Indigenous Opportunities Policy
Indigenous Opportunities Policy
GUIDELINES
2011
Version: December 2014
Contents
PART A – OVERVIEW 4
1. About these Guidelines 4
2. What is the Indigenous Opportunities Policy? 4
3. Why do we have an Indigenous Opportunities Policy? 5
4. Implementation 5
5. How does the Indigenous Opportunities Policy work? 5
6. How will the Policy affect organisations bidding for large government contracts? 6
6.1 Overview 6
6.2 The Indigenous Training, Employment and Supplier Plan 6
6.3 Implementation, reporting and monitoring 7
6.4 Applying for re-approval 7
6.5 Non-compliance 7
6.6 Consequences of non-compliance 8
6.6 The suspension process 8
6.7 Remedies imposed by non-corporate Commonwealth entities for breach of contract 9
7. Roles and Responsibilities 9
7.1 Organisations 9
7.2 Non-corporate Commonwealth entities 9
7.3 Indigenous Opportunities Policy Administrator 9
8. Contact Information 10
PART B - KEY STEPS UNDER THE POLICY FOR ORGANISATIONS 11
9. Step A: Determine whether a Plan is required 11
10. Step B: Developing a Plan 11
11. Step C: Obtain approval of the Plan 11
12. Step D: Implement the Plan locally and report the outcomes achieved under the Plan 12
13. Step E: Apply for re-approval of the Plan 12
14. Complaints 12
Part C: APPLYING THE POLICY – OPERATIONAL AND TECHNICAL ADVICE FOR NON-CORPORATE COMMONWEALTH ENTITIES 14
15. Determining whether the Policy Applies 14
15.1 Preparation 14
15.2 Applying the policy 14
15.3 Determining the value of a contract 14
15.4 Determining the main location of an activity or service 14
15.5 Determining regions with significant Indigenous Australian populations 15
15.6 Combined Procurement and Grant funding contracts/agreements 15
16. Consulting with the IOP Administrator and Other Bodies 15
16.1 Consulting with the IOP Administrator 15
17. Incorporating Policy requirements in Approach to Market Documentation and Contracts 17
18. Contract Management 18
18.1 Maintaining and implementing an Indigenous Australian Training, Employment and Supplier Plan 18
18.2 Monitoring and Review 18
18.3 Suspension of a Plan by the IOP Administrator 18
18.4 Remedies imposed by non-corporate Commonwealth entities for breach of contract 19
19. Reporting 19
19.1 The IOP Administrator 19
19.2 Non-corporate Commonwealth entities 19
19.3 Organisations 20
Appendix A: Regions with significant Indigenous populations 21
Appendix B: Indigenous Training, Employment and Supplier Plan Template 22
Appendix C: Implementation and Outcomes Report Template (this template is indicative only) 31
Appendix D: Model Clauses for an Approach to Market 36
This symbol indicates a section of particular importance to organisations on remaining compliant with the Indigenous Opportunities Policy Guidelines:
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PART A – OVERVIEW
1. About these Guidelines
These Guidelines provide information about the Indigenous Opportunities Policy (the Policy) for:
· organisations responding to, or thinking about responding to, an Approach to Market[1] for large Australian Government contracts, and
· Non- corporate Commonwealth entities (entities) subject to the Public Governance, Performance and Accountability Act 2013 (PGPA Act) previously the Financial Management and Accountability Act 1997 (FMA Agencies), who are required to comply with the Policy.
The Guidelines are divided into three parts:
· Part A provides an overview of the Indigenous Opportunities Policy
· Part B provides advice about what organisations need do to comply with the Policy, and
· Part C provides advice about what non- corporate Commonwealth entities need to do to comply with the Policy.
The Guidelines should be read in conjunction with the support material available on the Indigenous Opportunities Policy website at employment.gov.au/Indigenous Opportunities Policy
These Guidelines may be updated from time to time. To ensure you are reading the most up to date version you should visit the Indigenous Opportunities Policy website.
2. What is the Indigenous Opportunities Policy?
The Indigenous Opportunities Policy states:
For the purpose of promoting employment and training opportunities for Indigenous Australians[2], where projects[3] involve expenditure over $5 million ($6 million for construction[4])[5] in regions where there are significant Indigenous populations[6], officials must:
· Consult with the IOP Administrator in the Department of the Prime Minister and Cabinet, the Commonwealth Indigenous Coordination Centres or equivalent Commonwealth Office, and community council or group, as appropriate, in the planning stages of those projects.
· In each procurement process under those projects require each tenderer to submit as part of their tender a plan for providing training and employment opportunities to local Indigenous communities and for the use of Indigenous suppliers[7] that are small and medium enterprises[8] .
3. Why do we have an Indigenous Opportunities Policy?
The Indigenous Opportunities Policy is one of a number of the Australian Government’s Closing the Gap initiatives to halve the gap in employment outcomes between Indigenousand non-Indigenous Australians within a decade.
Under the National Partnership Agreement on Indigenous Economic Participation, the Council of Australian Governments (COAG) made a commitment to strengthen current government procurement policies to maximise Indigenous employment. The Indigenous Opportunities Policy is central to this commitment. It is part of the Australian Government’s overall policy framework that non- corporate Commonwealth entities must comply with when undertaking procurement.
The Indigenous Opportunities Policy aims to increase the number of Indigenous Australians trained and employed as a result of awarding large Australian Government contract(s) as well as increasing the level of involvement of Indigenous businesses in the delivery of goods and services under those contracts. The Government acknowledges that this will involve changes in the way that some businesses operate (including Indigenous businesses). This is a key intention of the Policy.
4. Implementation
From 1 July 2011, all new Approaches to Market that meet the Policy’s requirements must apply the Policy. Please note that the Policy need only apply to new arrangements after 1 July 2011 and does not impact on any arrangements existing before this date. For example, the Policy does not need to be applied to contracts valued at over $5 million ($6 million in construction) (GST inclusive) awarded after 1 July 2011 under standing offer panel arrangements that were established on or before 1 July 2011.
5. How does the Indigenous Opportunities Policy work?
The Indigenous Opportunities Policyapplies to Approaches to Market run by non- corporate Commonwealth entities:
· which result in a contract or contracts each valued at over $5 million ($6 million in construction) (GST inclusive), and
· for which the resulting activities or services take place in a region or regions with a significant Indigenous population (a map identifying regions with a significant Indigenous population is included at AppendixA. More detailed maps can be found on the Indigenous Opportunities Policy webpage; employment.gov.au/Indigenous Opportunities Policy
The Policy requires organisations responding to Approaches to Market for Australian Government business affected by the Indigenous Opportunities Policy to have an Indigenous Training, Employment and Supplier Plan (a Plan) in place that tells the Government how they intend to:
· provide training opportunities to local Indigenous Australians
· provide employment opportunities to local Indigenous Australians, and
· utilise Indigenous businesses that are small to medium enterprises.
Organisations are required to implement their Plan and report on outcomes annually if they win an Australian Government contract to which the Policy applies. If an organisation does not meet these requirements it may face sanctions (see Section 6.6).
In practical terms, this means that many organisations will have to plan how they can train and employ Indigenous Australians locally and how they can involve Indigenous businesses in the production or delivery of goods and services for the Australian Government. The Indigenous Opportunities Policy (IOP) Administrator will offer support and advice to organisations affected by the Policy if requested.
6. How will the Policy affect organisations bidding for large government contracts?
6.1 Overview
There are four points in the procurement process at which the Indigenous Opportunities Policy could be activated:
1. when an organisation volunteers to lodge a Plan with the IOP Administrator in anticipation that it will be participating in Approaches to Market to which the Policy applies
2. as a condition of participating in an Approach to Market
3. prior to the execution of a contract or official order, or
4. as a condition of a contract or official order
The Indigenous Opportunities Policy does not apply to Australian Government grants or to procurements undertaken by entities that are not subject to the Public Governance, Performance and Accountability Act 2013.
6.2 The Indigenous Training, Employment and Supplier Plan
A Plan must set out what an organisation will do to provide training, employment and business opportunities for Indigenous Australians.
The Plan must contain information on what organisations will do in four areas:
1. training Indigenous Australians
2. employing Indigenous Australians
3. working with Indigenous businesses that are small to medium enterprises, and
4. activities which incorporate IOP objectives in to the running of the organisation as a whole.
The IOP Administrator encourages organisations to set training, employment and Indigenous business targets when designing their Plans.
Plans must be developed and submitted electronically using MyPlan, the Indigenous Opportunities Policy online management information system (https://ecsn.gov.au/IOP/home.aspx).
A copy of the Indigenous Training, Employment and Supplier Plan Template is at Appendix B.
Plans need to be submitted through MyPlan for review and organisations will receive Notification of Submission within three working days of submitting a Plan. The IOP Administrator will review each Plan within 15 working days (excluding ACT public holidays and the Christmas shut-down). Once approved, an organisation will receive Notification of Approval of its Plan.
The review of Plans will not form part of an Approach to Market assessment process, unless stated otherwise in the Approach to Market documentation. Once reviewed Plans are given an approved or rejected status.
A Plan will be rejected if it has not been completed correctly or includes activities that the IOP Administrator considers will not increase the number of Indigenous Australians trained and employed and/or the level of involvement of Indigenous businesses in the delivery of goods and services. If a Plan is rejected, the IOP Administrator will provide reasons and an opportunity for an organisation to revise and resubmit the Plan.
6.3 Implementation, reporting and monitoring
If an organisation is awarded a contract to which the Policy applies, it must implement its Plan. Implementation of Plans must be targeted to the locality and project circumstances to ensure quality outcomes.
For organisations with no experience in employing Indigenous Australians or using Indigenous businesses, there are a resources are available at employment.gov.au/Indigenous Opportunities Policy In addition, the IOP Administrator will provide advice on how to implement the Plan locally in cases where the contracting non- corporate Commonwealth entities informs the IOP Administrator of the successful tenderer/s.
If, after initial contact with the IOP Administrator, an organisation is experiencing difficulty in implementing their Plan it should email the IOP Administrator for assistance.
Organisations who have been successful in winning a contract to which the Policy applies must report annually on the implementation and outcomes achieved under their Plan against each contract. An Implementation and Outcomes Report (Report) must be submitted each year via MyPlan, the Indigenous Opportunities Policy online management information system https://ecsn.gov.au/IOP/Account.aspx/Logon
A copy of the Implementation and Outcomes Report Template is at Appendix C.
The IOP Administrator will review organisations’ annual Reports to assess whether they have complied with their Plans. In addition, the IOP Administrator will select a sample of projects for review each year and will work with the procuring entity to undertake these reviews.
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Non- corporate Commonwealth entities are not responsible for monitoring implementation of Plans, however they can build this into their contract management process if they wish.
6.4 Applying for re-approval
Plans are current for three years unless extended by the IOP Administrator. Extension of the life of a Plan will be granted on the basis of achieving significant outcomes in relation to Indigenous training, employment and business opportunities. When the currency of a Plan expires an organisation must seek approval of a new/updated Plan if it is currently under a contract(s) with the Australian Government to which the Policy applies.
6.5 Non-compliance
Organisations that are awarded contracts affected by the Indigenous Opportunities Policyare required to:
· implement their Indigenous Training, Employment and Supplier Plan, and
· report annually to the IOP Administrator on the implementation of and outcomes achieved under the Plan.
The IOP Administrator will contact each organisation if it fails to meet these requirements and the organisation will be given the opportunity to address any of the matters raised. The IOP Administrator will also advise affected non- corporate Commonwealth entities of any action it takes in this regard.
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6.6 Consequences of non-compliance
If an organisation that has won a relevant contract(s) does not take adequate steps to implement its Plan or report on the implementation of its Plan it will:
· have its Plan suspended, meaning it will not be able to respond to future Approaches to Market to which the Policy applies, and will not be able to enter new contracts for Government business affected by the Indigenous Opportunities Policy
· be listed on the IOP website as an organisation who is non-compliant and whose plan is currently suspended
· be under greater scrutiny by the IOP Administrator in relation to implementation of its Plan for future contracts, and may face consequences related to sanctions written into contracts
Where an organisation who has won a relevant contract(s) does not implement or does not take appropriate steps to implement its Plan, the Plan will be suspended and the organisation will not be permitted to participate in procurements to which the Policy applies while the Plan is suspended. This will be the case for all Australian Government procurements to which the Policy applies.
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6.6 The suspension process
The IOP Administrator will follow the process outlined in Table 1 to suspend a Plan in instances in which:
· an annual Implementation and Outcomes Report is not provided by an organisation, or
· an organisation has not taken adequate steps to implement its Plan (the table refers to these instances as a breach).