The proportion of State Government contracts awarded to Aboriginal businesses has grown for the third year in a row, latest Aboriginal Procurement Policy (APP) figures show.
In the 2020-21 financial year, the McGowan Government awarded 6.5 per cent of its contracts to Aboriginal businesses – more than double the 3 per cent target for that year.
Since its introduction in July 2018, the McGowan Government’s APP has awarded 697 contracts to 209 Aboriginal businesses, with a combined value of more than $476 million.
Additionally, 97 per cent of these Aboriginal businesses are Western Australian.
The APP’s purpose is to increase contracting opportunities for Aboriginal businesses and support employment and business opportunities for the Aboriginal community.
Its progressive whole-of-government contracting targets have consistently been exceeded, including:
- 2018-19: 1 per cent required, 4.7 per cent achieved;
- 2019-20: 2 per cent required, 5.5 per cent achieved; and
- 2020-21: 3 per cent required, 6.5 per cent achieved.
Procurement undertaken across agencies achieved an average contract value of around $520,000, excluding panel contracts and those valued at more than $25 million. More than 76 per cent of contracts awarded to Aboriginal businesses in 2020-21 were valued at more than $100,000.
The highest performing agencies included the Departments of Communities and Education, Main Roads and the Public Transport Authority.
Aboriginal businesses have supplied a variety of works, goods and services, including construction and maintenance, human resources services, cleaning services, and community and social services.
Now in its second term, the APP was expanded on January 1, 2022 to include Aboriginal participation requirements determining that certain government contracts need to meet Aboriginal employment or subcontracting targets.
The 2020-21 APP Performance Report and summary of the first three years of the policy are available on the WA Government website.
As stated by Finance and Aboriginal Affairs Minister Dr Tony Buti:
“Prior to 2018, there was no policy in place to set targets to measure contracting outcomes for Aboriginal businesses in Western Australia.
“The McGowan Government recognises the need to build capacity and support for the development of the Aboriginal business sector.
“Growing this sector creates better financial outcomes for Aboriginal Western Australians and is part of broader McGowan Government initiatives towards self-determination and inclusion.
“I’m proud of the Aboriginal Procurement Policy’s outcomes, which have seen consistent year-on-year growth in WA Government contracting with Aboriginal businesses.
“The policy’s strong performance in its first term provided a solid foundation for its expansion into employment and subcontracting targets, which came into effect at the start of 2022.”
