Embedding Social, ESG and Aboriginal Outcomes in WA Local Government Procurement

The next evolution of local government procurement in Western Australia is no longer about what is legally compliant, it is about what delivers measurable community value. State and Federal policy now expect councils to actively leverage procurement to drive Aboriginal economic participation, local job creation, sustainability, circular economy outcomes and social benefit, not simply “buy efficiently”.

However, many councils hesitate,  not due to lack of will, but because of misconceptions that embedding social or ESG objectives risks breaching probity or driving up cost. In reality, when done correctly, strategic procurement not only complies with the relevant legislation, but unlocks superior value-for-money and positions council as a proactive leader, not a passive purchaser. This approach shifts procurement from a transactional process into a tool for transformative community impact.

The Shift: From Compliance to Outcome Design

Traditional procurement question:
“How do we buy this at the lowest compliant price?”

Strategic procurement question:
“How do we use this procurement to achieve measurable community, economic or sustainability outcomes, and prove it?”

This reframing is essential. Councils are no longer judged only on whether they meet legislative requirements; they are increasingly measured by the tangible outcomes delivered to the community, the environment, and the local economy.

Aboriginal Procurement Policy (APP)

The Aboriginal Procurement Policy (APP) is a key mechanism for councils to achieve Aboriginal economic participation in Western Australia. It sets requirements for government contracts to increase engagement with registered Aboriginal businesses and support Aboriginal employment and capacity-building opportunities. Councils implement this through Aboriginal Participation Plans, which detail subcontracting, mentoring, and employment targets. Incorporating APP requirements into procurement ensures measurable social and economic outcomes while remaining fully compliant with State policy.

How Councils Can Embed Outcomes Legally and Safely

1. Explicitly build outcomes into procurement policy:

Outcomes should be embedded at the policy level, rather than improvised on a case-by-case basis. This ensures consistency, transparency, and defensibility across all council procurements. Policy can define clear objectives such as Aboriginal participation targets, local employment goals, or sustainability benchmarks.

2. Write outcome criteria as measurable:

Use specific, quantifiable targets, e.g. “10% of contract value to registered Aboriginal businesses” or “at least two new apprenticeships created.” This turns aspirational statements into actionable requirements that can be monitored, reported, and audited.

3. Use weighted evaluation:

To drive meaningful impact, outcome criteria must carry measurable weight in the evaluation process. Treat social, Aboriginal, and ESG outcomes as integral to the tender scoring, not optional or symbolic.

4. Contract for performance:

Embedding outcomes in policy and evaluation is only the first step; contracts must include clear KPIs and reporting obligations. For example, contractors may be required to submit quarterly Aboriginal participation plans, employment reports, or environmental performance metrics. Linking performance to contract payments or incentives ensures accountability.

5. Train elected members and officers:

Councillors and procurement officers must understand how to implement outcome-based procurement without breaching probity or compliance rules. Training programs can build confidence in evaluating bids against social and ESG criteria, interpreting APP requirements, and monitoring contractor delivery effectively.

Why This Matters to Council Leadership

Embedding social, ESG and Aboriginal outcomes is not a risk, it is a strategic obligation and reputational opportunity.

Done correctly, it strengthens probity, community credibility, value for money (as whole-of-community return) and alignment with State policy.

Leading Western Australian councils are quietly and quickly moving toward this model, demonstrating that outcome-driven procurement can coexist with rigorous compliance, efficient processes, and tangible community benefits. In this evolving landscape, councils that embrace strategic procurement are not only fulfilling legal and policy obligations, but they are also shaping resilient, inclusive, and sustainable communities for the future.

How Muscat Tanzer can Help

If your council is considering refreshing its procurement framework or tender documentation, or if you have any questions about embedding social, ESG, or Aboriginal outcomes into your procurement practices, please do not hesitate to contact us. Our team has extensive experience helping local government design compliant, outcome-focused procurement strategies that deliver measurable community value.