The updated policy comes into effect on 1 July 2018
The NSW Government has updated its Aboriginal Participation in Construction (APIC) policy, which creates opportunities for Aboriginal owned businesses and encourages Aboriginal employment and training through the supply chain of NSW Government construction contracts. The updated policy comes into effect on 1 July 2018. Together with the Aboriginal Procurement Policy, the APIC policy aims to support 3,000 Aboriginal employment opportunities by 2021.
The APIC policy requires a minimum of 1.5 per cent of the project spend on relevant NSW Government construction contracts to be dedicated to Aboriginal participation. This spend must be fully distributed to Aboriginal employment, engagement of Aboriginal owned businesses, approved formal training or consultation with Aboriginal organisations.
In addition, the 2018 APIC policy encourages agencies to:
- directly negotiate with suitably qualified Aboriginal owned businesses that can demonstrate value for money and delivery of quality construction goods and services for procurements valued up to $250,000
- run a closed tender with prequalified Aboriginal owned businesses that can demonstrate value for money and delivery of quality construction goods and services for procurements valued up to $1 million.
To enhance accountability and the NSW Government’s ability to measure the policy effectiveness, the 2018 APIC policy increases the supplier reporting frequency to:
- monthly on projects valued over $10 million
- quarterly for projects relevant to the policy and valued under $10 million.
Reporting for new contracts under the 2018 APIC policy will take place electronically through a new Aboriginal Participation Portal. It is encouraged that existing contracts under the 2016 APIC policy adopt these new reporting requirements and reporting portal where appropriate and if agreed between the contracting agency and the supplier.