• How do I buy from an Aboriginal business?

    Firstly, investigate if there are opportunities for Aboriginal business to supply goods and services to your agency. Don’t be afraid to think outside the square and investigate whether an Aboriginal business can meet your requirements. Check the Aboriginal Business Directory WA (ABDWA) or ask the local community to see if an Aboriginal business meets your needs. Where there is an Aboriginal business within the community that is not registered with the ABDWA website and you would like to contract with them please ensure they register as they must be a registered Aboriginal business to comply with the amended policy. 

    If you have a need for something that’s not already offered, please approach GP’s Social Procurement Initiatives team.

    The flowchart below shows the steps to take when buying from a registered Aboriginal business for contracts valued less than $250,000.

    Flowchart - How to buy from a Aboriginal business

    Please note for contracts in excess of $250,000 a public authority's Accountable Authority may approve undertaking a procurement in excess of $250,000 directly from a registered Aboriginal business, if it considers that circumstances exist to support the procurement being undertaken. (It is recommended to follow the flow chart above similar to requirements valued over $50k , however the  Request for Tender template may be more appropriate for higher valued contracts and the justification and approval needs to be established by your accountable authority as the initial step).

    The flowchart explained

    Identify your requirement

    Identify your goods and services requirements early and clearly specify what you need.

    ABDWA

    This website provides high level information on Aboriginal businesses capabilities and their contact details so you can discuss your requirements.

    Value for Money Research

    Benchmarking and market research can all assist in the costing element of your value for money research, however value for money considers non cost factors such as social benefit and economic participation. Purchasing from a registered Aboriginal business aligns with those non cost factors. 

    Form a contract

    You will need to form a contract with the registered Aboriginal business. Before you do so, make sure it has the capacity and capability to meet your needs.

    If the estimated cost of your purchase is up to and including $50,000, you can source directly from a registered Aboriginal business, as long as you follow your agency’s internal procurement processes.
     
    If the estimated cost is over $50,000, internally document and justify the use of the exemption from the minimum requirements of the Open and Effective Competition policy before forming a contract.

    Where the estimated cost exceeds $50,000 you are required to form a written contract.The Department of Finance has templates to assist in contract formation, which vary depending on contract value.

    The following templates are available;

    • Verbal Quotation or Request for Quote (less than $50,000)
    • Request for Quote (more than $50,000 and less than $250,000)
    • Request for Tender (more than $250,000)
    • Awards letters

    These templates can be found on the Procurement Guidelines and Templates web page.

    In the process, make sure to check your agency’s internal procurement guidelines.

    Once you receive the offer, evaluate it. Take into account value for money of cost and non-cost factors, including social outcomes.  

    Complete an evaluation report and recommendation, and have it approved by the Accountable Authority within your agency.

    You are now ready to award the contract to the registered Aboriginal business.

    It is the responsibility of the Accountable Authority to develop and manage the contract. GP's Agency Procurement Support team can help if you have any specific queries.

    Exemptions from the Open and Effective Competition Policy

    Please note, to further streamline the process, it is no longer required to request advice or approval from the Department of Finance, regardless of value, when seeking an exemption from the minimum requirements of the Open and Effective Competition Policy and the use of mandatory Common Use Arrangements.

    To exercise the exemption from the minimum requirements of the Open and Effective Competition policy:

    1. Internally document and justify the use of a registered Aboriginal business
    2. Obtain approval from the Accountable Authority within your agency, if required.
    3. Once granted, record and document justification on file.

    For more information contact Government Procurement’s Social Procurement team on (08) 6551 2475 or spi@finance.wa.gov.au.