Purchase from an Aboriginal Business or Australian Disability Enterprise Guideline

In recognition of the potential for government procurement to help grow Aboriginal economic participation through the support of sustainable businesses and creating jobs for Aboriginal people, the Western Australian Procurement Rules allow agencies to engage a registered Aboriginal business directly, without undertaking a competitive process.

The Aboriginal Procurement Policy sets targets for the percentage of government contracts awarded to registered Aboriginal businesses. For a contract to count towards meeting these targets, and for a State agency to procure directly from an Aboriginal business, the business must be registered on the Aboriginal Business Directory WA or Supply Nation’s Indigenous Business Direct. State agencies may also engage with a registered Aboriginal business directly, without undertaking a competitive process.

These web-based directories aim to make it easier for people to connect with registered Aboriginal businesses.
More information on how agencies can meet the targets under the Aboriginal Procurement Policy Business targets can be found in the Aboriginal Procurement Policy - Practice Guide.

People with disabilities experience a range of restrictions in daily living and when participating in family, community, recreational and work activities that significantly impact on their quality of life. For these people, having a job provides more than a wage – it is a doorway to engagement in community life, enhanced feelings of self-worth and the promotion of citizenship.

In recognition of these benefits and the potential for government procurement to improve the employment prospects of people with disabilities, State agencies may engage with Australian Disability Enterprises (ADEs) directly, without undertaking a competitive process. Agencies may only directly engage with ADEs listed on the Buy Ability website.

ADEs are commercial businesses that provide employment opportunities for people with moderate to severe disability. They receive funding and support from the federal government in recognition of their additional operating costs and provide services across a wide range of categories, including packaging, recycling, gardening and cleaning.

All ADE services are required to meet National Disability Services Standards and are independently audited and certified.

In order to directly engage an Aboriginal business or ADE and comply with the Western Australian Procurement Rules, an agency buyer must:

1. Internally document and justify the use of a registered Aboriginal business or ADE;
2. Obtain approval from the Accountable Authority or delegate within your agency to award a contract;
3. Use a purchase order form to complete your purchase (you may also need to follow any internal agency procedures).

There is no requirement to request advice or approval from Finance, regardless of value, when directly engaging Aboriginal businesses or ADEs. Agencies can even choose to directly engage an Aboriginal business or ADE instead of using a mandatory Common Use Arrangement – no approval from Finance is required in this instance either.

Procurement Planning

When purchasing from an Aboriginal business or ADE, agencies must still ensure that the purchase represents value for money.

A State agency must ensure that there is a bona fide need for the good and/or service provided by an Aboriginal business or ADE and that the good and/or service can be provided at a reasonable price and to the required quality, at an acceptable level of risk to the State agency.

Where a good and/or service is required to replace an expiring contract with a company that is not an Aboriginal business or ADE, then the prices paid for the goods and/or services under the expiring contract may be benchmarked against the price offered by the Aboriginal business or ADE, and taken into consideration with the social benefits derived from engaging the business.

Where a good and/or service is required and there is not an expiring contract in place, State agencies must undertake sufficient market research to ensure that the Aboriginal Business or ADE is able to meet their needs and provide the good and/or services at a reasonable price.

In summary, to assess the Aboriginal Business or ADE‘s suitability a State agency must determine whether the provider:

• meets the needs of the State agency;
• will provide the good and/or service to an acceptable standard;
• exists to provide the services of persons with a disability; or
• is registered as an Aboriginal Business or ADE; and
• represents value for money.