26 September 2023

Aboriginal procurement chances lacking

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An audit of a project to ensure the participation of Aboriginal and Torres Strait Islander people in major Government procurement opportunities has found that while the system was designed properly, its administration was lacking.

In his report Aboriginal and Torres Strait Islander Participation Targets in Major Procurements, Auditor-General Grant Hehir assessed the effectiveness of ‘Mandatory Minimum Requirements’ (MMRs) for Aboriginal and Torres Strait Islander participation in achieving the program’s policy objectives.

“While the MMRs for Aboriginal and Torres Strait Islander participation were effectively designed, their administration has been undermined by ineffective implementation and monitoring by the policy owner and insufficient compliance by entities,” Mr Hehir said.

He said the MMRs had not been implemented and monitored effectively due to inadequate implementation planning and delays in establishing a centralised monitoring system.

“While the policy owner has publicised the MMRs, it has not provided entities and contractors sufficient guidance on complying with the MMRs,” Mr Hehir said.

“The current regime for enforcing compliance with MMR reporting requirements is not operating effectively and, as a result, the policy outcomes have not been evaluated.”

He said selected entities’ compliance with the MMRs fell short of the standard required for managing major procurements.

“In the procurement phase, while selected entities mostly recognised when the MMRs applied, they failed to comply with all required steps,” Mr Hehir said.

“In the contract management phase, entities have not established appropriate performance reporting arrangements.”

He said that where reporting had been occurring, entities had not gained appropriate assurance over reported performance.

The Auditor-General’s report can be accessed online at this PS News link and his 76-page report at this Link.

The Audit Team was Daniel Whyte, Lynette Tyrrell, Iain Gately, James Woodward and Deborah Jackson.

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