The Basics of the Indigenous Procurement Policy of 2015


The process of indigenous procurement can be confusing for many businesses and organisations. In this article, we provide answers to many of the burning questions you may have around this topic. Reach out to us if we haven't answered a question for you. How do the commonwealth procurement rules support indigenous procurement? Exemption 16 of the Commonwealth Procurement Rules (CPR) enables Commonwealth buyers to purchase directly from Indigenous small and medium enterprises (SMEs) for contracts of any size and value. Under this exemption, value for money must still be determined but this can be done through a simple quote process. What is the indigenous procurement policy (IPP)? The IPP gives direction to procurement officers on when Exemption 16 to the CPR’s must be considered. The IPP has three parts: A target for the number of contracts to be awarded to Indigenous businesses. A mandatory set-aside of contracts valued between $80,000 to $200,000 and all remote contracts. Indigenous participation requirements for Indigenous employment and/or supplier used in contracts valued at $7.5 million or more in specified sectors. What is an indigenous business? Under the policy, an Indigenous business is any business that is 50 per cent or more Indigenous-owned. Supply [...]