The WA Government almost doubled its targets for contracts to First Nations businesses in 2022-2023 via its Aboriginal Procurement Policy.
The 356 contracts awarded to 167 Indigenous organisations were worth $254 million - matching the annual high from 2021-22 - an increase from 3.5% to 6.86% of all state government contracts.
Two of the 167 recipients secured almost half of the government's $254m under its Aboriginal Procurement Policy (APP), launched in 2018.
Diversified contractor Garli and mining rehab specialist Buru Rehab were awarded $59.6m and $59.1m respectively for several projects.
Noongar Chamber of Commerce CEO, Tim Milsom, said the intent of the procurement policy was to grow the entire Indigenous business sector.
"That doesn't sound to me like we're encouraging Aboriginal people to get into business," he said.
"It's basically saying, 'we've got two Aboriginal businesses that can actually do what we need them to do, so we'll just give it to them'.
"I'm not a big fan (of how APP funds are allocated) to be honest.
"The idea of the procurement policy was actually designed to encourage Aboriginal people to get into business."
Three WA government agencies awarded 71% of last financial year's contracts: Main Roads (83 contracts worth $86m), Mines, Industry, Regulation, and Safety (eight contracts worth $60m - including the $59m Buru Rehab contract) and Communities (62 contracts worth $34m).
The government said 2022-23's WA procurement expenditure review showed the policy was succeeding, with contracts for First Nations businesses increasing from 179 to 356 since 2018-2019, with more than $1 billion awarded since the APP's inception.
The current policy dictates contracts with Indigenous businesses must be worth $50,000 or more, a value Infrastructure WA suggested earlier this year should be raised.
In response the government said any increase could lead to bigger Aboriginal organisations receiving fewer contracts, while smaller ones would be disadvantaged.
"There is a larger potential benefit if the targets are based on the number of contracts, as opposed to a monetary value," the government said in February.
WA Finance minister Sue Ellery said the APP had provided significant outcomes for Aboriginal businesses.
"A fantastic example of this is Nirrumbuk Aboriginal Corporation, which has increased employee numbers from 80 to 215 and expanded its services to support Aboriginal economic growth in the Kimberley as a result of working with the state government," she said.
Aboriginal Affairs minister Tony Buti said his government remained committed to growing opportunities for the Indigenous business sector.
"The Cook government is strengthening relationships with Aboriginal businesses and is focused on growing the economic prosperity of all Western Australian communities," he said.
The 2022-23 Aboriginal Procurement Policy performance report and summary of its first four years' outcomes is available here.
