❓ This parliamentary question scrutinises the effectiveness and integrity of Western Australia's Aboriginal Procurement Policy (APP), particularly regarding its impact beyond contract numbers and the verification of Aboriginal businesses. The answer outlines current metrics, registration requirements, and general procurement integrity rules.
AnsweredQoN 532Legislative Council
QuestionView source ↗
Aboriginal Procurement Policy
532. Hon Tjorn Sibma to
the minister representing the Minister for Finance:
I refer to the
November 2024 report by the Office of the Auditor General into the Aboriginal
Procurement Policy (APP) and to work undertaken by the Australian National
University into the business structure of companies eligible for the federal
Indigenous Procurement Program (IPP).
(1) How is the state government measuring
the outcomes and efficacy of the APP beyond simply the number and value of
contracts awarded—for example, in terms of genuine employment gains and
business capacity building in Western Australia?
(2) What guidance exists to procurement
officers making recommendations in respect of the bona fides of an Aboriginal
business and/or Aboriginal Controlled Community Organisation (ACCO) for the
purposes of utilising the APP?
(3) What work is being done to ensure the
integrity of the APP and to optimise value-for-money outcomes from these
procurement decisions?
532. Hon Tjorn Sibma to
the minister representing the Minister for Finance:
I refer to the
November 2024 report by the Office of the Auditor General into the Aboriginal
Procurement Policy (APP) and to work undertaken by the Australian National
University into the business structure of companies eligible for the federal
Indigenous Procurement Program (IPP).
(1) How is the state government measuring
the outcomes and efficacy of the APP beyond simply the number and value of
contracts awarded—for example, in terms of genuine employment gains and
business capacity building in Western Australia?
(2) What guidance exists to procurement
officers making recommendations in respect of the bona fides of an Aboriginal
business and/or Aboriginal Controlled Community Organisation (ACCO) for the
purposes of utilising the APP?
(3) What work is being done to ensure the
integrity of the APP and to optimise value-for-money outcomes from these
procurement decisions?
AnswerView source ↗
I thank the member
for some notice of the question. The following answer has been provided to me
by the Minister for Finance.
(1) The primary metric used to assess the Aboriginal Procurement
Policy's performance are annual percentage targets based on the number of
contracts agencies award to Aboriginal suppliers. The target is 5% for 2026–27
to 2030–31. The Aboriginal Procurement Policy also requires head contractors on
eligible contracts over $5 million to commit to meeting Aboriginal participation
requirements, comprising an Aboriginal employment or an Aboriginal
subcontracting target.
(2) The Aboriginal Procurement Policy requires that for
contracts to be counted against the target, they must be with a registered
Aboriginal business, which are those listed on Supply Nation's Indigenous
Business Direct or the Aboriginal Business Directory of Western Australia, or
an Aboriginal Community Controlled Organisation. The Department of Treasury and
Finance engages regularly with the directory providers on various matters,
including audits relating to the integrity of the directories.
(3) The Western Australian procurement
rules require that all procurements are conducted with integrity, procurement
decisions are documented, and that all government contracts deliver value for
money, including those with Aboriginal businesses or Aboriginal
community–controlled organisations.
for some notice of the question. The following answer has been provided to me
by the Minister for Finance.
(1) The primary metric used to assess the Aboriginal Procurement
Policy's performance are annual percentage targets based on the number of
contracts agencies award to Aboriginal suppliers. The target is 5% for 2026–27
to 2030–31. The Aboriginal Procurement Policy also requires head contractors on
eligible contracts over $5 million to commit to meeting Aboriginal participation
requirements, comprising an Aboriginal employment or an Aboriginal
subcontracting target.
(2) The Aboriginal Procurement Policy requires that for
contracts to be counted against the target, they must be with a registered
Aboriginal business, which are those listed on Supply Nation's Indigenous
Business Direct or the Aboriginal Business Directory of Western Australia, or
an Aboriginal Community Controlled Organisation. The Department of Treasury and
Finance engages regularly with the directory providers on various matters,
including audits relating to the integrity of the directories.
(3) The Western Australian procurement
rules require that all procurements are conducted with integrity, procurement
decisions are documented, and that all government contracts deliver value for
money, including those with Aboriginal businesses or Aboriginal
community–controlled organisations.
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