The IPP is a mandatory procurement-connected policy under the legislative instrument of the Commonwealth Procurement Rules.
The purpose of the Indigenous Procurement Policy (IPP) is to leverage the Commonwealth’s annual multi-billion procurement spend to drive demand for Indigenous goods and services, stimulate Indigenous economic development and grow the Indigenous business sector.
The IPP was launched on 1 July 2015 and has three main parts:
A target number of contracts that need to be awarded to Indigenous businesses.
A mandatory set-aside for remote contracts and contracts valued between $80,000 - $200,000.
Minimum Indigenous participation requirements in contracts valued at or above $7.5m in certain industries.
Exemption 17 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.