Could my purchase provide a social benefit for the WA Community?

There are policies and social procurement initiatives that support supplier diversity via contracting with Aboriginal businesses and Disability Enterprises.

Purchasing goods and services from these businesses is valuable as it:

  • grows economic participation and prosperity of under-represented and marginalised groups
  • supports the sustainability of these businesses
  • creates jobs and provides meaningful work for Aboriginal people and people with disabilities

Aboriginal Procurement Policy (APP)

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What is the Aboriginal Procurement Policy and how does it affect my agency? 

Under the APP your agency is required to award a percentage of your contracts over $50,000 to Aboriginal businesses and not for profit organisations. The targets also apply to Government Trading Enterprises.

The 2018-2019 target was 1% of government contracts, which increased to two percent in in 2019-2020 and will increase again to 3 per cent In 2020-2021. 

There are inclusions and exclusions for the types of contracts that are relevant, please refer to the APP Guide

Social procurement initiatives

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Are there other initiatives that support social procurement? 

You can buy directly from ADEs or registered Aboriginal businesses as allowed in the State Supply Commission's Open and Effective Competition policy.

You can also buy directly from ADEs or registered Aboriginal businesses where there is a mandatory Common Use Arrangement (CUA) in place. If your agency is a partially exempt public authority and the purchase is valued at more than $250,000, you must involve the Department of Finance, as required by your partial exemption terms and conditions.

Purchasing from Aboriginal businesses

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How can I purchase from an Aboriginal business?

An Aboriginal business is considered to be any entity or organisation that is a minimum of 50% owned or run by an Aboriginal interest.  These businesses must be registered on the Aboriginal Business Directory WA or Supply Nation

An agency can include Aboriginal businesses in an open tender process, or contract with them directly via the Aboriginal Business Initiative.

What’s on offer?

There are over 600 WA businesses, plus hundreds more nationally. The directories list all Aboriginal businesses that can provide goods such as stationery, furniture and corporate wear and services such as, consulting, design and education.

Purchasing from Australian Disability Enterprises (ADE)

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How can I purchase from an ADE?

What is the ADE Initiative? 

The ADE Initiative supports businesses that employ people with disabilities. 

An ADE offers opportunities to engage in a wide variety of work tasks and offer similar working conditions as other employers.  ADEs give people with a disability the opportunity to earn a wage and contribute to and connect with their local community.  ADE employees gain training and experience to step into open employment or to continue in supported employment. 

ADEs currently employ over 2,000 people in Western Australia.  More agencies using ADEs will mean more people with disabilities are employed in our community. 
Buying from an ADE makes good business sense both commercially and socially.

Which ADEs are in Western Australia?

An agency can purchase goods and services from eight disability enterprises in Western Australia.

They are
•    Activ
•    Goodwill Engineering
•    Good Samaritan Industries
•    Intelife Group
•    Shire of Manjimup Property Care Team
•    ParaQuad Industries
•    Westcare
•    Workpower 

ADEs have a commitment to quality and adopt national and international standards of best practice.  All ADE services meet National Disability Services Standards and are independently audited and certified. Many are ISO9001 (Quality Management Systems) accredited.

What’s on offer? 

The eight local ADE’s supply a variety of quality products and services.

They include:
•    Grounds Maintenance
•    Property Maintenance & Repairs    
•    Media & Internet Services    
•    Catering    
•    Printing    
•    Fire Equipment Services    
•    Mail Management    
•    Packaging    
•    Fitting, Assembly & Refurbishment    
•    Timber Products    
•    Textile Products    
•    Paper & Cardboard Products    
•    Plastic Products    
•    Mining Supplies & Consumables    
•    Cleaning Services    
•    Safety & Personal Protection    
•    Recycling    
•    Electrical & Electronic Equipment    
•    Picture Framing    
•    Light Engineering & Metal Fabrication    
•    Land Management & Environmental Rehabilitation    
•    Warehousing & Inventory Management

Visit Western Australian Disability Enterprises or Buyability for more detailed information on what’s available.

The social procurement initiative buying process

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Follow this process to make a purchase from an Aboriginal business or ADE

Applying the Aboriginal Procurement Policy requires you to follow standard procurement policies and processes for goods and services, community services and works. 

Applying the Australian Disability Enterprise Initative or Aboriginal Business Initiative to buy directly involves the following steps: 

  1. If the purchase is under $50,000, form a contract with the business. It’s recommended to use the Verbal Quotation Template.
  2. If the purchase is over $50,000, you will need approval from your Accountable Authority for an exemption (you can use the Request for Exemption for Aboriginal Businesses and Australian Disability Enterprises Template). Make sure you document your decision and that you can demonstrate that value for money has been obtained.
  3. Form a contract and award directly to the business.  It’s recommended to use the Request for Quote/Tender document and Award letter. Involve Finance consistent with your partial exemption terms and conditions.

If your direct purchase is from a registered Aboriginal business, and it meets the requirements of the APP, it will count towards your agency’s targets. 

There are guides available that provide more details about buying from the Aboriginal business sector and ADEs.

Announcements

Horizon view of country through rocks.
News story:
Finance focuses on capability building to support Aboriginal businesses.
Two sales people from IQ Traffic talking with a customer at a trade expo
News story:
The Minister for Finance, the Hon Ben Wyatt opened Finance’s Aboriginal Business Expo.
Several people standing around a market stall.
Media release:
Mid-year reporting of the Aboriginal Procurement Policy has confirmed that government is on track to more than quadruple the target set for the first year.
Page reviewed 1 November 2019