First Peoples
Aboriginal and Torres Strait Islander peoples should be aware that this resource may contain images or names of people who have since passed away.
SHARE
Implementation of the Aboriginal Procurement Policy: performance audit
| Attachment | Size |
|---|---|
 Implementation of the Aboriginal Procurement Policy: performance audit
|
1.32 MB |
This report details the findings of a performance audit of the Aboriginal Procurement Policy introduced by the Western Australian Government in 2018 to increase contracting opportunities for Aboriginal businesses. It concludes the policy has been partially effective in providing opportunities for Aboriginal businesses to supply to State entities and supporting employment and economic development for Aboriginal communities.
The number and value of contracts with Aboriginal businesses has increased since the policy was introduced, and the State Government overall has met the policy target each year since its introduction. However, this is based on the strong performance in procurement practices of a few large State entities in particular, while the majority have either not consistently met targets or have never met them.
Contracting is also unevenly distributed across industries, being heavily weighted towards building and facility maintenance and heavy construction. This pattern does not reflect the overall balance of government spending and highlights gaps in sectors with more specialised skills like IT, where very few contracts are held with Aboriginal businesses. There are indications of a positive impact on Aboriginal employment, but this has not been effectively tracked or evaluated.
Recommendations for contracting agencies
- Consider ways to increase direct engagement with Aboriginal businesses and improve compliance with Aboriginal participation requirements.
- Review procurement strategies and processes to ensure they are not unduly onerous for potential suppliers who are seeking to work with Government for the first time, having regard to relevant legislative and policy requirements, including a focus on appropriately using the flexibility in the policy to support Aboriginal suppliers.
- Ensure value for money assessments adequately assess financial and non-financial value for money considerations and are well documented, particularly when direct procurement or restricted tenders are used.
- Consider ways to assess the broader impacts of procurement from Aboriginal businesses, e.g. by post-project review surveys and evaluations.
