Government Policy assists Indigenous employment and procurement

 

You can choose to buy from WINYA simply becaise we provide high-quality, Commercial-Grade Office Furniture and Hospital seating at competitive pricing and Bespoke Craftsman pieces. Or you can choose to buy from WINYA for socially responsive procurement commitments and we can assist you with our on-site programs.

 

The Federal Government's Indigenous Opportunities Policy (IOP) aims to maximise Aboriginal and Torres Strait Islander employment opportunities and the engagement of Indigenous businesses through Australian Government procurement processes. NSW GOVERNMENT see below

 

On 18 September 2013, responsibility for this program was transferred to the Department of the Prime Minister and Cabinet.

 

The Indigenous Opportunities Policy (IOP) was developed as part of the Council of Australian Government’s (COAG) commitment under the National Partnership Agreement on Indigenous Economic Participation to strengthen government procurement policies to maximise Indigenous employment and business opportunities.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As at 19 May 2011 there has been a Commonwealth Procurement Rules exemption to the Mandatory Procurement Procedures for small and medium enterprises that are 50 per cent Indigenous owned. The exemption complements the IOP but operates separately and is administered by the Department of Finance.

 

The exemption to Division Two of the Commonwealth Procurement Rules (CPR) for Indigenous Small and Medium Enterprises (SMEs) has been developed to assist the Government implement the Council of Australian Governments National Partnership Agreement on Indigenous Economic Participation. This exemption seeks to:

 

• provide increased opportunities for greater access to the Australian Government procurement market for all Indigenous SME’s;

• raise awareness among officers undertaking procurement of the Government’s commitment to the ‘Closing the Gap’ strategy on Indigenous disadvantage; and

• complement the Indigenous Opportunities Policy (IOP) administered by the Department of Prime Minister and Cabinet (PM&C).

 

 

Exemption to Division Two of the Commonwealth Procurement Rules (CPR) for Indigenous Small & Medium Enterprises FAQs

 

Does the exemption apply to both State Government agencies and Commonwealth entities, or will it only apply to Commonwealth entities?

The exemption only applies to Commonwealth entities, that is, all non-corporate Commonwealth entities and prescribed corporate Commonwealth entities under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).  These relevant Commonwealth entities are required to comply with the CPRs. The exemption applies to the additional rules set out in Division 2 of the CPRs. The rules in Division 1 of the CPRs still apply to the procurement, including the requirement to achieve value for money.

 

What type and size of procurements can the exemption be applied to?

The exemption can be applied to any procurement where its estimated value is at or above the relevant procurement threshold ($80,000 for general goods and services, and $7.5 million for construction services).

 

What are the benefits for relevant Commonwealth entities and Indigenous businesses who apply the exemption to a procurement?

The exemption allows relevant Commonwealth entities to contract directly with Indigenous SMEs without the need to conduct a full tender process on the condition that the procurement represents value for money.

 

The exemption aims to reduce the costs and administrative requirements for Indigenous businesses and relevant Commonwealth entities, and assist the Government on ‘Closing the Gap’ on Indigenous disadvantage by providing an avenue for Indigenous businesses to prosper.

 

Can the exemption be used to award a contract to an Indigenous SME who then subcontract work onto a non Indigenous business or SMEs?

The exemption can be utilised for the engagement of Indigenous owned SMEs. Sub-contracting is a legitimate business practice and it is for Indigenous owned SMEs to decide whether or not to subcontract to Indigenous or non-Indigenous entities according to their own business needs.

 

 

NSW GOVERNMENT

 

The NSW Public Sector Employment and Management Amendment (Procurement of Goods and Services) Act 2012 streamlined Government procurement processes. Together with the recommendations of the Taskforce, the Act presents an opportunity to increase Aboriginal employment through Government social procurement and provides a new legislative framework for supportive policy measures. Social procurement is purchasing that accounts for the social outcomes of buying goods and services from a given supplier. Social procurement acknowledges the public value of positive social outcomes that are generated or supported through procurement processes.

 

The performance agreements of Directors General of NSW Government departments will include implementation of the specific initiatives in OCHRE, as well embedding the new partnership approach with Aboriginal people including changing agency practices.

 

Direction 2013 - 04 [1]

Direction 2013 – 04: Scope for government agencies to support Aboriginal businesses

This Direction deals with:

 

• procurement of goods and services by/for a government agency within the meaning of the Public Works and Procurement Act 1912 [2]

• NSW Procurement Board’s policy commitments under the NSW Government’s Plan for Aboriginal Affairs, OCHRE [3].

 

This Direction does not deal with the procurement of construction or infrastructure.

 

A government agency may purchase goods and services valued up to $150,000 (including GST) from a recognised Aboriginal business, provided:

• the supplier’s rates for the goods or services are reasonable and consistent with normal market rates; and

• the agency obtains at least one written quotation. Goods and services available through whole-of-government procurement arrangements are included in this Board Direction. A ‘recognised Aboriginal business’ is one which:

• is certified as an Indigenous business by Supply Nation [4] (formerly the Australian Indigenous Minority Supplier Council), or

• is certified as an Indigenous business by the NSW Indigenous Chamber of Commerce [5], or

• meets the definition of an Indigenous business under the definition used in the Australian Government’s Indigenous Opportunity Policy [6] (the Indigenous Opportunities Policy currently defines an Indigenous business as a business that has an ABN and 51 per cent Indigenous ownership).

 

Agencies may be requested by the Board to report periodically on the accessing of goods and services as permitted by this Direction.

 

This Direction is issued by the NSW Procurement Board takes effect from 1 October 2013 for a period of two years.