Indigenous Opportunity Policy - Progress update

Further to the announcement of the Indigenous Opportunity Policy (IOP) by the Minister for Finance and Deregulation and the Minister for Employment Participation in February this year, AIMSC is pleased to provide our stakeholders with a progress update.

The IOP’s objective is to create opportunities for Indigenous businesses to be engaged by major contractors on government projects in areas with significant Indigenous populations. It will apply to projects valued at AU$5million and above ($6m for construction). The Australian Government recently released Draft Guidelines for potential tenderers to assist them in implementing the IOP.

Firstly we would like to thank the Government for inviting AIMSC to make a submission on the Draft Guidelines; AIMSC welcomes the move to increase Indigenous businesses participation in Australian Government projects. We also thank our members who provided feedback on the implementation guidelines; this feedback assisted in drafting AIMSC’s submission.

AIMSC’s overarching view is that fundamental to the implementation of the policy is its ability to truly increase Indigenous business participation in government expenditure. To achieve this, AIMSC and our members encourages government to further develop the following areas before implementation:

1. better align the IOP’s implementation to the objectives of supplier diversity by:

providing a weighting to tenderers that have a demonstrated method for including Indigenous business in their projects
recognising a tenderers track record with engaging Indigenous business
clarifying the process for monitoring the actual engagement of Indigenous business by successful tenderers once the project is underway

2. clarify the requirements for potential tenderers in developing and obtaining an approved Plan for increasing Indigenous participation in government projects

3. extend the consultation period to enable further feedback from primary contractors and Indigenous business

AIMSC’s full submission letter and accompanying feedback can be viewed by clicking the links below. Full details of the policy can be accessed here.

AIMSC response letter

AIMSC specific feedbackFurther to the announcement of the Indigenous Opportunity Policy (IOP) by the Minister for Finance and Deregulation and the Minister for Employment Participation in February this year, AIMSC is pleased to provide our stakeholders with a progress update.

The IOP’s objective is to create opportunities for Indigenous businesses to be engaged by major contractors on government projects in areas with significant Indigenous populations. It will apply to projects valued at AU$5million and above ($6m for construction). The Australian Government recently released Draft Guidelines for potential tenderers to assist them in implementing the IOP.

Firstly we would like to thank the Government for inviting AIMSC to make a submission on the Draft Guidelines; AIMSC welcomes the move to increase Indigenous businesses participation in Australian Government projects. We also thank our members who provided feedback on the implementation guidelines; this feedback assisted in drafting AIMSC’s submission.

AIMSC’s overarching view is that fundamental to the implementation of the policy is its ability to truly increase Indigenous business participation in government expenditure. To achieve this, AIMSC and our members encourages government to further develop the following areas before implementation:

1. better align the IOP’s implementation to the objectives of supplier diversity by:

providing a weighting to tenderers that have a demonstrated method for including Indigenous business in their projects
recognising a tenderers track record with engaging Indigenous business
clarifying the process for monitoring the actual engagement of Indigenous business by successful tenderers once the project is underway

2. clarify the requirements for potential tenderers in developing and obtaining an approved Plan for increasing Indigenous participation in government projects

3. extend the consultation period to enable further feedback from primary contractors and Indigenous business