Tips for Indigenous business
The IPP helps Indigenous businesses to grow by requiring Commonwealth buyers to meet certain obligations when purchasing goods and services.
How does the IPP help Indigenous Businesses?
The IPP helps Indigenous businesses to grow by requiring Commonwealth buyers to meet certain obligations when purchasing goods and services. These include:
- For contracts delivered in remote areas, or contracts valued between $80,000 and $200,000 to be wholly delivered in Australia, Commonwealth buyers must provide Indigenous businesses with the opportunity to demonstrate value for money before a general approach to market. This is known as a Mandatory Set Aside.
- For high value procurements valued at $7.5 million or more in specified industry sectors that are wholly delivered in Australia, Commonwealth buyers must ensure Indigenous businesses or Indigenous workers participate in the delivery of the contract. These are known as Mandatory Minimum Requirements or MMR.
If a contract meets these criteria, Commonwealth buyers must contract (directly or indirectly) with an Indigenous business, but there are other circumstances in which a buyer can choose to procure from an Indigenous business.
Under the Commonwealth Procurement Rules, a Commonwealth buyer is permitted to purchase directly from a small and medium Indigenous business without having to approach the general market as long as the business can demonstrate value for money. The contract may be for any size or value.
This provides Indigenous businesses with a big advantage – they do not need to complete costly tender processes.
In order to find an Indigenous business to supply the goods and services they need, Commonwealth buyers will search Supply Nation’s online business directory, Indigenous Business Direct (IBD). This will connect buyers with businesses that can demonstrate value for money.
If you are an Indigenous business looking to supply Commonwealth buyers, you should consider registering your business with Supply Nation. Registration is free. In addition to connecting your business with buyers through the IBD, Supply Nation hosts trade fairs throughout the year to raise the profile of Indigenous businesses with Commonwealth buyers.
Definition of an Indigenous business
An Indigenous business is any business that is 50 per cent or more Indigenous owned.
Register with Supply Nation
You should consider registering your business with Supply Nation. This is one of the best steps Indigenous businesses can take to gain exposure to Commonwealth buyers. Registration is a free. The register of Indigenous businesses that Supply Nation maintains is regularly checked by Commonwealth government and non-government buyers. The Commonwealth and Supply Nation hold events throughout the year to raise the profile of Indigenous businesses with buyers.
Tips for Indigenous businesses
- Develop a clear business profile.
- Ensure your business’s communications look professional.
- Update your business’s web page regularly.
- Know your product.
- Know your customer and market.
- Understand the quoting process.
- Understand the procurement and contracting rules.
- Watch for opportunities.
- Attend networking events.
- Build relationships.
- Follow up on potential contracting leads.
- Be proactive, market your goods and services.
- Make sure you deliver value for money.
- Ask for feedback.
- Keep your Supply Nation profile current.
- Keep a list of key procurement contacts.
- Consider becoming a Commonwealth government panel member.
- Register with an Indigenous Chamber of Commerce.
For further information go to the Department of Finance website.
Finding contracting opportunities
- Register your business on AusTender.
- Create a business profile for automatic notification of opportunities.
- Search for opportunities and contracts relevant to your business.
- Monitor and watch Annual Procurement Plans.
- Meet potential Commonwealth buyers at ‘Meet the Buyer’ events and make sure your business is well known.
Getting help to build your business
Indigenous Business Australia may be able to help you with a business loan or other support to help your business grow and win Commonwealth contracts.
Your local Indigenous Chamber of Commerce may also offer support to help you gain the skills necessary to win government contracts