Kennelly Constructions, a leading indigenous contract presented to corporate members of Supply Nation on the importance of including Indigenous businesses in their supply chain and how they can achieve this by moving from transactional to partnership procurement.
Kennelly Constructions Presentation on Indigenous Procurement
1.
2. I wish to acknowledge the traditional custodians of
the land we are meeting on, the Turrbul people
and pay my respect to the elders past, present and
to emerging community leaders.
I wish to acknowledge and respect their continuing
culture and the contribution they make to the life
of this city and this region.
I would also like to acknowledge and welcome
other Aboriginal and Torres Strait Islander people
who may be attending today’s event.
3. Our Vision
To become the largest indigenous owned, multi-
disciplinary Engineering, Construction and
Facility Maintenance business in Australia which
has greater than 50% indigenous employees
4. WHO WE ARE
Adam and I are proud Bundjalung Men
Kennelly Constructions are a leading
Indigenous contractor providing a wide range
of engineering, construction, maintenance and
support services across the public and private
sectors. People are our most valuable asset.
5. Our Journey
2010 2011 2012 2013 2014 2015 2016
Started business
and won contracts:
NNA pipeline
project, plant hire
Sunshine Coast
Council. Won
contracts with QLD
Government
Roadtek
Won first hard
dollar contract
$1m with Abigroup
(Lend Lease) &
$2.5m Plant hire
on Road Project.
Gain Electrical &
Builders Licenses
Won first contract
in coal industry;
first with
Hutchinsons
($3.5M), Leightons
($2M), then
Abigroup ($6M).
Won first electrical
substation ($1.5m).
Set up office in
Darwin.
Won $500K Project
at Detention
Centre, Won $2M
civil project –
Decmil on Shell
Prelude project, NT
Certified aboriginal
business Supply
Nation
Won first project
on Ichthys LNG
Project in Darwin.
$4m Tailings rehab
project . $3m
Industrial
Subdivision
Won first project
with Department
of Defence ($2.3m)
in the NT.
Opened office in
Canberra, ACT
Gained our Federal
Safety
Accreditation
Won over $18m
with Department
of Defence across
Vic, WA, Qld & NT
6. INDIGENOUS AND COMMUNITY ENGAGEMENT
• Scholarship: Southern Cross University, for
Bundjalung students undertaking Engineering
• New Scholarship at Charles Darwin University for
Indigenous Civil Engineering Student
• Inaugural Sponsors: Aboriginal Achievement,
QLD Young Achiever Awards
• Sponsors of Sunshine Coast team- Murri Rugby
League Carnival
• Kennelly Constructions strives to utilize the
goods and services of other Indigenous
organizations wherever possible.
7. Government’s Journey
Shane Kennelly (Kennelly Constructions), Paul Kruspe
(Assistant Commissioner ATO), Adam Kennelly
(Kennelly Constructions) & Luke Carroll (MC 2016
Connect Gala Dinner)
Government Member of the Year: ATO at the Connect
2016 Supplier Diversity AwardsFirst 11 months Federal Government awarded 1070 Contracts worth $229m
This compares to $6.2m in 2012-13
Department of Defence leading the way in both number of contracts and by
total value
Departments are looking at ways to package procurement opportunities so
all levels of indigenous businesses can participate
Departments are using select tenders process for indigenous business
We have seen a change in attitudes from procurement teams which had
perceptions that indigenous businesses didn’t have capacity or capability to
deliver
We have had multiple successful Meet the buyers forums in Canberra where
Federal Government Departments have opportunity to meet Indigenous
businesses face to face
8. Corporate’s Journey
Kim Collard from Kulbardi, Shaun Hodgins from
Compass Group & host Luke Carroll
Corporate Member of the Year: Compass Group at the
Connect 2016 Supplier Diversity Awards
Pre IPP
Prior to the IPP we seen Corporates requiring indigenous businesses to be
certified by supply nation
Approximately 650 Registered RAPS since 2006 of which there are
approximately 160 registered by Corporates
Reconciliation Australia reports that as at October 2015
3900 partnerships have been created and $32m Good and Services
purchased from Supply Nation Certified Suppliers
Most RAPS to date tend to be focused on philanthropic or corporate social
responsibility
Post IPP
We are seeing subcontract tenders on Government Project referencing the
requirements for tenderers to meet IPP
We have seen corporates strategically aligning with indigenous businesses
to tender for Government projects
9. Corporates and Government can provide procurement opportunities for
Indigenous business from startup thru to more mature businesses
Replace Procurement models from Transactional to Partnership
• Break down product or service into chunks
• Use Supply Nation to find suitable certified suppliers
• Examine the tender process for barriers
• Decide on suitable evaluation criteria
• Select the supplier and offer mentoring
• Manage and support performance
MOVING TOWARDS PARITY
10. MOVING TOWARDS PARITY
Although relationship building is a part of almost all
business partnerships , the relationship you start with an
indigenous business has the ability to be life changing for
individuals and possibly the entire community
11. WWW.KENNELLY.COM.AU
If you you would like more information on how Kennelly
Constructions can support you in delivering your next
project please contact
Shane Kennelly
P. 07 5450 1329
E. shane.kennelly@kennelly.com.au