The Indigenous Affairs Minister, Senator Amanda Vanstone, says a proposed Northern Territory-wide boycott of a Federal Government tender scheme for Indigenous legal services is concerning.

Senator Vanstone says Indigenous people are not getting value for money and the Government is offering more than $120 million of contracts to provide other legal services.

The Northern Territory Aboriginal Justice Advocacy Committee says it will refuse to cooperate with the process.

Senator Vanstone says she would be concerned if good services missed out because they did not put in an application.

"The bottom line is when you tender, when you put people to competition you find out who can deliver the best services," she said.

"That's what we want to do, not give people money because of who they are but give people money because of the services that they can deliver to Indigenous Australians on the ground."