Indigenous Procurement Pre-qualification Scheme: Pioneering Change in Local Government Procurement

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Indigenous Procurement Pre-qualification Scheme: Pioneering Change in Local Government Procurement

LGP is proud to introduce the Indigenous Procurement Pre-qualification Scheme (IPPQS), a ground breaking initiative and the first of its kind in the Australian local government sector. This innovative platform is designed to connect NSW councils with Indigenous businesses, fostering meaningful collaborations and promoting economic inclusion, reconciliation, and cultural diversity. By simplifying the procurement process for councils, the scheme helps facilitate economic growth for First Nations communities.

Addressing Engagement Challenges

Recognising the barriers Indigenous enterprises face when engaging with councils, LGP has taken the initiative to build on its procurement relationships with all 128 councils in NSW to introduce them to select Indigenous businesses.

It is important to note, this Prequalification Scheme does not apply a tender process to the participating Indigenous enterprises.  It does not leverage LGP’s Prescription status, which is why we have capped the engagement value to $249,999 (including GST).

Instead, the IPPQS serves as a safe and supportive space where councils can identify, access, and engage with pre-qualified Indigenous businesses. This strategic effort promotes economic inclusion, fosters partnerships, and supports the growth of Indigenous enterprises.

The scheme offers several key features, including:

  1. A pre-qualified list of Indigenous businesses that have not undergone a formal tender process.
  2. An engagement limit of $249,999 (including GST) for councils, ensuring procurement policies and authority delegations are followed.
  3. High-level due diligence conducted by LGP on all participating Indigenous businesses, including validation of indigenous business credentials and insurances.
  4. Integration with LGP’s VendorPanel site, enabling Indigenous businesses to receive Request for Quotations.
  5. Participation limited to businesses ‘Certified’ by Supply Nation or ‘Assured’ by the NSW Indigenous Chamber of Commerce.
  6. Customised Indigenous Procurement Dashboards for councils.
  7. 100% of management fee revenues generated through this scheme will be reinvested into selected NSW Indigenous community programs.
Benefits for NSW Councils

Councils engaging with the scheme can strengthen their brand and reputation by proactively collaborating with Indigenous businesses. The initiative also drives economic growth, introduces supply chain diversity and innovation, and creates employment opportunities for Indigenous people.

Additionally, councils can integrate their existing indigenous business engagement strategies, as well as achieve new ESG (Environmental, Social, and Governance) procurement initiatives, positioning your council as a leader in NSW local government with measurable spend growth across the Indigenous business sector.

Driving Economic and Social Outcomes

The IPPQS delivers a range of benefits for both councils and Indigenous enterprises, including:

  • Expanded Promotion for Indigenous Enterprises: Enhanced visibility and connections with council buyers.
  • Support for Indigenous Business Growth: Access to larger markets and opportunities for scalability.
  • Employment Opportunities: New business engagements that create jobs within Indigenous communities.
  • Regional Economic Development: Contribution to local economies by sourcing from Indigenous businesses.
  • Social Procurement Outcomes: Helping councils achieve social sustainability goals.
Participation and Expression of Interest

For Indigenous businesses interested in joining the scheme, the process is straightforward. Firstly, in order to participate, businesses must have their certificates of insurance ready and hold one of the following indigenous business credentials:

  • Certified member status from Supply Nation, and/or
  • Assured membership from the NSW Indigenous Chamber of Commerce.

With these certifications indigenous businesses simply lodge their ‘Expression of Interest’ (EOI) via the LGP website (again this is not a Tender process), complete the web form, accept the Terms & Conditions, and submit their application.

LGP will review EOI submissions with approved indigenous businesses receiving a ‘Welcome Pack’ with instructions on how to self-register in VendorPanel.  Once this process is complete he LGP endorsed indigenous businesses can then be seen, accessed and receive Request For Quotations from councils across NSW.

A Strategic Driver for Reconciliation and Inclusion

The IPPQS is more than just a procurement tool—it is a strategic driver of change. By connecting councils with pre-qualified Indigenous enterprises, it advances economic opportunities, promotes reconciliation, and fosters inclusion across NSW.

Through this initiative, LGP is proud to support stronger, more inclusive economic opportunities for Indigenous communities and contribute to meaningful social outcomes in the local government sector.

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