| GUIDE 1 | GUIDE FOR PROCURING OFFICIALS AND CONTRACT MANAGERS
NIAA | Guide 1 | Guide for procuring officials and contract managers
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Indigenous Procurement Policy
Indigenous participation in high value Government contracts ($7.5million or more)
Guide 1
Procuring officials and contract managers
Document history
Version
Date approved
Approver
Version 1
26 June 2020
Neil Williams, Branch Manager
Economic and Business Policy
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Indigenous Procurement Policy
A guide for procuring officials and contract managers
This guide
This guide aims to help Commonwealth procurement officials and contract managers conduct
procurement activities that are subject to mandatory minimum requirements (MMR) under the
Indigenous Procurement Policy (IPP).
This is one of several guidance documents designed to support the application of the MMR to high
value contracts at each stage of the procurement life-cycle.
These documents should be read in conjunction with the IPP’s overarching policy document – the
Indigenous Procurement Policy.
Further information is available on the NIAA website
IPP Policy Framework
Guide One
Procuring officials and
contract managers
Guide Four
How to use the IPP
Reporting Solution
Guide Two
Suppliers
Guide Five
Model Clauses
Guide Three
Indigenous businesses
Indigenous Procurement Policy
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Table of contents
Glossary...............................................................................................................................................................................................5
1.0 The Indigenous Procurement Policy (IPP) .......................................................................................................................7
2.0 Mandatory minimum requirements (MMR) for Indigenous participation .........................................................................7
2.1 Determining whether MMR apply to a procurement ......................................................................................................8
2.2 Requirement to estimate the value of a procurement ...................................................................................................8
3.0 MMR targets.............................................................................................................................................................................. 13
3.1 Minimum targets for remote procurements ................................................................................................................... 14
3.2 Minimum targets for non-remote procurements ........................................................................................................... 15
3.3 Counting employment and supply-use against targets .............................................................................................. 15
4.0 Procurement documentation ............................................................................................................................................... 17
4.1 Model Clauses...................................................................................................................................................................... 17
4.2 Indigenous Participation Plan ........................................................................................................................................... 17
4.3 Tender submission documents .......................................................................................................................................... 19
4.4 Approaches to market for contracts of varying value ............................................................................................. 19
5.0 Evaluating tender responses to the MMR ........................................................................................................................... 20
5.1 Assessing a significant outcome in remote Australia. ................................................................................................... 21
5.2 Assessing an Indigenous Participation Plan .................................................................................................................... 21
5.3 Assessing current rates of Indigenous participation ...................................................................................................... 22
5.4 Assessing past performance information ........................................................................................................................ 22
6.0 Panel and other arrangements ............................................................................................................................................ 23
6.1 Applying the MMR when establishing a new panel or cooperative arrangement that will award official orders
of $7.5 million or more. .............................................................................................................................................................. 23
6.2 Applying MMR to official orders ........................................................................................................................................ 23
7.0 Contracting .............................................................................................................................................................................. 23
8.0 Publishing the contract ........................................................................................................................................................... 23
9.0 Contract Management .......................................................................................................................................................... 24
9.1 Reporting obligations .......................................................................................................................................................... 24
9.2 Monitoring progress ............................................................................................................................................................. 25
9.3 Verifying information ........................................................................................................................................................... 25
9.4 Final compliance assessment, contract end ................................................................................................................. 26
10.0 Contract variations................................................................................................................................................................ 26
10.1 Varying a contract that is already subject to MMR .................................................................................................... 26
10.2 Varying a contract to increase the value of the contract above the $7.5 million threshold ............................. 27
11.0 Further assistance .................................................................................................................................................................. 27
12.0 Resources .......................................................................................................................................................................... 28
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Glossary
AusTender has the same meaning as in the Commonwealth Procurement Rules.
Approach to market (open) has the same meaning as in the Commonwealth Procurement Rules.
Commonwealth entity has the same meaning as set out in the Public Governance, Performance and
Accountability Act 2013.
Commonwealth Procurement Rules (CPRs) mean the rules issued by the Minister for Finance under section
105B (1) of the Public Governance, Performance and Accountability Act 2013.
Cooperative procurement arrangement means an optional panel arrangement that non-corporate
Commonwealth entities may use to approach the market together for the purposes of reducing
expenditure by sharing administration costs. The Mandatory Set Aside (MSA) must be applied prior to a
cooperative procurement arrangement is considered. An Indigenous business may also be contracted
outside of this arrangement using Exemption 16 to Division 2 of the Commonwealth Procurement Rules.
Coordinated procurement arrangement means a panel arrangement established for commonly used
goods or services by the Commonwealth. Once established, a coordinated procurement arrangement is
mandatory for non-corporate Commonwealth entities to use. As a coordinated procurement
arrangement forms part of Division 1 of the Commonwealth Procurement Rules, Exemption 16 and the
MSA cannot be applied. The MMR may apply to coordinated procurement arrangements. A list of
mandatory coordinated procurement arrangements is available on the Department of Finance website
.
Corporate Commonwealth entity has the same meaning as set out in the Public Governance,
Performance and Accountability Act 2013.
Contract is an arrangement, as defined by section 23(2) of the PGPA Act, for the procurement of goods
and/or services under which relevant money is payable or may become payable. Note: this includes
standing offers and panels
Contract manager is responsible for oversight of the contract including compliance, financial aspects
and ensuring reporting requirements are met.
Contractor Portal means the online reporting system used by suppliers to report their performance against
contracts that contain the MMR. This is the external face of the IPP RS as defined below.
Exemption 16 of the Commonwealth Procurement Rules means a procurement of goods and services
from an SME with at least 50 per cent Indigenous ownership.
High Value Contracts means contracts delivered in Australia valued at $7.5 million (GST inclusive) or more
in specified sectors, and subject to Mandatory Minimum Indigenous Participation Requirements (MMR),
as defined below.
Indigenous Procurement Policy (IPP) helps stimulate Indigenous entrepreneurship and business
development, providing Indigenous Australians with more opportunities to participate in the economy.
The IPP is a procurement connected policy under the Commonwealth Procurement Rules (CPRs).
Indigenous Procurement Policy Reporting System (IPPRS) means the online reporting system used to
record and track data on IPP contracts. The system is managed by the NIAA.
Indigenous small or medium enterprise (Indigenous SME) means an Indigenous enterprise that meets the
definition of SME in the Commonwealth Procurement Rules.
Indigenous Participation Plan means the document that must be submitted by organisations tendering
for contract that are subject to the Mandatory Minimum Indigenous Participation Requirement.
Tenderers outline in the Plan how they intend to meet (or exceed) Indigenous employment and or supply
use targets over the contract term. The Plan assists procuring officials to determine which tenderer is most
likely to achieve the strongest economic outcomes for Indigenous Australians.
MMR means mandatory minimum Indigenous participation requirements.
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MSA means mandatory set aside, The MSA applies to procurement delivered in remote Australia and
procurement valued between $80,000 to $200,000, with the exception of procurement made using a
credit card in remote Australia or procurements covered by a coordinated arrangement.
Model Clauses are provided as examples of text that should be included in material for an Approach to
Market or Contract terms where the entity determines that the IPP is applicable.
NIAA means the National Indigenous Australians Agency, the Commonwealth agency with responsibility
for administering the Indigenous Procurement Policy.
Non-corporate Commonwealth entity has the same meaning as set out in the Public Governance,
Performance and Accountability Act 2013.
Panel arrangement means a selected number of suppliers appointed through a contract or deed of
standing offer that a Commonwealth entity can approach to procure regularly required goods or
services. Panel arrangements are either coordinated or cooperative procurements (see definitions
above).
Portfolio means the portfolios identified in the Australian Government Organisations Register
.
Procuring official means a Commonwealth official that has responsibility for purchasing a good or service
on behalf of a Commonwealth entity.
Potential supplier is an entity or person who may respond to an approach to market.
Remote area means the areas identified in the Remote Indigenous Procurement Policy (RIPP) map on the
NIAA website, as updated from time to time.
Remote contract means a contract where the majority (by value) of the goods or services will be
delivered in a remote area.
Remote procurement means a procurement exercise for a remote contract, as per section 3.1 of this
guide.
Small and medium-sized enterprise (SME) has the same meaning as in the Commonwealth Procurement
Rules.
Supplier is an entity or person who has entered into a contract with the Commonwealth.
Tender (open) involves publishing an open approach to market and inviting submissions. This includes
multi-stage procurements, provided the first stage is an open approach to market,
Tenderer is an entity or person who has responded with a submission to an approach to market.
United Nations Standard Products and Services Code (UNSPSC) is an open, global, multi-sector standard
for the classification of products and services. Use of UNSPSC enables analysis of Australian Government
procurement activity from approach to outcome by sector and across government.
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1.0 The Indigenous Procurement Policy (IPP)
The primary purpose of the IPP is to stimulate Indigenous entrepreneurship and business development,
providing Indigenous Australians with more opportunities to participate in the economy.
Prior to the implementation of the policy on 1 July 2015, Indigenous enterprises secured limited business
from Commonwealth procurement. The policy is intended to drive a significant increase the rate of
purchasing from Indigenous enterprises, helping to drive Indigenous economic development.
The IPP applies to procurements made on behalf of non-corporate Commonwealth entities. If the
procurement activity is subject to the Commonwealth Procurement Rules, it is likely subject to the IPP.
Corporate Commonwealth entities are encouraged to use best endeavours to apply the IPP. The IPP
does not apply to Commonwealth grants.
2.0 Mandatory minimum requirements (MMR) for
Indigenous participation
To ensure Indigenous Australians have the opportunity to participate in the delivery of high-value
Australian Government contracts, the IPP sets the minimum threshold for Indigenous participation in
certain procurements. These are known as mandatory minimum requirements or MMR. MMR apply to
procurements valued at $7.5 million or more (GST inclusive) that are delivered wholly in Australia and fall
within specific industry sectors (see the MMR checklist at Table 1).
Once a Commonwealth procuring official or contract manager has established that MMR apply to a
procurement, they are required to consider:
First, at the approach to market stage, the procuring official must advise tenderers of their
obligations under the IPP. This includes that tenderers need to provide details of the current levels of
Indigenous participation within their organisation, a history of past performance against MMR
targets and a commitment to achieving Indigenous participation outcomes throughout the
delivery of the contract as part of their tender submission.
The procuring official must consider this information as part of the tender evaluation process.
During contract negotiations, the procuring official or contract manager must agree Indigenous
participation targets with the supplier in line with MMR and include these in the contract. Targets
should reflect an agreed level of Indigenous employment (workforce), or an agreed level of
Indigenous businesses participation (supplier-use), or a combination of both, over the life of the
contract. These targets should be applied to the contract itself or the supplier’s Australian-based
supply chain and or workforce (information on determining targets is at Section 3).
Over the life of the contract, the contract manager must monitor the supplier’s progress against the
agreed target by assessing and acknowledging performance reports in the Indigenous
Procurement Policy Reporting System (IPPRS).
At the conclusion of the contract, the contract manager must provide a final compliance
assessment of the supplier through the IPPRS.
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2.1 Determining whether MMR apply to a procurement
Table 1. MMR Checklist
Procurements subject to MMR
Procurements NOT subject to MMR
1*
The procurement is subject to the
Commonwealth Procurement Rules
(CPRs)
The procurement is subject to paragraph 2.6 of
the CPRs (paragraph 2.6 deals with activities
relating to international peace and security,
human health, essential security interests and
national treasures).
2*
The procurement is estimated to be $7.5
million or more (inc GST) which includes
options, extensions, renewals or other
mechanisms that may be executed
over the life of the contract. (refer 2.2
on Section 9 of the CPRs)
The procurement falls within sub-category
exemptions listed in Figure 2 or a non-prescribed
UNSPSC category.
3*
All the goods and services will be
delivered wholly within Australia.
The goods and services will be delivered overseas
in whole or in part.
4*
The majority of the procurement is
expended in one or more of the 19
specified industry categories as listed in
Figure 1.
The contract is valued less than $7.5 million (GST
inclusive) or less than half the value of the contact
falls within the 19 specified industry categories.
Note: A contract variation that increases the
value of a contract above the $7.5 million
threshold may result in the contract becoming
subject to the MMR where the contract contains
appropriate clauses or supplier agrees to
voluntarily meet the MMR (refer to Section 10)
5
Coordinated or cooperative
procurement arrangements in place
after 1 July 2016
Is subject to a coordinated or cooperative
procurement arrangements established prior to 1
July 2016.
* Your procurement is subject to the MMR if all the first 4 conditions are met.
2.2 Requirement to estimate the value of a procurement
The CPRs state that when the maximum value of a procurement over its entire duration cannot be
estimated, the procurement must be treated as being valued above the relevant procurement
threshold. The procurement threshold in this case is $7.5 million GST inclusive.
Please see below for information on the requirement to estimate the value of a procurement as at June
2020. For the latest information, go to Department of Finance website.
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Commonwealth Procurement Rules, Section 9
9.2 The expected value of a procurement must be estimated before a decision on the
procurement method is made. The expected value is the maximum value (including GST) of the
proposed contract, including options, extensions, renewals or other mechanisms that may be
executed over the life of the contract
9.3 The maximum value of the goods and services being procured must include: All forms of
remuneration, including any premiums, fees, commissions, interest, allowances and other
revenue streams that may be provided for in the proposed contract; the value of the goods
and services being procured, including the value of any options in the proposed contract; and
any taxes or charges.
9.4 When a procurement is to be conducted in multiple parts with contracts awarded either at the
same time or over a period of time, with one or more suppliers, the expected value of the
goods and services being procured must include the maximum value of all of the contracts.
9.5 A procurement must not be divided into separate parts solely for the purposes of avoiding a
relevant procurement threshold.
9.6 When the maximum value of a procurement over its entire duration cannot be estimated the
procurement must be treated as being valued above the relevant procurement threshold.
Further guidance is available in the Commonwealth Procurement Rules.
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Figure 1. Industry sectors subject to MMR
Code Industry Category
64 financial instruments, products, contracts and agreements
70 farming and fishing and forestry and wildlife
71 mining and oil and gas services
72 building and facility construction and maintenance services
73 industrial production and manufacturing services
76 industrial cleaning services
77 environmental services
78 transportation, storage and mail services
80 management and business professionals and administrative services (sub-category
exemptions apply)
81 engineering and research and technology-based services
82 editorial and design and graphic and fine art services
84 financial and insurance services (sub-category exemptions apply)
85 healthcare services
86 education and training services
90 travel and food and lodging and entertainment services
91 personal and domestic services
92 national defence and public order and security and safety services (sub-category
exemption apply)
93 politics and civic affairs services
94 organisations and clubs
These sectors are determined by the United Nations Standards Products and Services Codes
(UNSPSC) which is an open, global, multi-sector standard for efficient accurate classification of
products and services for buying, selling or otherwise exchanging goods and services in the global
marketplace.
The UNSPSC is used for reporting procurement activity across the Australian Government, including
under the IPP. The UNSPSC is used by entities to decide whether a contract must meet MMRs.
To find out more, refer to the NIAA website: www.niaa.gov.au/resource-centre/indigenous-
affairs/united-nations-standard-products-and-service-codes
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Figure 2. The following are listed as sub-category exemptions from using the MMR
80131500 Lease and Rental of property or building
80131501 Land Leases
80131503 Residential leases
84130000 Insurance and retirement services
84131800 Retirement funds
92110000 Military services and national defence
92111700 Military science and research
Figure 3. Accessing the UNSPSC codes to confirm goods and services are subject to
MMR
The codes can be accessed at www.unspsc.org.
Non-members can access codes via the ‘Search-Code’ tab or by downloading a free pdf list of up-to-date
codes from the ‘Code set-Downloads’ tab.
The easiest way to find a code is to search the code set online at https://www.unspsc.org/search-code.
A useful feature of the search the code function is to use “%” as a wild card. This can be used for the ‘Search
Code’ field and ‘Search Title’ field.
As an example: to find a complete listing of all codes starting with 72 (Building and Facility Construction and
Maintenance Services), enter ‘72%’ in the Search Code field. The result returned is five pages of possible codes
within this Industry sector range. All codes resulting from this search will apply to MMR contracts.
Searching the ‘Title’ field will find the most appropriate 8 digit code to use for a particular good or service.
Entering ‘building%’ in the title field returns a list of codes for goods or services that start with ‘building’. Note
results from this search may include categories that are not applicable to MMRs.
Entering ‘%building%’ in the title field returns a list of codes for goods and services that include ‘building’ in the
title. Note results from this search may include categories that are not applicable to MMRs
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Example 1. Confirming whether goods and services fall within the 19 specified
industry categories
John was undertaking a procurement to acquire translation services. On looking at the 19 specified
Industry categories subject to the MMR, John was not sure that translation services would fall under a
category.
As John wanted to be sure, he undertook a search on the UNSPSC website. Using the “Title” field,
John searched translation services and found that it fell under 82 – editorial and design and graphic
and fine art services, and was therefore subject to the MMR.
Figure 4. AusTender
A portfolio’s procurement team receives an alert from the IPP Reporting System (IPPRS) when a
contract published on AusTender fits the MMR criteria. It is important that information published on
AusTender contains the correct fields to enable this team to easily identify the area responsible for
managing the contract.
Figure 5. Voluntarily applying the MMR
A Commonwealth entity may choose to voluntarily apply the MMR to any procurement and require
suppliers to report using the IPPRS. The entity representative – such as the procuring official or
contract manager – must flag the contract as a voluntary MMR within the IPPRS. Making use of the
IPPRS will also ensure that contracts reported by suppliers are counted against a portfolio’s IPP target.
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3.0 MMR targets
MMR targets for Indigenous employment or supply-use are applied to the work associated with delivering
the contract (contract-based) or the supplier’s organisation (organisation-based). If a contract is
delivered in remote Australia, the targets must reflect a significant employment or supply-use outcome
for Indigenous people in that area.
Procuring officials must advise all tenderers of their MMR obligations at the approach to market stage.
The Commonwealth entity has the option to:
• determine the MMR target before the approach to market and require tenderers to demonstrate
their ability to meet the targets in their Indigenous Participation Plan; or
• allow tenderers to propose their targets and demonstrate their ability to meet them in their
Indigenous Participation Plan and assess these as part of the evaluation.
To support this requirement, NIAA has developed model clauses
- pre-drafted contract terms that can be
used within existing contract templates as appropriate.
The Department of Finance’s also maintains a general clause bank.
Table 2. MMR Targets
Employment
Supply
Combined
Remote contract-
level target
A significant
employment outcome.
This must be greater
than 4 per cent
Indigenous
employment (on
average) of the full
time equivalent
Australian-based
workforce deployed on
the contracted project
(by the end of the
contract term). See
section 3.1 for more
detail.
A significant supply use
outcome. This must be
greater than 4 per cent of
the value of the goods
and services provided
under the contract must
be awarded to
Indigenous enterprises
(by the end of the
contract term). See
section 3.1 for more
detail.
A significant Indigenous
participation outcome. This
must be greater than 4 per
cent.
The Employment and
Supply target in total is
greater than 4 per cent (by
the end of the contract
term). See section 3.1 for
more detail.
Organisation-level
target
3 per cent Indigenous
employment (as a
weighted average) of
the full time equivalent
Australian-based
workforce of the
supplier (by the end of
the contract term). See
Section 3.2.2 for more
details.
3 per cent of the value of
the supplier’s Australian
supply chain must be
awarded to Indigenous
enterprises (by the end of
the contract term). See
section 3.1 for more
detail.
Employment and Supply
target total in value to 3
per cent (by the end of the
contract term).
For example: a 2 per cent
Indigenous employment
outcome and a 1 per cent
Indigenous supplier-use
outcome delivers a
combined outcome of 3
per cent. See section 3.1
for more detail.
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Non – remote
contract-level
target
4 per cent Indigenous
employment (as
weighted average) of
the full time equivalent
Australian-based
workforce deployed on
the contracted project
(by the end of the
contract term). See
Section 3.2.1 for more
detail.
4 per cent of the value of
the goods and services
provided under the
contract must be
awarded to Indigenous
enterprises (by the end of
the contract term). See
Section 3.2.1 for more
detail.
The Employment and
Supply target total 4 per
cent (by the end of the
contract term).
For example: a 1 per cent
Indigenous employment
outcome and a 3 per cent
Indigenous supply-use
outcome delivers a
combined outcome of 4
per cent. See Section 3.2.1
for more detail.
3.1 Minimum targets for remote procurements
Where a component of a contract will be delivered in remote Australia, the MMR must deliver a
significant Indigenous employment or supply use outcome by the end of the contract term. At a
minimum, the target must exceed 4 per cent (4%) of the value of the contract. Section 3.1.3 will help
determine an appropriate target for a remote contract in line with MMR.
3.1.1 Determining the remote component of a contract
Remote Australia has a unique definition under
the IPP, it includes highly populated cities and
towns such as Darwin, Broome and Alice Springs
as well as sparsely populated regions like
Central Australia. The NIAA maintains an
interactive map that allows users to search
Australia by location to determine whether an
area is remote:
www.niaa.gov.au/resource-
centre/indigenous-affairs/ripp-map-data.
3.1.2 Identifying the delivery point
To determine if a component of a procurement
is remote the procuring official will need to
identify whether the delivery point for the goods
and services falls within the IPP remote
boundary.
For goods, the delivery point is where the
procuring official assumes control of the goods. For a service, the delivery point is where the procuring
official receives the service, even if the end user of the service is located elsewhere.
3.1.3 Determining a significant Indigenous outcome in a remote contract
The procuring official must agree a MMR target with the preferred tenderer that will ensure a significant
Indigenous employment or supplier use outcome. The contract manager may also wish to be part of this
discussion. The procuring official and/or the contract manager may wish to consider:
• Local employment market conditions such as the number of Indigenous businesses, workers and
job seekers in the region and the relevant skills, qualifications and capabilities of the cohort.
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• The requirements of the contract such as the skills and capabilities required to deliver the goods
and services including the value and scale and size of the contract.
• The availability of supply services to support the meeting of any targets and assist in building the
capacity of Indigenous businesses and job-seekers to take up opportunities.
• Other government projects operating in the region that may impact on the capacity of Indigenous
businesses and job-seekers to take up opportunities over the contract term. Commonwealth
contracts active in the region can be identified through the IPPRS.
3.2 Minimum targets for non-remote procurements
The targets for non-remote procurements may be determined by the Commonwealth entity at the
approach to market stage or negotiated by the procurement official or contract manager and the
supplier during contract negotiations.
Attachment A provides case studies for contract based and organisation based targets
3.2.1 Contract-based targets
A non-remote contract-based target must be, by the end of the initial term of the contract, a minimum
of 4 per cent (4%). This means that:
• 4 per cent of the full-time employees deployed on the contract must be Indigenous workers; or
• 4 per cent of the value of the contract must be awarded to Indigenous suppliers; or
• any combination of the above that adds up to 4 per cent (for example 3% employment and 1%
supplier use).
3.2.2 Organisation-based targets
A non-remote organisation-based MMR must be, by the end of the initial term of the contract, a
minimum of 3 per cent (3%). This means that:
• 3 per cent of employment (on average) of the full time
equivalent Australian-
based workforce of
the
supplier or.
• 3 per cent of the value of the supplier’s Australian supply chain must be awarded to
Indigenous
enterprises or
• any combination of the above that adds up to 3 per cent (for example 2% employment and 1%
supplier use).
Organisations may have organisation-based MMR targets within multiple contracts with Commonwealth
entities. The organisation will only need to report their organsiation’s employment and supply chain data
once every quarter via the IPPRS. The IPPRS will automatically attribute this data against each contract to
support contract managers and suppliers assess compliance against the IPP target.
3.3 Counting employment and supply-use against targets
3.3.1 Employment
Contract
A supplier’s progress against employment targets are assessed by the number of hours an Indigenous
person works for the supplier over the term of the contract in relation to the supplier’s total workforce,
expressed as full-time equivalent (FTE) and assessed as a weighted average. To calculate the average,
suppliers report quarterly on the total number of Indigenous FTE deployed on the contract and the total
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number of non-Indigenous FTE deployed on the contract for that quarter. This ensures Indigenous
Australians have access to meaningful employment over the life of the project.
A supplier’s final performance against employment targets at the end of the contract term is calculated
using the total number of Indigenous FTE divided by the total number of FTE reported by the supplier.
Organisation
A supplier’s progress against organisation-based MMR employment targets is calculated using the
average number of hours an Indigenous person has worked to deliver on the contract. To calculate the
weighted average, suppliers report quarterly on the total number of Indigenous FTE employed by the
organisation and the total number of FTE employed by the organisation in Australia each quarter.
At the end of the initial term the IPPRS will calculate the weighted average FTE by adding the total
number of Indigenous FTE and the total number of non-Indigenous FTE reported by the supplier each
quarter and dividing by the number of quarters over the initial term to find the weighted average.
Where the supplier has multiple contracts that contain organisation based MMR contracts (that contain
different start and end dates) the supplier will only need to report once each quarter. The IPPRS will use
the date ranges of the quarterly report and the start and end date of associated contracts to allocate
the workforce data accordingly. This is important as each contract is assessed against the average
weighted FTE employed over the term of each individual contract.
It is important to note: the hours associated with an FTE will differ between industries. The supplier should
report the FTE as defined by their industry. If multiple awards are in place, the supplier should use the FTE
rate that is most representative of their workforce.
3.3.2 Supply-use
Contract-based
For contract-based MMR targets, the supplier may report any subcontract or purchase made with an
Indigenous business that is directly related to delivery of the contract.
Each quarter the supplier will report the details of the Indigenous business that they have contracted with
or purchased with that quarter through the IPPRS. At the end of the contract term, the total value of
contracts and purchases awarded to an Indigenous business will be measured as a percentage against
the value of the contract to determine if the MMR target was met.
Organisation-based
For organisation-based MMR supply use targets the supplier reports each quarter the total value of their
Australian supply chain and value of contracts awarded to Indigenous businesses. The IPPRS measures as
a percentage against the organisation’s Australian supply chain.
Where the supplier has multiple contracts that contain organisation based MMR contracts (that contain
different start and end dates) the supplier will only need to report once each quarter. The IPPRS will use
the date of the purchase and the start and end date of associated contracts to allocate the supply use
data accordingly. This is important as each contract is assessed against the average value of Indigenous
supply use against the value of the organisation’s total Australian supply chain over the term of that
contract.
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4.0 Procurement documentation
For procurements subject to the MMR, procuring officials must inform potential suppliers of their
contractual obligations at the approach to market stage. This information will inform tender submission
documents, which will be assessed in line with MMR requirements at the evaluation stage and then
feature in the final contract. At each stage of the procurement process, procuring officials and/or
contract managers should have regard to the conditions of the MMR. This section outlines the tools that
will help procuring officials and suppliers comply with those conditions.
4.1 Model Clauses
The NIAA has prepared pre-drafted content (known as model clauses) for procuring officials and/or
contract managers to include in the approach to market document and draft contract (if applicable) to
ensure tenderers are accountable to the requirements of the IPP should they be successful in winning the
contract. This information must also be included in the final contract, subject to any negotiations.
The IPP model clauses
provide the following content:
• MMR employment and supply-use targets as determined by the policy
• the tenderer’s obligation to prepare an Indigenous Participation Plan (see 4.2), including the plan
to achieve significant Indigenous participation outcomes in remote Australia (as appropriate)
• the supplier’s obligation to report via the IPPRS on a quarterly basis
• notification that information related to the MMR is not subject to the confidentiality provision and
details of the contract may be published on the NIAA website.
If a procuring official plans to approach an Indigenous businesses using Exemption 16 of the CPRs, the
approach to market documentation should include clauses that require the business to declare
themselves as an Indigenous business and require that business to notify the contract manager in the
event that ownership of the business changes during the term of the contract. There is a model clause to
assist with this.
4.2 Indigenous Participation Plan
The Indigenous Participation Plan, prepared as part of a potential supplier’s tender submission, should
outline how they intend to meet the MMR over the life of the contract.
Procuring officials undertaking procurement from a standing offer or panel arrangement (where MMR
have been identified in the Deed of Standing Offer) must ask the supplier/panel member to provide an
Indigenous Participation Plan and details of their organisation’s past compliance with MMR when the
value of the contract meets MMR criteria. For all other procurements, the plan must be requested as part
of the approach to market process.
Table 3
The Indigenous Participation Plan should include:
Notes
Clear indication of whether the supplier will meet
contract-based (4%), organisation-based (3%) or
remote contract-based participation requirements
(>4%).
The supplier may choose any of these options or the
awarding entity may provide direction on the target in the
ATM documents,
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Table 3
The Indigenous Participation Plan should include:
Notes
Clear indication of whether the percentage target
for Indigenous participation will be met through
employment or supply use or a combination of
employment and supply use.
The supplier may choose any of these options or the
awarding entity may provide direction on the target in the
ATM documents.
A commitment to Indigenous employment. • Clearly identify roles for Indigenous Australians and the
skills required for these roles. Where possible, the majority
of the roles should be central to the goods/services
being delivered and located within local communities
• Identify ways to source suitable Indigenous candidates
where needed, for example though collaboration or
memoranda of understanding with Commonwealth
employment service providers such as Vocational
Training and Employment Centres (VTECs), Community
Development Program (CDP) and Job Active available
at jobsearch.gov.au; consulting with local Indigenous
community controlled organisations available at the
ORIC database; and/or advertising through Indigenous
owned media outlets, and/or hosting community
information sessions.
• Identify ways to retain and train Indigenous candidates
for the role and ongoing development, for example a
mentoring or professional development programme for
Indigenous employees and a commitment to building a
cultural capability within the workplace, which may
include working with Reconciliation Australia to agree a
Reconciliation Action Plan.
A commitment to Indigenous supply use. • Clearly identify opportunities for Indigenous businesses in
their supply chain.
• Methods for identifying Indigenous businesses and clear
communicating opportunities, including: supplier diversity
programs, business mentoring programs; assessing local
Indigenous capability; consulting Supply Nation’s
Indigenous Business Direct and other Indigenous business
databases; hosting community information sessions.
A commitment to significant participation of
Indigenous workers and businesses in contacts
delivered in remote Australia.
• Where the contract will be delivered in a remote area/s,
clearly identify ways to achieve 'significant' (as a
percentage) Indigenous employment and/or supplier
use with regard to local Indigenous business sector and
employment market.
• The plan should specify an employment target
considerate of the proportion of working age Indigenous
people in the area (using the Australian Bureau of
Statistics as a guide)
• Supply target: This could include identifying indigenous
businesses that they will sub-contract in the delivery of
the project.
• For large procurements with multiple tenders, it is
important to consider the impost posed on small
organisations to agree MoUs and collaborative
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Table 3
The Indigenous Participation Plan should include:
Notes
agreements with multiple tenderers where only one will
ultimately be contracted.
• The tenderer could demonstrate an existing relationship
with the local stakeholder groups such as CDP providers,
Land and Sea Councils, and local Indigenous community
controlled organisations (see tip box below) or commit to
develop a work relationship with specified stakeholders
by a certain date if successful.
• Supply target: This could include identifying indigenous
businesses that they will sub-contract in the delivery of
the project.
4.2.1 Finding a local Indigenous controlled organisation
There are links at the Resources Section12.0 that will assist with finding a local Indigenous-controlled
organisation.
4.3 Tender submission documents
To demonstrate their awareness of, and ability to meet the MMR as outlined in the approach to market
documentation, tenderers must include the following information in their tender submission:
• details of the current levels of Indigenous participation (employment or supply-use) in their
Australian-based organisation
• a declaration of their performance against targets for any previous contracts that included
MMRs*;; and
• an Indigenous Participation Plan detailing the MMR target that they will achieve over the life of the
contract and their strategy for achieving this. Table 3 outlines the information that tenderers should
include in an Indigenous Participation Plan.
*Commonwealth entities should search the IPPRS for a tenderer’s past performance information.
4.4 Approaches to market for contracts of varying value
If a procurement may result in multiple contracts of varying value – with the initial contract lower or
higher than the $7.5 million threshold - it is recommended the approach to market documentation
(including draft contract where applicable) includes a clause that grants tenderers the option to not
submit an Indigenous Participation Plan if they are not intending to accept a contract above the MMR
threshold.
The clause, available on NIAA’s website, will only require the supplier to submit an Indigenous
Participation Plan in the event the contract value increases above the $7.5 million threshold. The clause
will also encourage the use of best endeavours to informally increase Indigenous participation in the
delivery of the contract.
For information on varying contracts, refer to Section 10.
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Example 2. Procurements with unknown values
The Department of Veteran Affairs approaches the market to engage potential suppliers to provide hearing devices to
eligible veterans on demand over a 5 year period across the country. At the time of the approach to market, DVA
estimates the total value of this procurement will be $15 million but is unsure what the demand from veterans for new
hearing devices will be in regional and remote locations over the 5 year period or how many tenderers will submit
competitive bids. It is expected that the value of the contract will exceed $7.5 million in some urban areas but could be
as low as $180,000 in regional areas.
TENDERER 1
Tenderer 1 is a small business that is interested in a contract to service a small region in NSW. The tenderer does not
expect to be able to supply more than $1.2 million in hearing equipment and services over the 5 year period. The
tenderer elects not to be considered for more than $7.5 million in work and does not submit an Indigenous Participation
Plan at the time of tender.
Tenderer 1 is awarded a contract valued at $1 million and signs the contract agreeing to use their best endeavours to
increase Indigenous participation in the delivery of the contract. The tenderer contacts the local VTEC and CDP provider
to express an interest in hiring Indigenous job seekers and searches Supply Nation database for businesses they could
engage with in the future work.
TENDERER 2
Tenderer 2 is a medium sized business based in Townsville and is keen to win as much work as possible through the
tender.
Tenderer 2 is awarded a contract valued at $6 million (GST inclusive).
The contract contains best endeavours clauses for Indigenous participation. During the first year of the contract,
tenderer 2 accepts a contract variation that increases the total value of the contract to $7.8 million (GST inclusive).
The contract manager does not request the supplier to submit an Indigenous Participation Plan, noting that the
variation has only brought the total value of the contract to a value marginally above the $7.5 million threshold.
However, the contract manager and supplier discuss options to encourage Indigenous participation, including ways to
involve Townsville’s Indigenous business sector in the operations of Tender 2’s business. .
TENDERER 3
Tenderer 3 is a small business in a metro area and is also keen to win as much work as possible through the tender. The
tenderer submits an Indigenous Participation Plan. The tenderer is awarded a contract valued at $5 million (GST
inclusive).
The contract contains best endeavours clauses for Indigenous participation. In the second year of the contract, the
tenderer accepts a contract variation that increases the total value of the contract to $9 million (GST inclusive). The
contract manager notes that, as the value of the contract is now above the $7.5 million threshold, they want to discuss
with the supplier opportunities for Indigenous participation over the next 4 years. Through an Indigenous Participation
Plan they agree to set a target of 4% of the value of the goods or services provided under the contract from the point of
the variation to Indigenous businesses.
5.0 Evaluating tender responses to the MMR
When evaluating tender submissions, procuring officials should consider each tenderer’s efforts to
implement workforce and supply chain management strategies that support sustained engagement with
Indigenous Australians.
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Tender responses that do not include an Indigenous Participation Plan, data on the tenderer’s current
level of Indigenous participation rates in their Australian-based organisation do not comply with the IPP.
A tenderer that has no past experience with MMR will not be disadvantaged by this. Their response will
be assessed on other actions it has taken in the past to increase Indigenous participation and on its
proposed Indigenous Participation Plan.
It is important that procuring officials and/or contract managers talk to their procurement teams for
specific advice on how their entity evaluates tenders including any weighting that should apply.
5.1 Assessing a significant outcome in remote Australia.
Indigenous people and businesses based in remote locations have less frequent access to the benefits of
Commonwealth procurement. It is therefore important that procuring officials and/or contract managers
require more from Indigenous Participation Plans, including higher targets, when a contract is delivered in
remote Australia.
To ensure that the benefits of Commonwealth procurement reach a remote area, targets should be
applied to the contract rather than the supplier’s Australian-based organisation (as typically an
organisation’s footprint is larger outside remote Australia).
When assessing the quality of an Indigenous Participation Plan with a remote component, the procuring
official and/or contract manager should review the extent to which factors detailed in Section 3.1.3 have
been demonstrated, and look to ensure:
• the MMR target is considerate of proportion of Indigenous people in the area (using the Australian
Bureau of Statistics as a guide) in the local population (and exceeds, at the very least, 4 per cent
for contract based targets)
• the tenderer has identified key stakeholder groups relevant to achieving employment and supply
use outcomes in the delivery of the program
• if they intend to apply employment targets, the tenderer plans to connect with a local community
development provider, or, if they intend to subcontract to Indigenous businesses, the tenderer
plans to connect with local business chambers, land councils and councils
• the tenderer’s commitment to building a culturally inclusive organisation demonstrated through a
commitment such as a Reconciliation Action Plan.
Information on the Indigenous population percentages is available on the
Australian Bureau of Statistics
website. The NIAA regional office network may also be of assistance. Details are located in the
Resources Section at 12.0.
5.2 Assessing an Indigenous Participation Plan
An Indigenous Participation Plan is a critical tool for procuring officials, contract managers and
tenderers/suppliers throughout the contract life-cycle. At the tender evaluation stage, the document
helps tenderers outline how they intend to meet (or exceed) MMR targets over the contract term, and
assists procuring officials to determine which tenderer is mostly likely to achieve the strongest economic
outcomes for Indigenous Australians. Throughout the contract term, the Indigenous Participation Plan will
help both parties manage and assess performance against MMR targets.
It is important that the Indigenous Participation Plan provides the procuring official and/or contract
manager with confidence about when and how the proposed level of Indigenous participation will be
achieved. The tenderer should identify who they intend to engage with, when and how they will engage
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with Indigenous job seekers and/or businesses and how they will support retention in their workforce and
supply chain throughout the life of the contract and potentially beyond.
Table 3 provides guidance for what should be included in an Indigenous Participation Plan. This is a guide
only; tenderers may include any content in their Indigenous Participation Plan that supports their tender.
5.3 Assessing current rates of Indigenous participation
If the current rate of Indigenous participation in an organisation is low, procuring officials and/or contract
managers should consider how the tenderer seeks to obtain the required knowledge and relationships to
engage and retain Indigenous Australians in their workforce and supply chain. An Indigenous
Participation Plan will be stronger if the tenderer identifies and seeks to make use of the resources and
tools listed below.
• Commonwealth providers such as jobactive, Community Development Program (CDP),
Vocational Training and Employment Centres (VTECs), ParentsNext;
• Commonwealth Indigenous Business and Employment Hubs in NSW and WA;
• local privately run labour Indigenous owned hire and recruitment companies with links to
Aboriginal and Torres Strait Islander job seekers;
• local Indigenous associations or Land Councils;
• local Indigenous Business Chambers;
• Reconciliation Australia
• Supply Nations or ORIC public directory;
• Indigenous media;
• government and or community led networking opportunities;
• cultural awareness and diversity training;
• development of a Reconciliation Action Plan.
Note: Section 12.0 Resources provides website links to assist with locating the above services.
If the tenderer has failed to meet employment targets in past MMR contracts procuring officials and/or
contract managers should consider whether the tenderer‘s proposed plan has measures in place to
ensure that they can attract and retain Indigenous workers. This could include reviewing the current rate
of Indigenous participation in their organisation.
5.4 Assessing past performance information
A tenderer’s past MMR performance information is contained in the IPPRS and is accessible via each
portfolio’s central procurement team.
A tenderer can also access their own information via the contractor portal in the IPPRS.
For assistance, contact NIAA at indigenousprocurement@niaa.gov.au.
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6.0 Panel and other arrangements
6.1 Applying the MMR when establishing a new panel or cooperative
arrangement that will award official orders of $7.5 million or more.
To support the establishment of a panel, approach to market documentation must specify that any
official order (contract) from the panel valued at $7.5 million or more will be subject to the MMR. Where
delivered in remote Australia, any official order (contract) subject to MMR must include the requirement
to achieve a significant outcome for Indigenous Australians.
Potential suppliers responding to an approach to market from a panel arrangement that is subject to
MMR must have the capacity to meet the MMR to be awarded a contract/work order/official order.
6.2 Applying MMR to official orders
Procuring officials undertaking a procurement from a standing offer or panel arrangement (where MMR
have been identified in the Deed of Standing Offer) must ask the supplier/panel member to provide an
Indigenous Participation Plan and details of their organisation’s past compliance with the MMR when the
value of the contract (or official order) meets the MMR criteria.
The Indigenous Participation Plan must demonstrate the supplier’s ability to meet the MMR target
including, if specified, in a remote area. The plan should be included as a contractual requirement in the
official order. NIAA has developed model clauses
to assist.
If an official order issued though a panel arrangement is valued at $7.5 million, and meets the other MMR
criteria, but the Head Agreement does not require the supplier to submit an Indigenous Participation
Plan, the procuring official and/or contract manager should encourage the supplier to use their best
endeavours to increase Indigenous participation over the delivery of the contract.
7.0 Contracting
In addition to the approach to market documentation and draft contract, the final contract must
contains clauses (see Section 4.1) requiring the following:
• the employment and supply use target (see section 3);
• an Indigenous Participation Plan (see section 4.2);
• the requirement to report on progress against the targets via the IPPRS each quarter (see Section
9.1);
• notification that information related to the MMR is not subject to the confidentiality provision and
may be published.
8.0 Publishing the contract
After the contract is published on AusTender, IPPRS uses the contract information to identify contracts
that are likely subject to the MMR. The IPPRS captures AusTender data relating to industry category,
contract start date, contract value and whether exemption 2.6 was applied.
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AusTender is unable to filter out contracts delivered overseas or where less than half the value of the
contract was awarded within the 19 specified industry categories. These will need to be filtered out of the
IPPRS by the relevant portfolio.
The day following the publication on AusTender, the IPPRS will issue an alert to the relevant portfolio’s
procurement team that a contract potentially subject to the MMR is ready for reporting. The
procurement team will contact the relevant policy or program area to initiate reporting through the
IPPRS. It is important that contract managers move quickly to confirm whether the contract is subject to
the MMR, and if it is detail the targets that have been agreed with the supplier and initiate the quarterly
reporting requirement from the supplier.
9.0 Contract Management
9.1 Reporting obligations
Suppliers are obliged to report quarterly on their progress against the MMR targets as outlined in their
Indigenous Participation Plan. Quarterly performance reports must be submitted via the IPPRS. For
guidance on using the IPPRS go to https://www.niaa.gov.au/ipprs
Reports must provide details of any participation by Indigenous businesses in the delivery of the contract.
This includes the total full time equivalent (FTE) Indigenous workforce for the quarter and total Indigenous
supply-use for the quarter. Table 4 outlines the details that contract managers and suppliers must enter
into the IPPRS.
Table 4
Contract manager reporting obligations
Supplier’s quarterly reporting obligations
• Agreed MMR targets
• Reporting start date
• Delivery postcode
• Suppliers’ contact details
• Acknowledgement that the contract manager
has reviewed the quarterly performance report
• Comments against the final performance report
Employment target: contract based
• FTE total workforce
• FTE Indigenous workforce
• Subcontractors FTE total workforce
• Subcontractors FTE Indigenous workforce
Employment target: organisation based
• FTE total Australian based workforce
• FTE Indigenous workforce
Supply-use target:
• Australian Business Number and name of
enterprise
• Value of contract/purchase
• Date of contract/purchase
• Description of goods/service purchased
• Whether the contract/purchase was awarded by
the supplier or by a subcontractor within their
supply chain (direct or indirect
contract/purchase)
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The IPPRS will cross reference the ABN with Supply Nation and ORIC databases to confirm a business is
verified as Indigenous owned.
The IPPRS will issue a reminder to the supplier and contract manager (as listed in the IPPRS) by email when
reports are due. Please ensure that the contact details of the person responsible for reporting are kept
up-to-date in the IPPRS. If entities use group email inboxes, using this inbox to receive reminders would
ensure that deadlines are not missed.
It is incumbent on the contract manager, to ensure suppliers submit the required report in a timely
manner. The contract manager should review all the information provided and follow up with the supplier
if targets are not being met.
9.2 Monitoring progress
While a supplier’s overall performance against MMR targets is not assessed until the end of the contract
(see Section 9.4), the IPPRS is a useful tool for contract managers and suppliers to monitor progress
throughout the life of the contract. The system can produce an assessment of performance to date at
any time, issue alerts if reports are overdue.
It is the responsibility of the contract manager to follow up with the supplier if progress is not tracking well
against targets or is unlikely to meet the MMR by the end of the contract.
There are a number of ways a contract manager can support a supplier that is struggling to meet the
MMR. These include:
• advise them to return to their Indigenous Participation Plan for strategies on how to move forward;
• ensure they are connected with local employment service providers, Indigenous community
controlled organisations, land and sea council and business chambers, such as Supply Nation.
• suggest they consider a contract variation if circumstances have changed (see Section 10.1 on
variations);
• refer them to the IPP Guide for Suppliers which contains information to assist meet employment and
supply use targets; or
• reach out to the NIAA regional office for assistance (see resource information)
9.3 Verifying information
It is the responsibility of the contract manager to verify that the supplier has accurately reported
Indigenous employment and supply-use outcomes. This can be challenging because it may rely on
sensitive information regarding a person’s heritage.
The supplier should have taken reasonable steps, through risk management practices, to confirm that the
Indigenous workers or Indigenous suppliers contributing to the delivery of the contract can attest to their
Indigenous heritage and Indigenous ownership. This could involve requiring an employee to provide this
information as part of standard HR processes, with a warning that false information could lead to
disciplinary action
As part of a Commonwealth entity’s contract management control framework, it would be beneficial to
integrate reviews of MMR documentation.
When considering requirements please note:
• when submitting data via the IPPRS, the supplier is notified that providing false information is a
criminal offence
• for the supply-use target, the IPPRS will automatically verify whether the business is Indigenous
owned by data matching with Supply Nation and ORIC and record this in the system.
The contract manager should specify the documentation the supplier must maintain as evidence of
MMR performance, taking into consideration associated risks. From time to time the contract manager
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should take steps to assure themselves that information being reported by suppliers is accurate. This
could, for example, include spot reviews of evidence to support the reported information, or site visits as
appropriate.
Subject to privacy requirements, the documents associated with the MMR workforce target could
include:
• payroll information that demonstrate hours worked by staff on the project;
• evidence that staff have identified as Aboriginal and/or Torres Strait Islander as part of a human
resource processes where providing false information could risk their employment;
9.4 Final compliance assessment, contract end
Final compliance with MMR targets is calculated once the contract has been completed and the
supplier’s final report has been submitted and assessed. The IPPRS will assist with these calculations.
At the end of the contract the contract manager will provide a final assessment of the supplier’s
performance against MMR targets in the IPPRS. This assessment will be accessible to any future evaluation
panel across Commonwealth entities when considering the past performance of the supplier.
For contract-based workforce, organisation-based workforce and organisation-based supply chain
targets, final performance against the MMR target is calculated based on a weighted average over the
term of the contract.
For contract-based supply chain targets, final performance against the MMR target is calculated based
on the cumulative value of subcontracts to Indigenous businesses over the life of the contract.
The contract manager is required to add comments alongside the supplier’s final compliance rating in
the IPPRS. These records will be accessible to Commonwealth entities for consideration during the
assessment of future tenders involving the same supplier. The final compliance rating is a rating of
complied or not complied.
10.0 Contract variations
10.1 Varying a contract that is already subject to MMR
During the term of a contract, a supplier may identify the need to adopt a different approach to
meeting the MMR. An entity may agree to revise the targets in the suppliers Indigenous Participation Plan
at any time during the term of the contract providing any changes are consistent with the MMR.
Specifically, varied employment and supply-use targets must still add up to a minimum of 4 per cent for
contract based targets or a minimum of 3 per cent for organisation-based targets and represent a
significant Indigenous participation outcome for any component of the contract delivered in remote
Australia following the variation.
The contract manager should ensure that the new targets are reflected in a revised Indigenous
Participation Plan in the varied contract and MMR targets are updated within the IPPRS. Entities should
ensure changes are agreed by both parties in writing and are carried out in accordance with the terms
and conditions of the contract.
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10.1.1 MMR variations and the IPPRS
The IPPRS will identify if a contract subject to the MMR is varied the day after it is published on AusTender.
Where a MMR target has been applied to the contract, the IPPRS will update the supply based target
and the performance to date against the new percentage. The dates of reporting will also be updated.
10.2 Varying a contract to increase the value of the contract above
the $7.5 million threshold
Care needs to be taken to ensure new and unexpected requirements are not imposed on the supplier
over the life of the contract.
When negotiating a contract variation, contract managers should have regard to whether the supplier
has been notified that Indigenous participation may become a requirement at the ATM stage an in the
initial contract. Procurement officials are encouraged to include model clauses in the approach to
market documentation and initial contract to support this. The model clauses encourage suppliers to use
their best endeavours to engage with Indigenous businesses and job seekers. These model clauses notify
the supplier that, in the event that the contract value exceeds $7.5 million (GST inclusive), the MMR may
apply and that the contract manager may request an Indigenous participation plan.
Where a contract is varied and clauses, such as the model clauses described, have been included. The
contract manager should initiate a conversation with the supplier to identify opportunities available for
Indigenous participation in the remainder of the contract.
To support this discussion, the supplier and/or the contract manager should consider the number of
Indigenous businesses on the Supply Nation Directory that could potentially be engaged on the
remainder of the project and potential employment opportunities for the Indigenous workforce in the
region.
Where opportunities are identified, they may be expressed as an employment and/or supply use target,
and the strategy to achieve these targets should be documented in an Indigenous Participation Plan
and included in a formal contract variation.
The varied contract should require the supplier to report progress against the Indigenous Participation
Plan each quarter. Suppliers may prefer to report outcomes via the IPPRS using the voluntary reporting
profile. The NIAA can advise how the IPPRS may be used to report the level of Indigenous participation
achieved.
Where the model clauses have not been included, the contract manager should encourage the supplier
to use their best endeavours to increase Indigenous participation over the delivery of the contract.
11.0 Further assistance
You may wish to contact your organisation’s procurement area or the IPP Helpdesk:
Email: indigenousprocurement@niaa.gov.au
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12.0 Resources
1. Australian Bureau of Statistics
https://www.abs.gov.au/websitedbs/D3310114.nsf/Home/2016%20search%20by%20geography
2. NIAA Regional Office Network
https://www.niaa.gov.au/contact-us/regional-network-addresses
3. Indigenous Procurement Policy
https://www.niaa.gov.au/resource-centre/indigenous-affairs/commonwealth-indigenous-
procurement-policy
4. NIAA Model Clauses
https://www.niaa.gov.au/resource-centre/indigenous-affairs/indigenous-procurement-policy-
model-clauses
5. How to use the IPPRS
https://www.niaa.gov.au/ipprs
6. IPPRS Contractor Portal
https://www.niaa.gov.au/ippcp
7. RIPP Map data
https://www.niaa.gov.au/resource-centre/indigenous-affairs/ripp-map-data
8. Department of Finance – Buying for Government
https://www.finance.gov.au/government/procurement/buying-australian-government
9. Commonwealth Procurement Rules
https://www.finance.gov.au/government/procurement/commonwealth-procurement-rules
10. Community Development program
https://www.niaa.gov.au/indigenous-affairs/employment/cdp
11. Office of Registrar of Indigenous Corporations (ORIC)
https://www.oric.gov.au/
12. ORIC – Registered Corporations database
https://register.oric.gov.au/PrintCorporationSearch.aspx?state=SA
13. Indigenous Land and Sea Corporation
https://www.ilsc.gov.au/
14. Aboriginal Land Councils
https://www.creativespirits.info/aboriginalculture/selfdetermination/aboriginal-land-councils
15. Supply Nation - Indigenous Business Directory
https://supplynation.org.au/
16. Job Search – Service Providers
https://jobsearch.gov.au/serviceproviders
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17. Indigenous media outlet resource
https://www.creativespirits.info/resources/newspapers-magazines
18. Reconciliation Australia
https://www.reconciliation.org.au/
19. NSW Indigenous Chamber of Commerce
https://nswicc.com.au/
20. South East Queensland Indigenous Chamber of Commerce
http://seqicc.com.au/
21. Kinaway Chamber of Commerce – Victoria
https://kinaway.com.au/
22. Aboriginal Business Industry Chamber of South Australia
https://abicsa.org.au/
23. Mandurah Hunter Indigenous Business Chamber
http://www.mandurahhibc.com.au/
24. Aboriginal Business Directory WA
http://abdwa.com.au/
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Attachment A
Case Study One: Life cycle of a MMR with a contract-based target.
The Department of Land and Wildlife Conservation (DLWC) seek to procure services to restore
sand dunes in Bryon Bay estimated to be valued at $10 million.
As the procurement is valued at over $7.5 million and will be delivered wholly in Australia, it is likely
to be subject to the MMR.
To confirm, the responsible procuring officer conducts a search of Erosion Control Services on the
UNSPSC website. The search produces a code of 70131503. The first two digits of that code – 70 –
correspond with the broader industry category Farming, fishing, forestry and wildlife contracting
services, an industry category subject to the MMR.
The procuring officer searches the electronic IPP interactive map and confirms that Byron Bay, the
delivery location, is not defined as a remote location and therefore the higher MMR remote
targets do not need to apply.
DLWC issues an approach to market (ATM) inviting potential suppliers to participate in the
procurement. The ATM includes the MMR model clauses that require tenderers to submit an
Indigenous Participation Plan. The DLWC tender documents include the requirement for the
evaluation panel to consider tenders’ past performance against the MMR and the draft contract
(included in the ATM) includes MMR model clauses that require the successful tender to report
quarterly against the MMR via the Commonwealth’s IPPRS.
Roberto, owner-manager of Erosion Be Gone, is registered to receive AusTender alerts. Roberto
reviews the ATM documentation. Roberto determines his company can meet a MMR contract-
based target of 4 per cent, comprising 1 per cent employment and 3 per cent supply-use.
Since Roberto plans to quote $11 million, the 3 per cent supply use target will require Roberto to
use Indigenous businesses to deliver at least $330,000 of the project.
Roberto has an existing relationship with a business that he knows is at least 50% Indigenous
owned that he will use to supply landscaping equipment. Roberto uses the Supply Nation
directory to identify two other businesses that he confirms can provide the required specialist
vehicle and signage for the project.
Roberto calculates that he will require two additional staff to deliver on the project at Byron Bay.
He searches for employment service providers on https://jobsearch.gov.au/serviceproviders to
identify the local employment service providers. Based on a conversation with the local provider
he is confident he can recruit at least one employee that identifies as Aboriginal to work on the
project.
Roberto includes these details in the Indigenous Participation Plan as part of the tender submission
alongside the current rates of Erosion Be Gone Indigenous employment and supply use. Roberto
declares that Erosion Be Gone has never been subject to the MMR before and therefore does not
have any past performance information to include.
The DLWC tender evaluation panel searches the IPPRS to confirm if tenders have previously been
subject to the MMR. The panel considers strategies to meet MMR targets outlined in the
Indigenous Participation Plans. It is confirmed Erosion Be Gone has not been subject to the MMR
before. The panel forms the view that Erosion Be Gone’s Indigenous Participation Plan has a clear
strategy to connect with Indigenous businesses and job seekers.
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Erosion Be Gone is assessed as the preferred supplier (having regard to the tender evaluation
criteria and overall value for money assessment) and enters into a contract. DLWC publishes a
contract notice on AusTender.
The IPPRS identifies (through data-matching with AusTender) DLWC has awarded a contract likely
subject to the MMR and emails an alert to the DLWC portfolio contact.
The portfolio contact identifies the relevant contract manager who confirms that the contract is
subject to the MMR. The contract manager enters the MMR targets included in the contract and
the postcode for the delivery location into the system. The contract manager also enters the
relevant email address for Erosion Be Gone – ideally the email address will allow for potential
turnover or absence with the contracted firm so the company continues to comply. The IPPRS
sends Erosion Be Gone an email to initiate quarterly reporting.
Each quarter Erosion Be Gone receives an email from the IPPRS reminding them to report. For
each report, Roberto enters the total number of FTE working on the dune regeneration project
and the total number of FTE that identify as indigenous working on the project.
Roberto also enters the ABN of the Indigenous businesses that he as engaged in the delivery of
the project alongside the value of the purchase/contract, date of purchase and a brief
description of the purchase. The IPPRS data matches the ABN with Supply Nation and ORIC to
confirm these businesses are verified as at least 50 per cent Indigenous owned. For Indigenous
businesses not registered with Supply Nation or ORIC, Erosion Be Gone is required to maintain
documents confirming they have made appropriate checks to confirm the businesses are at least
50 per cent Indigenous owned.
The DLWC contract manager receives an email from the IPPRS after Roberto has submitted a
quarterly report. The contract manager is required to review the report, acknowledge receipt of
the report in the system and may make any comments for Erosion Be Gone’s attention.
In fulfilling its reporting obligations, Erosion Be Gone is able to track progress and make early
adjustments to ensure his company’s performance remains on track. During the life of the
contract, Roberto may seek a contract variation to change the employment and supply use
combination of the MMR target. In considering the request the DLWC contract manager confirm
if the proposed change complies with the MMR. At the end of the contract, Erosion Be Gone’s
final performance against its MMR target is calculated by the IPPRS.
This performance history will be accessed by evaluation panels when Erosion Be Gone tenders for
other contracts subject to the MMR.
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Case Study Two: Life cycle of a MMR with an organisation-based target
The Department of Hydro-Energy (DHE), based in Canberra, seeks a feasibility study to upgrade a
dam in the Cairns water catchment area. DHE estimate the procurement is valued at $20 million.
As the procurement is valued over $7.5 million and delivered wholly in Australia it is likely subject to
the MMR.
A search for Dam Engineering on the USPSC website produces a code of 81101507. The first two
digits of that code – 81 – correspond with the broader industry category Engineering and
Research and Technology Based Services, an industry sector subject to the MMR.
The procuring officer searches the electronic IPP interactive map
and confirms Canberra, the
delivery location is not defined as a remote location and the higher remote MMR targets will not
need to be applied.
DHE issues an ATM that includes model clauses requiring the inclusion of an Indigenous
Participation Plan in the tender submission. The DHE tender evaluation document includes the
requirement to consider tenderers’ past performance against the MMR and the draft contract
(included in the ATM) includes model clauses requiring quarterly reporting against the MMR
targets via the IPPRS.
Owner-manager, Sunita is registered to receive alerts via AusTender. Sunita reviews the ATM and
determines that her company, JJ Engineering can meet an organisation-based MMR target of 3
per cent, comprising 2 per cent employment and 1 per cent supply-use. JJ Engineering has an
active contract with the Department of Land and Wildlife Conservation (DLWC) that also contains
a 3 per cent organisation based MMR target.
Sunita includes these details in the Indigenous Participation Plan in the tender submission, along
with details of JJ Engineering’s current rate of Indigenous employment and supply use. Sunita also
declares that JJ Engineering has been subject to, and complied with, the MMR in the past and is
currently subject to an organisation based MMR target through a contract with DLWC.
The DHE tender evaluation panel searches the IPPRS to confirm if tenders have previously been
subject to the MMR. DHE confirms that JJ Engineering has previously complied with the MMR and
is currently reporting against an organisation based MMR target contained in a DLWC contract.
DHE also considered whether or not the strategy outlined in JJ Engineering’s Indigenous
Participation Plan is likely to support the achievement of the MMR over the life of the DHE
contract.
JJ Engineering becomes the preferred supplier and enters a contract with DHE. DHE publishes a
notice of this contract on AusTender.
The IPPRS identifies (through data-matching with AusTender) DHE has awarded a contract likely
subject to the MMR and emails an alert to the Portfolio contact. The Portfolio contact identifies
the relevant contract manager. The contact manager confirms that the MMR applies to the
contract and enters the organisation based MMR target, the delivery postcode and Sunita’s
email address into the IPPRS. Sunita receives an email from the IPPRS to initiate quarterly reporting.
The contract requires Sunita to report JJ Engineering’s performance against the organisation-
based target in the IPPRS at least quarterly. However, suppliers are able to report more frequently
against organisation-based MMR targets. Sunita has previously decided to report against the
DWLC contract monthly as this aligns with other reporting requirement in her organisation. Sunita
will only need to submit one report each month to meet the requirement of both contracts.
The IPPRS emails Sunita an alert when the report is due.
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Sunita reports JJ Engineering’s total FTE for their Australian based operations for that month and
the total Indigenous FTE employed as part of JJ Engineering’s Australian based operations for that
month.
Sunita also reports the total Australian based supply chain spend for JJ Engineering for that month
and all purchases and contracts JJ Engineering made with an Indigenous business that month.
The IPPRS uses the information to calculate performance to date against the DLWC and the DHE
contracts. Sunita is able to track her progress against both contacts and make early adjustments
to ensure her company’s performance remains on track.
The DHE and the DLWC contract managers receive an email when Sunita submits the report and
are able to review the reports and make comments in the system.
At the end of the DHE contract end, JJ Engineering’s final performance against its MMR target is
calculated by the IPPRS. This information is available to other Commonwealth officials required to
consider the JJ Engineering’s past performance in tender evaluations.
