Department of Finance

How BMW works with Aboriginal businesses

The state government has introduced the Aboriginal Procurement Policy, which applies from 1 July 2018 to all contracts valued at more than $50,000 for goods, services, community services and works.

All government agencies must procure one percent of these contracts from Aboriginal businesses in 2018-19, increasing to two percent in 2019-20 and three percent in 2020-21. It is important to note that these figures apply only to direct contracting arrangements between a government agency and the primary contractor. Subcontracting arrangements are not included in the targets.

BMW is committed to implementing the policy through its tenders and contracts and to working with government agencies to ensure they meet the target number of contracts to be awarded to registered Aboriginal businesses.

In addition to the direct contracting target, BMW as a business has committed to increasing the participation of Aboriginal businesses and people in the delivery of its contracts. BMW recognises that many Aboriginal businesses offer goods and services that are ideally suited to subcontracting arrangements with lead contractors.

If you are planning on submitting a tender for a BMW-led project, you should be aware of the benefits that may accrue where you:

Are you an Aboriginal business?

To be eligible to be awarded a contract with BMW, you must be registered with either the Aboriginal Business Directory WA or Supply Nation. This registration must be current at the time you submit a response to a Request for Tender or Quotation.

For the purposes of the initiatives below, BMW treats joint ventures with a registered Aboriginal business as though they are an Aboriginal business. Any reference to Aboriginal businesses includes joint venture arrangements.

Are you interested in delivering contracts under $250,000?

BMW delivers much, but not all, of its work valued at below $250,000 through minor works panel arrangements. Where our panels contractually allow for it, we are open to directly appointing interested Aboriginal businesses to the panel that offer value-for-money services.

Outside panel arrangements, it is possible for our staff to directly procure from an Aboriginal business to any value, where it represents value for money and meets operational requirements.

If you are interested in subcontracting to larger firms that contract directly with BMW, you should familiarise yourself with our Aboriginal Business and Employment Tendering Preference. If you are an Aboriginal-owned business, employ Aboriginal people or subcontract to Aboriginal businesses, we may evaluate all or part of your bid as though it has been reduced by 10 percent. Many larger contractors may be unaware of this preference: you may wish to alert them to the potential financial benefit of working with you.

From 1 July 2018, the maximum preference that can be claimed under this preference has increased from $100,000 to $250,000.

BMW’s regional officers will continue to work with local content officers in the Regional Development Commissions to identify and encourage Aboriginal businesses to tender for work with us.

Are you interested in delivering contracts over $250,000?

Generally, for contracts valued at over $250,000, BMW uses openly advertised Requests for Tender.

However, where a value-for-money, justifiable opportunity exists to contract directly with an Aboriginal business or joint venture, then BMW may choose to do that, or to approach only Aboriginal businesses for tenders. Businesses will still need to submit a response to a tender, outlining how they will deliver the contract, and meet any compliance and prequalification requirements.

We have introduced an Aboriginal Business Specific Upgrade Program, which will allow Aboriginal businesses to apply to tender for a specific project one prequalification level above their existing prequalification level. If you are not prequalified, the ‘upgrade’ will allow the entity to apply to tender for level 1 contracts. You will need to apply for the upgrade prior to submitting your tender. Information on this program can be found in BMW’s Builders Prequalification Scheme documentation.

BMW has in place an Aboriginal Business and Employment Tendering Preference. If you are an Aboriginal-owned business, employ Aboriginal people or subcontract to Aboriginal businesses, we may evaluate all or part of your bid as though it has been reduced by 10 percent. From 1 July 2018, the maximum preference that can be claimed under this preference has increased from $100,000 to $250,000.

Tenderers will be asked to substantiate any claims they make regarding working with Aboriginal subcontractors or suppliers.

Are you a consultant?

We have five consultancy panels: architectural services, cost management services, engineering and building specialists, interior fitout and workplace design, and occupational safety and health.

The terms of these panels have been varied to allow offers for membership from Aboriginal businesses, or joint ventures with Aboriginal businesses.

Outside the panels, consultant engagement will occur in the same way as the information on contracts over and under $250,000 outlined above.

Are you working with Aboriginal businesses or employing Aboriginal people?

Aboriginal Business and Employment Tendering Preference

The ABETP applies to:

  • direct employment of Aboriginal people
  • engagement of Aboriginal businesses as subcontractors or suppliers
  • the cost of employment of Aboriginal people by subcontractors or suppliers (whether Aboriginal-owned or not).

Ten percent of each of these costs will be removed from your tender sum to a maximum of $250,000. This reduction in tender sum is for evaluation purposes only. Any contract awarded will be for the full tendered amount.

To be recognised as an Aboriginal business, the supplier must be registered with either the Aboriginal Business Directory WA or Supply Nation.

Please note that if you make an ABETP claim and are subsequently awarded a contract, you will be required to report against fulfilment of those claims.

The ABETP also offers a preference of 10 percent of the full tender sum for tenders from a registered Aboriginal business or registered joint venture with an Aboriginal business.

Value for money

BMW’s primary consideration in tender evaluation and contract award is value-for-money. One component of the value-for-money consideration is the capacity to fulfil government social procurement initiatives. Tenders that demonstrate genuine engagement with Aboriginal businesses and, where appropriate, communities, will be considered in the tender evaluation process.

Western Australian Industry Participation Strategy

From 1 October 2018, under the government’s new Western Australian Industry Participation Strategy, tenderers for BMW works contracts valued at greater than $500,000 in the regions and $3 million in the metro area will be required to submit an industry participation plan. The plan outlines their commitments to employing or involving local businesses in supply opportunities.

Plans which demonstrate engagement with Aboriginal business and development of those businesses’ capability can attract higher scoring during the qualitative evaluation of tenders.

The Western Australian Government is committed to increasing the economic participation of Aboriginal people across the state and BMW is equally committed to supporting this objective through its contracting and tendering practices.

Want to know more?

BMW’s feedback officer can be contacted on (08) 6551 1888 or


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