What does 4.5 require?

Where a component of a contract subject to the MMR is delivered in remote Australia, the purchasing Commonwealth entity must ensure the contract requires significant Indigenous employment or supplier use outcomes in that area, in excess of the minimum target levels in Table 1. This could be achieved by subcontracting one or more Indigenous enterprises to help deliver the goods and services in the remote area, or by specifying a minimum Indigenous employment share for the remote proportion of the work, for example 20 per cent. In deciding what counts as significant, the entity and supplier should have regard to the local employment market including the number and skills of Indigenous businesses, workers and job seekers, the scale, value and location of the contract and the skills it needs, the availability of supply-side services to support meeting targets and build Indigenous capacity, and existing Commonwealth, state and territory policies and targets.

Australia Indigenous Procurement Policy (May 2026) 4.5...

Other controls in Section 4 Mandatory Minimum Indigenous Participation Requirements for high value contracts – Australia Indigenous Procurement Policy (May 2026)

4.1 MMR in tendering: tenderers must set out how the targets will be met in an Indigenous Participation Plan, state whether they have been subject to MMR targets before and declare current Indigenous employment and supplier use; the entity must consider each plan and the tenderer's past MMR performance held in the IPPRS and document those considerations in the tender assessment
4.2 MMR application: include Mandatory Minimum Indigenous Participation Requirements in the approach to market for every procurement wholly delivered in Australia valued at 7.5 million dollars or more (GST inclusive) where more than half the value falls in the Appendix B industry categories (eight from 1 July 2016, nineteen from 1 July 2020), including procurements from panels and coordinated or cooperative arrangements; excluded are CPR 2.6 contracts, the Appendix B sub-category exemptions and contracts delivered wholly or partly overseas, where voluntary application and IPPRS reporting are encouraged
4.3 Varied contracts: a Portfolio may negotiate the MMR into a varied contract where the variation lifts total value to 7.5 million dollars or more, more than half the value is in the specified sectors and the variation offers real opportunity for Indigenous participation in the remainder, applying from the variation date; not where the contract is nearly complete or the burden outweighs the outcome; only by mutual agreement with no penalty for refusal, and reported in the IPPRS as a voluntary MMR
4.4 MMR targets (Table 1): the supplier, with the entity, elects a contract-level target of 4 per cent Indigenous employment (average FTE of the Australian-based workforce on the project) or 4 per cent of contract value to Indigenous enterprises or a combination totalling 4 per cent, or an organisation-level target of 3 per cent employment or 3 per cent of the Australian supply chain or a combination totalling 3 per cent, all by the end of the contract term, met directly or through subcontracts
4.6.1 Approach to market: specify whether any component is delivered in a remote area and require tenderers to declare their compliance with past MMR contracts and to submit an Indigenous Participation Plan covering how the MMR will be met, current Indigenous employment and supplier use rates, their commitment to Indigenous participation and how significant outcomes will be delivered in any remote area; new panel deeds must state that the MMR applies to procurements from the panel
4.6.2 Tender evaluation and panel orders: consider past MMR compliance from the IPPRS, the proposed Indigenous Participation Plan and, for remote components, the ability to achieve significant outcomes; when ordering from a panel where the order meets the MMR criteria, require the panel member's Indigenous Participation Plan and past compliance details and consider them in the evaluation, awarding only to suppliers with the capacity to meet the MMR
4.6.4 Contract management: the contract manager ensures compliance with the Indigenous Participation Plan and MMR targets through the term, establishing, monitoring and assessing the supplier's quarterly IPPRS progress reports and running assurance over their accuracy; targets may be varied only consistently with the policy (still summing to 4 or 3 per cent and significant for remote components), through a contract variation, a revised agreed plan and an IPPRS update
4.6.5 Supplier reporting: suppliers report quarterly through the IPPRS within the days allowed (up to 60 for quarterly performance reports, 14 for organisation-level supply chain reports) giving total and Indigenous workforce hours, from which FTE is calculated, and each Indigenous subcontract or purchase with ABN, enterprise name, value, date, description and whether direct or through the supply chain; the entity ensures reports arrive on time and reviews everything provided; the NIAA publishes the names of suppliers holding MMR contracts

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MCP endpoint All Australia Indigenous Procurement Policy (May 2026) controls