Aboriginal Participation Strategy

Reflecting our commitment to the NSW Government Plan for Aboriginal Affairs, OCHRE.

Acknowledgment of Country

The Department of Finance, Services and Innovation (DFSI) acknowledge the Australian Aboriginal and Torres Strait Islander peoples of this nation. We acknowledge the traditional custodians of the lands and waters. We pay our respects to ancestors and Elders, past and present. DFSI is committed to honouring Australian Aboriginal and Torres Strait Islander peoples’ unique cultural and spiritual relationships to the land, waters and seas and their rich contribution to society.

1. Our public commitment to grow the First Economy of NSW

This DFSI Aboriginal Participation Strategy reflects our commitment to the NSW Government Plan for Aboriginal Affairs, OCHRE, and is a key deliverable under the Aboriginal Procurement Policy.

OCHRE aims to support strong Aboriginal communities in which Aboriginal people actively influence and fully participate in economic, social and cultural life. It recognises that the NSW Government and the business community have a key role to play in broadening opportunities for Aboriginal people to deliver positive socio-economic outcomes.

The Department’s commitment to increasing Aboriginal participation is described throughout this strategy, with targets to increase participation through engagement with Aboriginal owned businesses, industry and our government partners.

1.1 Our strategy

The DFSI Aboriginal Participation Strategy is our commitment to support the growth of the First Economy of NSW and describes how we will work meaningfully in partnership with businesses to achieve positive outcomes through Aboriginal owned business and employment opportunities.

1.2 Objectives

The key objectives of our strategy include:

  • support employment opportunities for Aboriginal people within Aboriginal owned businesses.
  • support employment opportunities for Aboriginal people within non-Aboriginal owned businesses.
  • support sustainable growth of Aboriginal owned businesses through government procurement of goods and services.

2. Working with suppliers to Government and with Aboriginal owned businesses to identify and develop business and employment opportunities

2.1 Whole of government policy development and implementation

NSW Procurement is responsible for NSW Government procurement policy development and implementation on behalf of the NSW Procurement Board. This includes supporting government agencies to identify and develop business and employment opportunities for Aboriginal employees and Aboriginal owned businesses across NSW Government procurement opportunities.

2.2 Aboriginal participation in procurement

On 1 July 2018, NSW Procurement released the revised Aboriginal Participation in Construction (APIC) policy and newly developed Aboriginal Procurement Policy (APP). The policies support the NSW Government Plan for Aboriginal Affairs, OCHRE, and is a key deliverable under the Aboriginal Economic Development Framework.

The objectives of these policies is to create opportunities for Aboriginal owned businesses and encourage Aboriginal employment and training through direct engagement with NSW Government agencies or through the supply chain.

2.3 Targets and requirements

The APP and APIC policies aim to support an estimated 3,000 full time equivalent employment opportunities for Aboriginal people through NSW Government procurement activities by 2021.

To support increased business opportunities and growth for Aboriginal owned businesses, the APP aims for 3 per cent of NSW Government domestic goods and services contracts be awarded to Aboriginal owned businesses by 2021.

The APIC policy requires that 1.5 per cent of eligible project spend on projects valued over $1 million is directed toward Aboriginal participation.

Aboriginal participation must be directed towards Aboriginal employment, engagement of Aboriginal owned businesses, education and training, and engagement or consultation with Aboriginal organisations or businesses

Both policies include new purchasing permissions for government agencies. These aim to reduce red tape for Aboriginal owned businesses and agencies by permitting direct engagement of Aboriginal owned businesses for procurements valued up to $250,000.

The policies have mandatory reporting requirements to assist agencies and government in tracking compliance and the progress towards the contract and employment targets. NSW Procurement has developed the Aboriginal Participation Portal to streamline reporting and data collection for suppliers.

2.4 Whole of government and industry implementation targets

2.4.1 NSW Procurement

To support effective implementation of the policies and their objectives, NSW Procurement will:

  • Continue the implementation and improvement of the Aboriginal Participation Portal allowing suppliers to report on their progress towards their Aboriginal participation commitments.
  • Support Aboriginal owned businesses to benefit from the policies including by offering individual consultation, tools and support on how to access government procurement.
  • Support NSW Government agencies in their implementation of the policies through consultation, tools and templates.
  • Conduct an annual review of the policies through data collection and government and industry consultation.
  • Change prequalification scheme registration, enabling agencies to identify Aboriginal owned businesses that are registered with Supply Nation and NSW Indigenous Chamber of Commerce, allowing Government agencies to procure through these businesses more easily and in line with policy permissions;
  • Partner with Supply Nation and the NSW Indigenous Chamber of Commerce to support Aboriginal owned businesses to access government opportunities.
  • Host a series of events with suppliers, Aboriginal owned businesses and agencies to share information about the policies and how to access government procurement.

2.4.2 NSW Procurement – Contingent Workforce Category Management

On 23 August 2017, NSW Procurement Contingent Workforce Category Management specialists hosted an Indigenous Supplier forum, attended by Indigenous businesses, Supply Nation, Senior NSW Procurement Executives, NSW Department of Education Chief Procurement Officer and the Contingent Workforce Category Management Working Group.

The forum supported the Government’s commitment to achieve greater engagement with the Aboriginal business sector and increase the participation of indigenous workers across the sector.

The NSW Government’s Contingent Workforce strategy is underpinned by the Contingent Workforce prequalification scheme, setting minimum criteria for all supplier applications. Detailed guidance around the requirements of the scheme and the application process were provided to those that attended.

2.4.3 NSW Procurement –Fleet Management Panel

The NSW government Fleet Management Panel covers a broad range of fleet management services across government, such as leasing for passenger and light commercial vehicles, log book collection, e-tag management, mini-leases, roadside assistance, accident and repairs management and fuel cards. The contracts related to these services are all valid to 2020 with potential extension options. Upcoming go-to-market activities will include provisions for Aboriginal participation.

2.4.4 NSW Procurement – Professional Services Category Management

The Performance and Management Services Prequalification Scheme (PMS Scheme) has over 2,000 prequalified suppliers of professional, business advisory and consultancy services, including Aboriginal owned businesses.

Some larger suppliers on the PMS Scheme have made public commitments to support Aboriginal owned businesses and published reconciliation plans, which support the NSW Government’s objectives to increase the number of employment opportunities for Aboriginal people and engagement with Aboriginal owned businesses.

Some large suppliers have Indigenous owned subsidiaries, which could increase the opportunity for NSW Government to engage with Aboriginal owned businesses.

2.4.5 ICT (Buy.NSW)

ICT, through Buy.NSW, is developing capacity to host meaningful supplier profiles that will assist sellers in advertising their business and capability. Currently, suppliers may self-identify as an Aboriginal owned business, information which is verified against relevant databases. Buy.NSW will be working specifically in the next year to support the needs of SME and Aboriginal owned businesses.

2.4.6 DFSI Corporate Procurement

For all planned procurements (above and below $10m), DFSI will target procuring supply from Aboriginal owned businesses with 5 per cent of combined annual spend to reside with Aboriginal suppliers. Some procurement categories will be targeted for increased participation of Aboriginal suppliers by adding a recommendation in the DFSI Procurement Guide to invite at least one Aboriginal supplier located on the NSW Indigenous Chamber of Commerce or Supply Nation business directories for tenders relating to catering, office supplies, marketing and advertising services and uniforms.

2.4.7 Service NSW

Service NSW is working with Aboriginal owned businesses to increase employment opportunities for Aboriginal employees.

A three-year partnership has recently been entered into with Yarn’n Employment Services to attract candidates across all levels of Service NSW, including leadership positions. This partnership, together with a two year partnership developed with Maxima that will supply up to 40 entry-level Aboriginal trainees across NSW over two years.

These initiatives further support the Premier’s Priority: Creating Jobs and the State Priority: Strong budget and economy, which aims to increase the proportion of people completing apprenticeships and traineeships by 65 per cent. Service NSW has a three per cent targeted increase of Aboriginal staff.

2.4.8 Property NSW

Property NSW manages the Whole of Government Facilities Management contract, delivering cleaning to approximately 4,300 government buildings and maintenance services to approximately 3,000 sites across NSW. These sites include NSW schools, TAFE colleges, courthouses, government offices and essential services buildings such as ambulance, police and fire stations.

Property NSW also manage the Whole of Government Integrated Security contract. As this contract commenced in July 2016 for 3 years, plus 2 x year options, there was no mandatory Aboriginal Participation component to the contract. As the contract is projected to approach an annual turnover of $50 million in 2019, this represents an ideal opportunity for future participation requirements upon contract renewal.

Creating jobs, community participation and driving diversity are key NSW Government priorities, and as a result, the NSW Government wants to support businesses that support social procurement delivery.

2.4.9 NSW Telco Authority

The NSW Telco Authority (Authority) is delivering the Critical Communications Enhancement Program to bring greater access to public safety standard telecommunications to NSW’s public safety agencies. Supplier partners that work together with the Authority have made commitments to increase the engagement of Indigenous professionals in the telecommunications industry. Moreover, Aboriginal consultants are engaged as part of the planning, design and construction phases to ensure local Aboriginal cultural heritage is maintained.

The Authority also manages the Whole of Government Operational Telecommunications Equipment, Infrastructure and Services procurement scheme. Suppliers in the scheme include telecommunications equipment, electrical, engineering, construction and maintenance service providers. The Authority is exploring opportunities to engage local Aboriginal owned businesses to supply these services at telecommunications facilities.

3. Aboriginal participation targets

NSW Procurement – Policy development and implementation

Target

Progress

Strategy for future improvement

Release of APP and revised APIC policy in July 2018.

NSW Procurement released the new APP and the revised APIC policy on behalf of NSW Procurement Board with an effective date of 1 July 2018.

Ongoing industry and government consultation to assess effectiveness of the polices, including starting the annual review in early 2019

Conduct the annual review of the APP and APIC policy (2018/2019 Financial year). Commence early 2019, targeted completion date of October 2019 (to allow for financial year data collection).

The review commenced in February 2019. Six review workshops have been held in February 2019 and April 2019. Public consultation via ‘Have Your Say’ planned for June 2019.

The review report will assess policy effectiveness understanding and compliance. Findings and recommendations will be presented to the NSW Procurement Board.

Improve policy awareness and effective implementation through closer engagement and collaboration with industry and agencies

NSW Procurement has offered one-on-one, or larger, business and agency consultations to support industry and government policy awareness and effective implementation.

A series of events have been hosted by NSW Procurement including two events held in Redfern, NSW.

NSW Procurement has also attended events held by other NSW Government agencies held in metropolitan Sydney and in regional NSW to support implementation of the policy.

NSW Procurement will continue to offer consultation and support for Aboriginal owned businesses, non-Aboriginal organisations and NSW Government agencies.

Implement and refine the Aboriginal Participation Reporting Portal

The online portal allows suppliers to report against their progress toward APP and APIC policy requirements and commitments.

The portal will be further refined to continue to improve user experience and minimise the administrative burden on agencies and suppliers.

Identification of Aboriginal owned businesses on prequalification schemes

DFSI have included an option for Aboriginal owned businesses to identify as Aboriginal owned during prequalification application. This will enable agencies to readily identify Aboriginal owned businesses, increasing the potential for participation and use of the new purchasing permissions.

  • Increase the number of Aboriginal owned businesses registering and identifying as   Aboriginal owned on prequalification schemes.
  • The policy  information sessions held in February 2019 saw 18 additional Aboriginal owned   businesses added to pre-qualification schemes, with a further nine businesses   currently going through the application process.

NSW Procurement – Whole of Government Fleet Category Management

Target

Progress

Strategy for future improvement

Encourage suppliers of the existing NSW Government Fleet Management Contract to engage Aboriginal owned businesses and encourage increased Aboriginal employment

The current three-year contract is due to expire in March 2019, with negotiations underway to finalise variations for a one-year extension to March 2020. The current contract has no Aboriginal participation requirements; however, work is being undertaken to encourage increased participation through the one year extension component.

Review Aboriginal participation requirements and appropriate measures that may be included in future contracts.

NSW Procurement – Professional Services

TargetProgress

Strategy for future improvement

Leverage support for Aboriginal participation through relationships with large consulting firms.

Some large suppliers on the NSW Government Performance and Management Services Scheme have stated their support for Aboriginal employment and Aboriginal owned businesses.

Seek tangible plans from large suppliers which demonstrate a tangible commitment to increase engagement with Aboriginal owned businesses and employment opportunities for Aboriginal people.

Publicly acknowledge successful engagements with Aboriginal owned businesses to increase visibility and uptake.

Currently, Aboriginal owned businesses are indicated as such on the scheme, however further promotion may assist in increasing visibility.

Publish case studies of successful engagements with Aboriginal owned businesses to encourage further engagement with the sector.

Service NSW

TargetProgress

Strategy for future improvement

Partnering with employment and training providers to increase jobs for Aboriginal people

Service NSW has developed partnerships with Aboriginal employment and training providers to increase the number of Aboriginal staff across all levels of the organisation, including leadership positions. Service NSW has also committed to increasing the number of Aboriginal trainee positions across NSW.

Service NSW will be working consistently toward the achievement of these goals over the  coming three years.

Property NSW

TargetProgress

Strategy for future improvement

Up to 10% of the Whole of Government Maintenance Contract value of $541.1 million will be invested in social procurement over the initial 4.5 year term (see Appendix 1).

Property NSW has set mandatory minimum participation targets, increasing progressively throughout the life of the contract. Successful providers have committed to stretch targets with inclusion percentages considerably higher than the mandatory minimum set by Property NSW.

  • Consistent, accurate monthly reporting by contractors into the Aboriginal Participation  Portal;
  • Maintenance and  cleaning contracts results and planned progress reported monthly to Property NSW at contract review meetings;
  • Suppliers to complete an annual audit of Aboriginal Participation Plan.

Increase Aboriginal Participation on the Whole-of-Government Security Contract.

The current contract commenced in July 2016 for 3 years plus 2x1 year options. The annual turnover in FY 19 is projected to approach $50 mil. As the contract was released ahead of policy implementation, there is currently no Aboriginal participation component.

  • Develop a  sub-category on the panel for procurement of Aboriginal security providers and employees up to $250K.
  • Allow agencies to use the framework and protections of the contract to procure these services removing barriers to engaging these Aboriginal providers
  • Customise the procurement approach, seeking expert advice to support Aboriginal businesses   through the procurement process.

4. Procurement opportunities over $10 million

Contract

Contract Value

Contract start date

Contract end date

Contract extension

Provision of fleet management services

$20.8m

1/7/2016

3/3/2019

3/3/2020

Provision of leasing of vehicles

$604m

1/7/2016

3/3/2019

3/3/2020

Integrated Security Services Contract

$50m

1/7/2016

3/3/2019

3/3/2020

Appendix 1

The Whole of Government Maintenance Contract commenced in July 2018. Up to ten percent of the contract value of $541.1m of the initial 4.5 year term will be invested in social procurement. The Whole of Government cleaning contracts were awarded in November 2018 and will commence in March 2019. Up to six percent of the $7.747bn contract will be invested in social procurement throughout 4 year, 10 month term. The successful providers have committed to the below targets and stretch targets for participation.

Contract year

Mandatory Minimum
Aboriginal Participation Target

Metro Sydney
Aboriginal Participation Stretch Targets
(% contract value)

Regional NSW
Aboriginal Participation Stretch Targets
(% contract value)

 

Sydney CBD

Sydney

North Sydney

South Western Sydney

Western Sydney

North Coast

Hunter / Central Coast

Southern NSW

North Western NSW

C

M

C

M

C

M

C

M

C

M

C

M

C

M

C

M

C

M

Contract Year 1

1.5%

2.0

 

1.6

2.5

3.0

12.0

1.6

12.0

4.9

2.5

1.6

3.0

4.9

2.5

2.0

2.5

2.0

2.0

Contract Year 2

2.5%

3.0

 

2.6

3.5

4.0

16.3

2.6

16.3

5.4

3.5

2.6

3.5

5.4

3.5

3.0

3.5

3.0

3.0

Contract Year 3

3.5%

4.0

 

3.6

3.6

5.0

21.7

3.6

21.7

5.9

3.6

3.6

4.0

5.9

3.6

4.0

3.6

4.0

4.0

Contract Year 4

4.0%

5.0

 

4.1

4.1

6.0

25.5

4.1

25.5

6.4

4.1

4.1

4.5

6.4

4.1

4.5

4.1

4.5

4.5

Contract Year 5

4.0%

5.5

 

4.1

4.1

6.0

28.0

4.1

28.0

6.6

4.1

4.1

5.0

6.6

4.1

4.5

4.1

4.5

4.5

Option 1

4.0%

6.0

 

4.1

4.1

6.0

30.0

4.1

30.0

6.6

4.1

4.1

5.5

6.6

4.1

4.5

4.1

4.5

4.5

Option 2

4.0%

   

4.1

 

32.0

 

32.0

 

4.1

 

6.0

 

4.1

 

4.1

 

4.5

Contractor

Pickwick

 

ISS

Spotless

Facilities First

Facilities First

ISS

Facilities First

Broadspectrum

Spotless

ISS

O'Donnell Hanlon

Broadspectrum

Spotless

Joss

Spotless

Joss

Joss

Note:

  • C=cleaning, M=maintenance
  • Contract year 1 is 10 months for cleaning
  • Contract year 5 is 6 months for maintenance
  • Maintenance contract year 1 commences on 1 July 2018
  • Cleaning Contract year 1 commences on 1 March 2019
  • Extension Option 2 only applies for maintenance

Contractors will:

  • Report Aboriginal Participation Plan results monthly though a new NSW Government portal
  • Also report their Maintenance contract results and plan progress monthly to Property NSW at contract review meetings
  • Also report their Cleaning contract results and plan progress quarterly to Property NSW at contract review meetings
  • Complete an annual audit of their Aboriginal Participation Plan
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