
| BYCC ALLIANCE PTY LIMITED | 1 |
| ROYAL MELBOURNE INSTITUTE OF TECHNOLOGY | 1 |
| BUPA HEALTH SERVICES PTY LTD | 1 |
| TOP END GROUP TRAINING NORTHERN | 1 |
| ONCALL Language Services | 1 |
| Australian Red Cross Society | 1 |
| MELBOURNE POLYTECHNIC | 1 |
| Workways Australia Limited | 2 |
| NAVITAS ENGLISH PTY LIMITED | 2 |
| MAX EMPLOYMENT | 2 |
| YOUNG GUNS CONTAINER CREW PTY LTD | 1 |
| Petrofac Facilities Management Limited | 1 |
| PricewaterHousecoopers Indigenous Consulting Pty Limited | 1 |
| KPMG AUSTRALIA | 2 |
| Chambers Apprenticeship Support Australia Pty Ltd | 3 |
| Enterprise & Training Company Limited | 3 |
| HUTCHINSON BUILDERS | 1 |
| AMA PROJECTS PTY LTD | 1 |
| Australian National University | 1 |
| Evolve FM | 1 |
| DOWNER EDI ENGINEERING POWER PTY LTD | 1 |
| Djarindjin Aboriginal Corporation | 1 |
| THE SYDNEY CHILDRENS HOSPITALS NETWORK | 1 |
| South Metropolitan Youth Link Inc. | 1 |
| FULTON HOGAN INDUSTRIES PTY LTD | 2 |
| CHARLES DARWIN UNIVERSITY | 1 |
| Enterprise Management Group Pty Ltd | 2 |
| ERGT AUSTRALIA PTY LTD | 1 |
| TASTAFE | 1 |
| LENDLEASE BUILDING CONTRACTORS PTY LIMITED | 2 |
| Business Foundations Inc | 1 |
| DEAKIN UNI RESEARCH SERVICES | 1 |
| UNIVERSITY OF NSW ADFA UNSW@ADF | 1 |
| Djerriwarrh Employment & Education Services Inc. | 2 |
| LOCAL LAND SERVICES | 1 |
| IVE Group Australia Pty Ltd | 1 |
| OBSIDIAN DIGITAL PTY LTD | 1 |
| Northern Territory Indigenous Business Network | 1 |
| DHL GLOBAL FORWARDING (AUSTRALIA) PTY LTD | 1 |
| VERIZON AUSTRALIA PTY LIMITED | 1 |
| KENNELLY CONSTRUCTIONS PTY LTD | 1 |
| BADGE PTY LTD | 1 |
| Status Works Pty Ltd | 1 |
| BARPA CONSTRUCTION SERVICES | 7 |
| Serendipity (WA) Pty Ltd | 5 |
| The Trustee for The Salvation Army (Victoria) Property Trust | 1 |
| Impact Services Pty Ltd | 1 |
| PARKVILLE INSTITUTE LTD | 1 |
| NTT AUSTRALIA PTY LTD (AUD) | 1 |
| Jobfind Centres Australia Pty Ltd | 3 |
| CANPRINT COMMUNICATIONS PTY LTD | 1 |
| 2Connect Youth & Community Inc. | 1 |
| Flinders University | 1 |
| MCKINSEY PACIFIC RIM INC | 1 |
| ST HILLIERS CONTRACTING PTY LIMITED | 6 |
| THE NOUS GROUP | 1 |
| ICON SI (AUST) PTY LTD | 1 |
| RIVERINA REDEVELOPMENT JOINT VENTUR SPOTLESS FACILITY SERVICES PTY LTD | 1 |
| TAFE SA | 1 |
| SHAMROCK CIVIL ENGINEERING PTY LTD | 2 |
| WISE Employment Ltd | 1 |
| QINETIQ PTY LTD | 2 |
| WODONGA INSTITUTE OF TAFE | 1 |
| Customer Driven Solutions Pty Ltd | 1 |
| TIWI PARTNERS (AUST) PTY LTD | 3 |
| Jones Lang LaSalle (ACT) Pty Ltd | 3 |
| VENTIA UTILITY SERVICES PTY LIMITED | 1 |
| Australian Refrigeration Council Lt | 1 |
| Aged Care Workforce industry Council Ltd | 1 |
| SHAPE Australia Pty Limited | 2 |
| MULTIPLEX CONSTRUCTIONS PTY LTD | 1 |
| WATPAC CONSTRUCTION PTY LTD | 4 |
| Workpac Employment Services Pty Ltd | 1 |
| CatholicCare Sandhurst | 1 |
| ADOBE SYSTEMS PTY LTD | 1 |
| TAFE QUEENSLAND | 3 |
| COLIN JOSS & CO PTY LTD | 1 |
| Sureway Employment and Training Pty Ltd | 1 |
| DELOITTE TOUCHE TOHMATSU | 2 |
| Karingal St Laurence Limited (Matchworks) | 1 |
| ONE TREE COMMUNITY SERVICES INC | 1 |
| Ernst & Young | 1 |
| LAING O'ROURKE AUSTRALIA PM PTY LIM | 1 |
| AimBig Employment Pty Ltd | 1 |
| Computershare Communication Services | 1 |
| BOX HILL INSTITUTE OF TAFE | 1 |
| Blue Mountains, Hawkesbury and Penrith Schools Industry Partnership Inc | 1 |
| Innovative Disability Employment and Liaison Placements Assoc Inc | 1 |
| STEPS GROUP AUSTRALIA LIMITED | 1 |
| Workskills Incorporated | 2 |
| CORPORATE CULCHA PTY LTD | 1 |
| WAANYI SHAMROCK UNITED PTY LTD | 3 |
| IBM AUSTRALIA LTD | 3 |
| WSP AUSTRALIA PTY LIMITED | 1 |
| Training Alliance Group Pty Ltd | 2 |
| Asuria People Services Pty Ltd | 4 |
| Jobs Australia Enterprises Ltd | 1 |
| Mareeba Shire Job Training Assoc Inc | 1 |
| Australian Healthcare Associates Pty Ltd | 2 |
| TIWI PARTNERS PTY LTD | 1 |
| Scope Global Operating Account | 1 |
| LITERACY FOR LIFE FOUNDATION LIMITE | 1 |
| ARRPWERE CONSULTING PTY LTD | 1 |
| Inner Northern Group Training Limited | 2 |
| MEGT (AUSTRALIA) LTD | 7 |
| Tursa Employment & Training Limited | 2 |
| Mai-Wel Limited | 1 |
| PARAKEELYA PTY LTD | 2 |
| EyrePlus Pty Limited | 1 |
| National Aboriginal Community Contr Health Organisation (NACCHO) | 2 |
| FAMILY DAY CARE ASSOCIATION QLD LTD | 1 |
| TECHNICAL & FURTHER EDUCATION | 2 |
| WILSON SECURITY PTY LTD | 1 |
| ADECCO AUSTRALIA PTY LTD | 1 |
| Roy Morgan Research Ltd | 1 |
| THE SOCIAL RESEARCH CENTRE | 2 |
| Cancer Council Australia | 2 |
| OCTEC Limited | 2 |
| Westgate Community Initiatives Group Ltd | 2 |
| Citywide Service Solutions Pty Ltd | 1 |
| FUJIFILM Data Management Solutions Australia Oty Ltd | 2 |
| DURATEC AUSTRALIA | 5 |
| Message Stick Communications Pty Lt | 1 |
| Healthcare Australia Pty Ltd | 1 |
| AXIS BUILDING GROUP | 1 |
| LEND LEASE BUILDING PTY LTD | 4 |
| NSW FAMILY DAY CARE ASSOCIATION | 1 |
| Quantium Health Pty Ltd | 1 |
| CPB CONTRACTORS PTY LIMITED | 2 |
| TOLL REMOTE LOGISTICS PTY LTD | 1 |
| F K GARDNER & SONS PTY LTD | 1 |
| On-Q Human Resources Limited | 1 |
| CASPER B.V. | 1 |
| MONTROSE ENVIRONMENTAL GROUP, INC TECHNOLOGIES (ECT) | 1 |
