IPP Mandatory Minimum Indigenous Participation Requirements
The MMRs create Indigenous employment and subcontracting opportunities. Smaller Indigenous businesses may not have the capacity to tender for large contracts directly so the MMRs ensure that Commonwealth suppliers are looking to engage them in their own supply chains. Through its role as a purchaser, the Commonwealth is influencing private sector practices. Ultimately, every significant Commonwealth supplier should have a clearly articulated and measurable approach to employing Indigenous Australians and using Indigenous businesses.
MMRs are targets for Indigenous employment and supply use that are included in all Commonwealth procurement contracts that are:
- wholly delivered in Australia;
- valued at $7.5 million (GST inclusive) or more; and
- where more than half of the value of the contract is being spent in one or more of nineteen specified industry sectors.