I am writing to advise of changes to the Indigenous Procurement Policy (IPP) that came into effect on 1 July 2020 and to acknowledge an important milestone.
I am pleased to advise the total value of contracts awarded to Indigenous businesses through Commonwealth procurement since the introduction of the IPP in 2015 now exceeds $3 billion. This achievement represents an important shift in APS procurement practices that has increased the participation of Indigenous Australians in the delivery of Commonwealth government projects and services.
On 1 July 2020, the changes to the IPP announced by the Australian Government in 2019 came effect:
- The requirement to include mandatory minimum Indigenous participation targets (MMR) in approaches to market from 1 July 2020 for Commonwealth contracts valued at $7.5 million or more now apply to an additional 11 industry categories, bringing the total number of industry categories required to contain Indigenous employment and/or supply use targets to 19.
- The Commonwealth value target for purchasing from Indigenous businesses has increased from 1 per cent to 1.25 per cent of the value of eligible procurements for the 2020-21 financial year. This target will continue to increase by 0.25 per cent each financial year until 3 per cent is reached. The 3% volume target remains in place as well.
These changes will increase the demand for Indigenous businesses across a broad range of industries sectors, assisting to minimise the impact of the COVID-19 pandemic on the Indigenous business sector.
An updated version of the Indigenous Procurement Policy has been approved by the Minister for Indigenous Australians, the Hon. Ken Wyatt AM, MP and is now available on the NIAA website: www.niaa.gov.au/resource-centre/indigenous-affairs/indigenous-procurement-policy alongside tailored guidance material to support the implementation of the MMR. This material has been developed in consultation with government agencies, suppliers and the Indigenous business sector. www.niaa.gov.au/indigenous-affairs/economic-development/indigenous-procurement-policy-ipp and one aimed at the major suppliers www.niaa.gov.au/resource-centre/indigenous-affairs/ipp-guide2-suppliers. The website also includes updated guidance material related to the use of our reporting tool the IPP Reporting solution https://www.niaa.gov.au/resource-centre/indigenous-affairs/welcome-pack-industry-contractors. Tailored guidance material for Indigenous businesses is under development.
Grateful if you can distribute this information within your networks as appropriate. If you have any queries you can contact the IPP team on IndigenousProcurement@NIAA.gov.au