Indigenous Procurement Policy (IPP)

Status

Optional (see Notes section below)

Source

Indigenous Procurement Policy Model Clauses

Legislation / Policy
Legislation / Policy contact

Indigenous Business and Economic Policy Branch,
Department of the Prime Minister and Cabinet

Additional information
Guidance

The Indigenous Procurement Policy (IPP) applies to all non-Corporate Commonwealth entities that are required to comply with the Commonwealth Procurement Rules.

Prescribed Corporate Commonwealth entities listed in section 30 of the Public Governance, Performance and Accountability Rule 2014 and Commonwealth entities that are not required to comply with the Commonwealth Procurement Rules are encouraged to use best endeavours to apply the policy.

The IPP model clauses contains:

  • Clauses for all IPP procurement processes, which supports the use of Exemption 16 of the CPRs. 
  • Clauses for high value contracts (valued from $7.5 million in eight specific sectors) where Mandatory Minimum Requirements apply
  • Clauses for Department initiated Indigenous participation targets where the Mandatory Minimum Requirements does not apply.
  • Clauses that supports transition arrangements for new Incorporated Indigenous joint venture requirements, until 30 June 2019.

The use of the IPP model clauses will ensure approach to market processes and contracts meet both IPP and CPR requirements. 

The IPP model clauses should not be used in conjunction with the Commonwealth Contracting Suite.

Clauses

The IPP model clauses are available on the National Indigenous Australians Agency Website at this link  https://www.niaa.gov.au/resource-centre/indigenous-affairs/indigenous-procurement-policy-model-clauses

Notes

Use of the model clauses is optional but PM&C strongly recommend their inclusion to ensure compliance with the Indigenous Procurement Policy Reporting Solution and facilitate use of the Indigenous Exemption in Appendix A of the Commonwealth Procurement Rules. 

These clauses have been updated to reflect changes to the reporting arrangements under the Indigenous Procurement Policy Reporting Solution, and to support the application of Exemption No.16 of the Commonwealth Procurement Rules. Entities are able to modify or adapt these clauses to ensure consistency with their procurement documentation.  Where an entity develops its own clauses or modifies these clauses, the entity should ensure that it fully complies with all requirements of the Indigenous Procurement Policy Guidelines.

Choosing which model clauses to use will depend on the nature of the contract, including subject matter, value and location. Detailed guidance on the policy and the factors which determine the contract clause requirements that will apply is available on the Prime Minister and Cabinet IPP Model Clauses webpage.

Standardisation of contractual text results in efficiencies for both Parties to a contract. Before deciding whether a particular clause is appropriate, procurement officials should carefully consider the context of their procurement.

Clause wording would generally need to be changed where Commonwealth entities need to adapt the clauses to fit into their contracting templates, but the clause wording must comply with the IPP.

Any terms that are capitalised may need to be changed to align with the Contract terminology.


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