26 September 2023

PS Indigenous purchasing better than ever

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The latest Aboriginal Procurement Policy (APP) figures reveal that the proportion of State Government contracts awarded to Aboriginal businesses has grown for the third year in a row.

In 2020-21, 6.5 per cent of Government contracts were awarded to Aboriginal businesses — more than double the three per cent target for the year.

Since the APP was introduced in July 2018, 697 contracts have been awarded to 209 Aboriginal businesses, with a combined value of more than $476 million.

Additionally, 97 per cent of the Aboriginal businesses were Western Australian.

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.

Minister for Finance and Aboriginal Affairs, Tony Buti said Aboriginal businesses 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 has been expanded to include Aboriginal participation requirements, determining that certain Government contracts need to meet Aboriginal employment or sub-contracting targets,” Dr Buti said.

“Growing the Aboriginal business sector creates better financial outcomes for Aboriginal Western Australians and is part of broader Government initiatives towards self-determination and inclusion.”

A summary of the first three years of the policy can be accessed on the WA.gov.au website at this PS News link.

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