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State and Federal (and local) governments have incorporated buying goods and services from Indigenous businesses into  procurement frameworks when tendering for government contracts. The level of procurement from Indigenous businesses that has been incorporated into tender applications can hold a weighting that can decide a winning contract.

 

This not only impacts primary tenderers, but also suppliers and subcontractors to the primary tenderers, as the primary tenderers seek suppliers/subcontractors who can boost Indigenous procurement spend that in turn contributes to the Indigenous procurement tender requirements.

 

This makes procurement from Indigenous businesses an advantage to your business where you are supplying to government and primary contractors.

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 Western Australia Aboriginal Procurement Policy

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• Applicable from 1 January 2023, the WA Aboriginal Procurement Policy has been updated to include new Aboriginal participation requirements for goods, services, and works contracts.

• Suppliers to the WA Government are required to meet an Aboriginal business subcontracting target. Aboriginal participation requirements apply to all contracts with an estimated contract value of $5 million and above that are delivered in the following industries:

  • construction and maintenance

  • community and social services

  • education and training

  • public administration and finance

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The Aboriginal business subcontracting target requires suppliers to subcontract a certain percentage of the total contract value to a registered Aboriginal business(s), per the targets below:

• 2022/23 Financial year: 3.5% of the total contract value

• 2023/24 Financial year: 4% of the total contract value

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Commonwealth Indigenous Procurement Policy

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The  Commonwealth Indigenous Procurement Policy was launched on 1 July 2015 and has three main parts:

• A target number of contracts that need to be awarded to Indigenous businesses

• A requirement that Indigenous businesses are the first to be approached to quote for remote contracts and contracts valued between $80,000 - $200,000

• Mandatory minimum Indigenous participation requirements (1.75% in 2022/23 and 2% in 2023/24) in Commonwealth contracts valued at or above $7.5m that are awarded in one or more of 19 specified industry categories

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Gunada Workwear is 100% Indigenous owned, and can assist your business to increase its successful tendering prospects for government and corporate tenders.