The Federal Government has unveiled its new Aboriginal and Torres Strait Islander Procurement Strategy 2024–2027, outlining how it will increase opportunities for Aboriginal and Torres Strait Islander businesses through procurement activity.
The strategy, which delivers on key commitments in the Government’s Reconciliation Action Plan (RAP), covers four key areas including leadership, behaviours, communications and procurement goals.
Leadership
The Government has pledged to provide proactive leadership and support for Indigenous Procurement Policy (IPP) initiatives by:
- Raising awareness among senior executives to support the IPP and meet targets
- Supporting Supply Nation membership and encouraging participation in related events
- Participating in RAP working group activities to share best practices in Indigenous procurement
Behaviours
To enhance Aboriginal and Torres Strait Islander business engagement under the IPP, the focus is on:
- Maintaining relevant guidance and training materials on sourcing and engaging Indigenous businesses
- Educating buyers on proper IPP application and recording non-compliance
- Hosting information sessions, at least annually, with Supply Nation to promote its search tools and initiatives
Communications
Raising awareness and increasing support for Aboriginal and Torres Strait Islander businesses will be assisted by:
- Regularly communicating IPP requirements, including the mandatory set-aside and Mandatory Minimum Requirements, through internal channels
- Promoting and maintaining a dedicated Indigenous Procurement page on the staff intranet as a central information hub
- Sharing internal news updates to promote Supply Nation events and celebrate Indigenous supplier success stories
Procurement goals
The Government has committed to supporting the growth of Aboriginal and Torres Strait Islander Small to Medium Enterprise (SME) by:
- Encouraging and promoting procurement from these businesses for contracts valued between $10,000 and $80,000, to extend the reach of the IPP mandatory set-aside ($80,000 to $200,000)
- Reporting twice a year on the Department of the Prime Minister and Cabinet (PM&C) annual portfolio targets under the IPP
- Encouraging the use of Appendix A Exemption 16 in the Commonwealth Procurement Rules to facilitate limited tender approaches to Aboriginal and Torres Strait Islander SMEs when appropriate
“The primary purpose of the Government’s Indigenous Procurement Policy is to stimulate Indigenous entrepreneurship and business development, providing Aboriginal and Torres Strait Islander peoples with more opportunities to participate in the economy,” said a statement from the Department of the Prime Minister and Cabinet.
“The PM&C Reconciliation Action Plan 2024-27 sets out our commitment to increase business opportunities for Aboriginal and Torres Strait Islander suppliers. This can be achieved through strong leadership, positive behaviours, increased opportunities, awareness raising, communications and procurement goals to increase engagement and contracts awarded to Aboriginal and Torres Strait Islander businesses.
“This Strategy represents PM&C’s commitment and approach to delivering IPP outcomes as well as contributing to achieving procurement related deliverables under the PM&C’s Reconciliation Action Plan Innovate 2024-27.”
