Involved in Aboriginal Procurement? You MUST be certified!
The Northern Territory Government has now advised that from 1 April 2023, only certified or provisionally certified Aboriginal entities will be recognised under the Aboriginal Procurement Policy.
If you tender for government work, this means you must be able to evidence your certification status at the point of contract award to be recognised under the policy.
If you are not already certified, you can register with the NT Indigenous Business Network to access transitioning arrangements to become provisionally certified. A good source of background information in addition to the NTIBN is Supply Nation. They identify what is required to achieve certification before incorporating a new entity so that you can ensure your final result will pass the necessary tests.
For example, in relation to an Indigenous Joint Venture (IJV), the IJV must be able to demonstrate at least fifty percent (50%) Indigenous control of the joint venture and Indigenous involvement in the management of the joint venture, with Indigenous persons being actively involved in and aware of the key business decisions regarding the JV’s finances, operations, personnel and strategy.
Further, it must be able to demonstrate ‘Commercial Independence’, which is defined as:
‘’To be Commercially Independent, an IJV must reflect a collaboration of the JV parties’ resources, skills and assets and not totally or fundamentally depend on non-commercial relationships and use of resources (e.g. equipment, personnel, facilities, financial or bonding support) with another non-Indigenous enterprise or enterprises to deliver its core service offering(s).’’
These are key aspects that you must be across before you start incorporating structures, tendering for work or attempting to enter into contracts.
Would you like to know more about Indigenous business and procurement, or how your entity can meet the requirements? Please call Dominic McCormack on (08) 8941 6355 or email dominic@bowden-mccormack.com.au