The Department of the Prime Minister and Cabinet (PM&C) has announced changes to the Australian Public Service Indigenous Procurement Policy (IPP) to drive more Government contracts to Indigenous businesses.
In a statement PM&C said that to ensure Indigenous businesses continued to reap the benefits of doing business with the Government, a three per cent value target would be introduced from 1 July, beginning at one per cent and phased in over eight years.
“The IPP is a mandatory procurement policy for Commonwealth portfolios,” the Department said.
“It is designed to drive demand for Indigenous goods and services, and grow the Indigenous business sector.”
It said the policy was changed to ensure Indigenous businesses were considered for contracts across the value spectrum.
PM&C noted that since the beginning of the IPP in July 2015, 1,473 Indigenous businesses had won 11,933 contacts worth a total of more than $1.83 billion.
“In 2017-18 alone, 335 businesses won their first Australian Government contract, creating jobs and building wealth and opportunities for First Australian families,” the Department said.
“All Commonwealth portfolio Agencies exceeded their three per cent Indigenous procurement targets for 2017-18.”
It said mandatory minimum Indigenous employment and supplier use for contracts worth more than $7.5 million were currently in place in eight industries.
“In July 2020, contract categories for these mandatory minimums will be expanded to include additional service categories,” the Department said.
