IPP Systems

1. Indigenous Procurement Policy Reporting Solution

The Indigenous Procurement Policy Reporting Solution (IPPRS) is a whole of government web-based application, used to manage the reporting and assessment requirements of contracts, with mandatory minimum requirements for Indigenous participation. The IPPRS provides a centralised register of all MMR contracts, awarded by all agencies and the contractor performance data for each contract.

What is an MMR?

Under the IPP, mandatory minimum requirements (MMR) for Indigenous participation are contractual requirements specifying a minimum level of Indigenous involvement in all high-value contracts delivered in Australia, where the majority of the goods or services are in one of the specified industry sectors.

When is a contract subject to an MMR?

A contract is potentially subject to MMR if it has the following characteristics:

• commences on or after 01/7/2016
• is awarded by an agency that is mandated to follow the IPP
• the contract value equals or exceeds the threshold set by the policy for the financial year that the contract commenced ($7.5 million as at 2016-17)
• more than half the value of the contract is spent in one of the nominated MMR industry sectors for the financial year the contract commenced

Contracts can be exempted from the MMR in some circumstances. Please refer to the IPP policy for more information on exemptions.

What is Indigenous participation and how is it measured?

Indigenous participation within a contract can include employment of Indigenous staff and/or inclusion of Indigenous businesses in the contractor’s supply chain, via purchases or sub-contracting arrangements.

As part of the contract negotiation for a MMR contract, the lead contractor must set targets for Indigenous participation for the contract, or can choose to reach target(s) set for the organisation as a whole. The targets must equal or exceed the minimum targets set by the policy for the financial year that the contract commences in.

Indigenous participation can be assessed by either of the following methods.

1. Contract-based assessment: Over the term of the contract, the contractor is required to achieve a percentage (%) of Indigenous employment on the contract, or a percentage of the contract value (supply chain) must be sourced from Indigenous business. The Indigenous employment or supply chain value percentages may be combined and must equal to or exceed the minimum target set by the policy.
2. Organisation-based assessment:  Over the term of the contract, the contractor’s organisation is required to achieve a minimum level of Indigenous employment, or source a minimum percentage of its domestic supply chain from Indigenous businesses. The minimum Indigenous employment or domestic supply chain value percentages may be combined and must equal or exceed the minimum target set by the policy.

The minimum target for each assessment method is determined by the policy for each financial year. For contracts commencing in the 2016-17 financial year, the minimum targets are 4% for contract-based assessment and 3% for organisation-based assessment.

The target can be reached by a combination of Indigenous employment and use of Indigenous businesses in the contract or organisation supply chain. For example, a contractor may choose the contract-based assessment method and set a target of 1.5% for Indigenous employment and a target of 2.5% for Indigenous supply chain.  Alternatively, the contractor’s organisation may achieve a minimum of 3% Indigenous employees across the organisation and set no target for Indigenous supply chain.

How is Indigenous participation reported and assessed?

From the commencement of the contract, the contractor must provide quarterly performance reports (QPR) on the workforce profile and / or supply chain profile of the contract or organisation. The QPRs enable both the contractor and the agency to monitor progress towards the stated performance targets.

At the completion of the contract, the IPPRS uses the information in the QPRs to assess the contractor's performance and determine their targets have been met and comply. The QPRs and compliance details are available to all Commonwealth officers and should form part of any future tender evaluation processes that involve the contractor.

How does the IPPRS manage the MMR reporting / assessment process?

The IPPRS allows agencies to:

• nominate agency and contractor staff responsible for reporting on MMR contracts
• enter assessment methods and targets for contracts
• manage the quarterly reporting cycle, sending automated reminders to contractors as required
• track progress / performance to date for each contract
• calculate a compliance rating based on the submitted quarterly reports
• create reports of contract, performance and compliance information
• exempt contracts from the MMR reporting process when appropriate
• automatically comply with agency reporting obligations to the IPP policy area

2. Indigenous Procurement Policy Contractor Portal

The IPP Contractor Portal (Contractor PortaI) is for use by external contractor organisations, who have been awarded MMR contracts. Using the contractor portal, a contractor can enter and submit quarterly performance reports (QPRs) for their ongoing MMR contracts. The contractor portal also allows contractors to view the assessment and compliance ratings that portfolio agencies have applied to each contract and provide feedback.  Contractors are able to view full details of their own contracts and do not have access to contracts awarded to other organisations.

External contractors do not have access to the IPPRS. Similarly, Commonwealth agency staff do not have access to the contractor portal.

Data Extracts

Both the IPPRS and the Contractor PortaI contain data extracted and uploaded into the IPPRS from the following sources:

• AusTender: provides centralised publication of Australian Government business opportunities, annual procurement plans, multi-use lists and contracts awarded.

 Contracts valued at >= (greater than or equal to) $10,000 are uploaded weekly from AusTender.

Contracts / purchases (including sub-contracts) with Indigenous businesses valued at < (less than) $10,000 are uploaded manually by Agencies (planned for release 2).

• Supply Nation: the Australian leader in supplier diversity, established in 2009 to connect membership of Australia's leading brands and government with Indigenous businesses across the country. Supply Nation's rigorous registration and certification processes ensure members confidence when accessing Indigenous-owned businesses listed on Indigenous Business Direct. To fulfil targets in the Indigenous Procurement Policy, government encourages buyers to consult Supply Nation's Indigenous Business Direct, a one-stop-shop for anyone looking to access goods and services provided by Indigenous owned businesses.

 Supply Nation data is uploaded into the IPPRS weekly.

• Office of the Registrar of Indigenous Corporations (ORIC): The Registrar is an independent statutory office holder who administers the Corporations (Aboriginal and Torres Strait Islander) (CATSI) Act 2006. Registration under the CATSI Act is mostly voluntary. However, some corporations, for example, ‘prescribed bodies corporate’ set up under the Native Title Act 1993 are required to register under the CATSI Act.

 Indigenous Corporations registered with ORIC are uploaded quarterly.