The McGowan Government is updating its Aboriginal Procurement Policy to include Aboriginal employment targets for the first time.
It is also broadening the policy, which currently prescribes targets for percentage of government contracts to be awarded to Aboriginal businesses, to include spend targets for Aboriginal subcontracting on government projects.
The updates mean suppliers will have a contractual obligation to meet an Aboriginal employment target or an Aboriginal subcontracting target from January 1, 2022.
The Aboriginal employment targets are based on region by region demographics and are measured as a percentage of the total contract workforce:
- 10 per cent for Pilbara and Kimberley;
- 5 per cent for Gascoyne, Mid-West and Goldfields-Esperance;
- 2 per cent for Perth metropolitan area, South-West, Great Southern, Peel and Wheatbelt.
The subcontracting targets will reflect current Aboriginal procurement targets – measured as a percentage of total contract value – and will increase from 3 per cent in 2021-22, to 3.5 per cent in 2022-23 and 4 percent in 2023-24.
The new requirements will apply to goods, services, and works contracts valued at $5 million and above advertised from 1 January 2022 within the industries of construction, community services, education and training, and public administration and finance.
It will also apply to contracts valued at $5 million and above where services will be delivered predominantly to Aboriginal people or target the specific needs of Aboriginal people.
As stated by Finance Minister Tony Buti:
“The State Government has significant employing and purchasing power, as demonstrated by the McGowan Government’s ongoing investment in transport infrastructure, schools, health and housing.
“The intent of the Aboriginal Procurement Policy is to ensure we can build the capacity of Aboriginal businesses in WA so that opportunities get bigger over time.
“We are already seeing some government agencies, such as Main Roads, exceeding Aboriginal procurement targets on some of their projects and achieving great outcomes.
“I look forward to watching the continued growth of this sector in WA, and the wider benefits that stem from working with the local Aboriginal business sector.”
As stated by Aboriginal Affairs Minister Stephen Dawson:
“The State Government’s Aboriginal Procurement Policy has been tried and tested, and proven to have a positive impact on Aboriginal businesses around Western Australia.
“I welcome any initiative that helps support the growth of the Aboriginal business sector and increases the level of contracting between government departments and Aboriginal businesses.
“Employment targets are a great next step for the procurement policy and I look forward to it delivering real jobs on the ground for Aboriginal people.
“I encourage Aboriginal businesses to engage with this policy to find out how they can benefit from State Government procurement opportunities into the future.”
