Aboriginal businesses secure $254m

The state government has reported a big increase in the number of contracts awarded to Aboriginal organisations but the value was unchanged from the prior year.

A total of 356 contracts were awarded to 167 Aboriginal organisations in the year to June 2023.

That equated to 6.86 per cent of all state government contracts, well above the target of 3.5 per cent.

In the previous financial year, the government awarded 262 contracts to 119 organisations.

The total value of contracts awarded to Aboriginal organisations in FY23 was $254 million, which matched the annual high set in the prior year.

Diversified contractor Garli, led by managing director Darren Lundberg, was the biggest winner last year, securing multiple contracts collectively worth $59.6 million.

Its recent projects include the Bindoon North Bypass and the Causeway cyclist bridge.

Another big winner was Buru Rehab, which secured a $59.1 million contract for rehabilitation earthworks at the failed Ellendale diamond mine in the Kimberley.

Other Aboriginal businesses winning government work included Gnalla Environmental ($13.5 million), which is jointly led by directors Mick Matera and Mitch Matera, GBSC Yurra ($9.5 million) and Ngaanyatjarra Council Aboriginal Corporation.

Three government agencies accounted for 71 per cent of all contracts awarded last year.

Main Roads awarded 83 contracts worth $86 million, or 34 per cent of the total value.

The Department of Mines Industry Regulation and Safety awarded eight contracts worth $60 million.

This included the Buru Rehab contract.

The Department of Communities awarded 62 contracts worth $34 million.

The recipients included Nirrumbuk Aboriginal Corporation, which operates the Nyirrwa Murrgurlayi facility in Broome under an Employment and Education Housing program.

Finance Minister Sue Ellery said the government was proud of the results it has achieved since implementing the Aboriginal Procurement Policy in 2018.

“This policy has provided significant outcomes for Aboriginal businesses, especially those based in our regions,” she said.

“A fantastic example of this is Nirrumbuk Aboriginal Corporation, which has increased employee numbers from 80 to 215 and expanded its services to support Aboriginal economic growth in the Kimberley as a result of working with the state government.”

Over the past five years, more than $1 billion worth of state government contracts have been awarded to Aboriginal organisations under the policy.

To qualify for inclusion, contracts must be valued at $50,000 and above and awarded to a registered Aboriginal business.

Infrastructure WA recommended changes to the APP in a report released early this year.

As well as targeting a certain percentage of contracts to Aboriginal businesses, it called for targets to also encompass contract value and advocated new ‘stretch’ targets.

The government rejected this advice.

“The Department of Finance assessed that there is a larger potential benefit if the targets are based on the number of contracts as opposed to a monetary value,” the government said in February.

“A monetary value or ‘carve out’ could result in a smaller number of contracts awarded to larger Aboriginal businesses, disadvantaging smaller businesses.”