Aboriginal businesses in NSW received $480 million of direct government business in the last financial year, an increase of $92 million from 2019-20.

The state government has attributed the almost five-fold growth in the value of contracts to its Aboriginal Procurement Policy which came into effect in January 2021.

Finance minister Damien Tudehope says the policy targeted 200 contracts worth $136.7 million in 2021-22.

“We can report there have been 698 contracts worth $479.6 million,” he said in a statement.

“This shows that a wide-range of government agencies are actively looking for opportunities to source goods and services from Aboriginal businesses across the state.”

Forty per cent of the spend has been in regional NSW.

The biggest government spender in 2021-22 was NSW Health, which awarded 230 contracts worth $281.6 million to Aboriginal businesses, followed by Transport for NSW with 266 contracts worth $65.5 million.

The government has targeted $150.4 million worth of Aboriginal procurement and 213 contracts for 2022-23.

More tender opportunities

One business that says it has benefitted from the policy is Gunnedah-based Many Fabrication and Engineering.

The company is 100 per cent Indigenous-owned and provides services in engineering, fitting and machining.

Lindsay Sheedy from Many Fabrication and Engineering says the procurement policy has dramatically increased tender opportunities.

“The Aboriginal Procurement Policy has given us strong exposure to the top companies that we want to be working with,” Ms Sheedy said.

“Also, knowing that the Aboriginal Procurement Policy avidly supports Aboriginal businesses, we feel confident to invest in ourselves through the expansion of our business into a new location as well as broadening our scope of works.

“This will in turn, lead to an increase in local and regional employment opportunities and add to the continued growth in the Kamilaroi region.”

Connecting with buyers

The policy aims for at least three per cent of domestic contracts for goods and services to go to Aboriginal-owned businesses across construction, facility management, human resources, medical, ICT and professional services.

In a move to drive Indigenous procurement, the government has been holding a series of Meet the Buyer events connecting regional Aboriginal businesses with government agencies, major suppliers and head contractors.

Procurement plays a key role in empowering Aboriginal businesses and communities, Treasurer Matt Kean said.

The NSW Government is committed to driving greater partnership and shared decision-making with Aboriginal communities,” Mr Kean said in a statement.

Consultation on the Aboriginal Procurement Policy is open here until February 28.