The Australian government announced on Tuesday (10 August) that it has awarded contracts that are set to benefit indigenous businesses. The first deal means North Sydney businesses are set to reap the benefits of a $25.8 million head contract to deliver critical infrastructure upgrades at HMAS Waterhen. Barpa Pty Ltd, an Australian Indigenous construction company, has been awarded the contract. The government also announced a $45.8 million head contract to deliver critical upgrades at Puckapunyal Training Area that also was awarded to Barpa.
Minister for Defence Industry Melissa Price said the project was also expected to provide benefits to the NSW economy by maximising the opportunities for Indigenous and local businesses. “The construction workforce will average 20 workers per day, with a predicted peak of around 50 workers per day,” Price said. “Under its Local Industry Capability Plan the project will target local businesses for 85 per cent of all subcontracting work.”
Price said the government had committed to a significant investment at HMAS Waterhen in support of current and new maritime capabilities. “HMAS Waterhen is the Royal Australian Navy’s lead establishment for mine warfare and supports a large workforce of Defence personnel,” Price said. “The project will improve critical base infrastructure and ensure HMAS Waterhen continues to be able to provide support to the mine warfare force. Barpa will remediate and upgrade the engineering services and working accommodation at HMAS Waterhen.”
Barpa was procured under the Commonwealth government’s Indigenous Procurement Policy (IPP) to support development of Indigenous businesses, skills and workforce.
Member for North Sydney Trent Zimmerman welcomed the upgrade works to HMAS Waterhen. “I am delighted that the Morrison Government has invested $25.8 million for upgrades to the HMAS Waterhen, which is symbolic of the rich maritime history of the North Sydney region,” Zimmerman said. “This investment will not only upgrade an iconic Navy site, but will also deliver a significant economic boost to the local businesses of North Sydney.”
Defence continues to exceed Australian Government targets under the Indigenous Procurement Policy. Since the introduction of the IPP in 2015, more than $4 billion of Federal Government contracts have been awarded to Indigenous businesses. Of this, Defence has awarded more $2 billion in contract value to Indigenous-owned businesses.
Defence remains a key contributor against the Commonwealth Indigenous Procurement Policy. In 2020-21, Defence exceeded its number target (676 contracts) by awarding over 3426 contracts to Indigenous businesses at a value of $497 million (against a value target of $110 million). Detailed design work on the project started in July, with construction due to start in late 2021 and finish in mid-2023.
Price said the government had committed to a significant investment at Puckapunyal to support current and future land capabilities. “Puckapunyal Military Area in Victoria is the Australian Army’s centre for combined arms doctrinal development and training, supporting a large number of defence personnel, family members, and foreign visitors. The project will improve critical base infrastructure that supports the operation and sustainment of the Puckapunyal Military Area in support of Army capability. As part of the Puckapunyal Mid-Term Refresh Project, Barpa will remediate and upgrade the current water, stormwater and sewerage systems throughout the base.”
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