Defence continues to set the benchmark for Australian Government agencies in awarding contracts to First Nations businesses under the Commonwealth’s Indigenous Procurement Policy (IPP).
Since the inception of the IPP in 2015, Defence has awarded more than $7 billion in contracts to Indigenous enterprises, creating meaningful economic opportunities and strengthening participation of Indigenous businesses in the national economy.
Figures from the National Indigenous Australians Agency (NIAA) show Defence has exceeded Australian Government targets to procure Indigenous business, with about half of all Commonwealth contracts awarded under IPP coming from Defence.
Defence Indigenous Champion and Deputy Secretary Security and Estate Celia Perkins said Defence continued to help Close the Gap by partnering with First Nations businesses in an impactful way.
“During NAIDOC Week, it is particularly pleasing to see Defence continuing to strengthen its commitment to partnering with First Nations businesses and leading the Commonwealth in delivering meaningful procurement outcomes,” Ms Perkins said.
“Defence is committed to advancing reconciliation through our culture and procurement strategies, enhancing capability and improving employment and socioeconomic outcomes for First Nations peoples.”
Further enhancing the Government’s engagement with Indigenous businesses are changes to the IPP that are already making the Commonwealth’s Indigenous procurement targets more ambitious.
From July 1, the eligibility criteria for the IPP were strengthened to require that Indigenous businesses are 51 per cent or more First Nations owned and controlled, or registered with the Office of the Registrar of Indigenous Corporations, to access the IPP. To give First Nations businesses time to understand the changes and arrange verification under the strengthened criteria if they choose, there will be a 12-month transition period.
Acting First Assistant Secretary Commercial Nicholas Plowman said Defence’s strong interaction with First Nations businesses showed its continuing recognition of the quality and expertise of Indigenous enterprise.
“Through the IPP, we are helping to stimulate entrepreneurship, and support business and economic development for First Nations businesses, as well as increase diversity within Defence’s supply chains,” Mr Plowman said.
First Nations businesses seeking to engage with Defence should complete the Indigenous Procurement Policy questionnaire
