Indigenous contractor prequalification support

Indigenous contractor

prequalification

Acknowledgement of Traditional

Owners

i. Introduction

In this presentation we will:

 Outline IBA’s work aimed at

helping Indigenous businesses prequalify in the mining

industry.

 Introduce you to the IBA

Prequalification Toolkit.

 Tell you about the trial of the IBA Prequalification Support

ii. Introductions

 David Brudenall - Senior Manager, Strategic

Engagement and Research at Indigenous Business Australia

iii. What is Prequalification?

 Prequalification is the checks that a major company does to

find out if a contractor works to the same safety, environmental and management standards as the company itself.

One bad contractor on a mine-site can undo years of work to build the reputation and standards of a mining business. This is why mining companies look long and hard at the contractors that work for them before they are even allowed to bid for a contract.

1.1a Indigenous Business Australia - Profile

People

Financials

 Net assets approximately $1bn

 $203m portfolio of 26 active investments  $56m portfolio of 289 business loans

 $722m portfolio of 3,841 home loans

 Since 1975, 15,000 home loans generated $1.6bn Indigenous

1.1c IBA projects

North West of the Brisbane Line

20% of employment

53% of investment projects

South East of the Brisbane Line

80% of employment

47% of investment projects

1.2 The Scoping Study

 IBA asked KBC to do a Scoping Study which looked at: a) Indigenous contractors in mining, oil and gas

b) The Prequalification requirements in 6 major companies c) Barriers to prequalification

d) Existing support for

Indigenous businesses trying to prequalify

e) Recommendations to help

Indigenous businesses prequalify

1.3 Findings – Indigenous participation

 Indigenous contractor participation in the resources industry

not tracked by government.

 Generally thought to be low e.g. Indigenous contractor spend

1.4 Findings – Prequalification requirements

 Requirements are similar, but change from company to company.  Businesses must show management systems to deal with risks

across:

 Organisational capacity

 Health, Safety and Environment  Financial capacity

 Human resource management  Quality Assurance

1.5 Existing Support

 A mixed bag of company

and government support.

 Government support focussed

on general business development, not on prequalification.

 Company support focussed

on prequalification, but not enough to overcome barriers.

1.6 The Barriers – Indigenous businesses

 “Just the sheer volume of material that had

to be written from scratch”.

 “Its not just having the systems, you actually

have to use them”.

 “Prejudice is a factor”.

 “When the consultant showed me all the templates I had to go outside and drink

three Wild Turkeys – I never finished year 9!”.

 “I had no idea what they were talking about – too many words I never heard

1.7 The Barriers – Company perspective

 “Most Indigenous businesses lack the capacity to develop

procedures and systems to meet our standards”.

 “Most Indigenous businesses are not big enough to service our

contracts or develop these systems”.

 “Internal reluctance to go with an Indigenous contractor

because of concerns about experience and capacity risks”.

 “Fragmented support for Indigenous business”.  “Not a priority for our business”.

1.8 Study recommendations

 Develop a Toolkit - specific to the resources industry - to

reduce the writing load for Indigenous businesses.

 Offer long-term one-one-one mentoring to help businesses

develop their systems and put them into action.

 Don’t underestimate how

2.1 The Toolkit - What is it?

 The IBA Prequalification Toolkit is a large book (253 pages)  The Toolkit has an introduction to contractor prequalification

written in plain English

 The Toolkit has many examples, templates and guides to help

2.2 The Toolkit - What is it?

i. Introduction

a) Why is it so hard to get and keep contracts with Resource Companies? b) What is a Safety Culture?

c) What is Prequalification?

d) Does my business have to prequalify?

e) Is my business ready to work in the Resource sector? f) What are Management Systems?

g) How do Management Systems work? h) What do I have to do to prequalify? i) How do I use this Toolkit?

j) Getting Help k) A final word

ii. About this toolkit

Background Disclaimer Duty of Care

1. Organisational Structure and Capacity

1.1 Company Ownership

1.2 Organisational or management structure 1.3 Indigenous ownership and participation

1.4 Business skills and capability, financial capacity and staff qualifications

2. Health, Safety and Environment (HSE)

2.1 HSE Policy

2.2 Risk Identification and management 2.3 Safe work procedures and standards 2.4 Incident management

2.5 HSE Training and safety awareness 2.6 HSE Control, Reporting and Auditing 2.7 HSE Accountability

2.8 HSE document control

3. Quality Assurance

3.1 Evidence of a Quality Management System 3.2 Quality Assurance Officer

3.3 Evidence of assessment against quality standards

4. Human Resource (HR) Management

4.1 Employee records

4.2 Evidence of strong recruitment and retention proce 4.3 Indigenous Employment Strategy

2.3 How can I use it?

 Read the introduction to get an understanding of contractor

prequalification

 Look through the examples to get an idea of how management

systems work

 Copy and paste examples and templates and change them to

suit the your business

 Warning!…adapting a template to your business can still take

2.4 Where can I get it?



The Toolkit is available on the IBA website

www.iba.gov.au

3.1 Why a trial?

The Toolkit is some help, but will not be enough – extra one-on-one support is needed.

 IBA wanted to run a trial to find out:

a) If there is interest in prequalification and prequalification support;

b) How we could provide this support; c) How much support is needed; and d) The best way to help Indigenous

businesses succeed.

3.2 Introductory workshops

 Workshops in Perth, Adelaide, Kalgoorlie and Port Hedland for Indigenous businesses

 Attended by 47 business owners and 16 other

stakeholders (mostly resource company reps)

 Delivered by Matt Wrigley and Sandy McEwan

 Last workshop in Perth on the 5th _{of September.}  Positive response. 0 1 2 3 4 5

Presenters Materials Usefulness Met Expectations

Combined workshop feedback - average participant ratings (33 respondents)

3.3 Workshop Aims

The workshop aims to:

 Introduce people to contractor

prequalification

 Help businesses decide if they will try

to prequalify

 Outline the support available from IBA  Help businesses decide if they want to

3.7 Mentoring

 Places for up to 24 businesses and 30 hours of one-on-one mentoring each.

 17 businesses have applied for one-on-one mentoring after the workshops.

 Mentors are now working with these businesses to:

 Look at their risks;

 Find the gaps in their management systems;

 Help them design and write systems to fill gaps; and  Help them put in place the system they have designed.

4.1 Lessons so far

1. Engagement with resource companies and other stakeholders has

maintained strong support for the project.

2. Strong demand for workshops (Perth workshop oversubscribed).

3. More businesses came to the workshops than signed on to the mentoring.

We count this as a win – these businesses know the effort to prequalify and have decided to wait until they are ready.

4. Many businesses do not understand the concept of management systems –

mentors to start with the basics.

5. Plain English explanations very important

6. Prequalification needed beyond mining e.g. large government

4.2 Next Steps

 IBA and KBC aim to complete mentoring by end of 2013.

 Review the lessons learned from the trial through submission of

an evaluation report.

 IBA will then consider whether to expand prequalification

4.3 Prequalification support program contacts



Jonathan Price

 Email – [email protected]  Mobile - 0423765437

4.4 Questions

4.5 Thankyou