As government looks to 'three-sector solutions' to tackle wicked problems in public policy, two of those sectors know well the need for change. Not-fo
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Home News PM’s dept sets indigenous procurement targets, failure not an option
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PEOPLENigel Scullion, Mathias Cormann
COMPANIESPacific Services Group Holdings
DEPARTMENTSDepartment of Finance, Department of Defence, Department of the Prime Minister and Cabinet
TAGS Technology, Procurement, federal government, Indigenous Australians, Purchasing, E-procurement, Supply chain management, Business, Systems engineering, Electronic commerce
Commonwealth mandarins now have their marching orders for exactly how many contracts in each portfolio must go to companies owned by Aboriginal and Torres Strait Islander people. The new indigenous procurement policy takes effect on July 1.
The Department of Defence has been asked to find 70 new contracts for indigenous-owned corporations by next year, while Education only has to find four.
The federal government has released its new Indigenous Procurement Policy, which takes effect from July 1, demanding 3% of contracts go to businesses that are majority-owned by Aboriginal and Torres Strait Islander people by 2020.
The policy document released by the Department of Prime Minister and Cabinet includes a list of the 2015-16 targets for each portfolio (see table below), and the formula for calculating them.
In total, the government wants 256 contracts going to indigenous-owned businesses in the coming financial year, 70 of those with the Department of Defence. The next highest targets are 19 contracts each for the Attorney-General’s portfolio, Treasury, and Immigration and Border Protection.
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Stephen Easton is a journalist at The Mandarin based in Canberra. He's previously reported for Canberra CityNews and worked on industry titles for The Intermedia Group.
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