WA Government’s Aboriginal procurement exceeding expectations

8th May 2020

Government’s Aboriginal procurement exceeding expectations

  • McGowan Government on track to exceed its mandated target by over 250 per cent for 2019-20 financial year
  • More than $83 million worth of contracts awarded to Aboriginal businesses in July to December 2019
  • 51 different businesses have secured contracts, with 98 per cent based in Western Australia

The McGowan Government continues to exceed its Aboriginal procurement targets with the 2019-20 mid-year snapshot revealing the Government is on track to surpass targets by more than 250 per cent.

Aboriginal businesses were awarded more than five per cent of all Government contracts from July to December 2019, well above the target of two per cent. In this period, 90 contracts, worth more than $83 million, were awarded to 51 registered Aboriginal businesses. All but one of those businesses were Western Australian.

In the July to December period last year, the two per cent target was met by 18 government agencies, and four of those agencies awarded more than 10 per cent of their contracts to Aboriginal businesses.

The McGowan Government’s Aboriginal Procurement Policy commenced on July 1, 2018 and required agencies to award at least one per cent of contracts to Aboriginal businesses, rising to three per cent by 2021.

It achieved strong results in year one, with 4.77 per cent of contracts awarded to registered Aboriginal businesses, with a total contract value in excess of $167 million awarded to 92 different Aboriginal-owned businesses in various industries.

The policy aims to successfully deliver government contracts while improving the economic prosperity of Aboriginal people in businesses, their suppliers, sub-contractors and the broader Aboriginal community.

The Department of Finance has hosted two Aboriginal Business Expos since the implementation of the policy to promote businesses and services available to government agencies.

Comments attributed to Finance and Aboriginal Affairs Minister Ben Wyatt:

“The Government is pleased to see continued growth in the Aboriginal business sector, following solid results from year one of the policy in practice. “A significant increase in the number and value of government contracts awarded in the first six months of this financial year illustrates the ongoing success of this policy. “The results also highlight the impressive range, ability and capacity of Aboriginal businesses servicing the community in Western Australia. “Some agencies are well exceeding the Government’s policy targets, while others have more work to do. “The State Government will continue to encourage all agencies to work with Aboriginal businesses.”

Minister’s office – 08 6552 5900