How Commonwealth property management is creating meaningful change in remote and regional Australia

An initiative that aims to deliver on new priorities in the management of Commonwealth real estate is creating lasting economic opportunities for small and Indigenous-owned business that previously struggled to engage with the public sector.

The remote and regional procurement strategy introduced by global real estate services company, JLL, which is a property adviser to the Whole of Australian Government, is also improving the workplace experience for Commonwealth staff in Australia’s far reaches and creating financial efficiencies through reduced travel of contractors.

The strategy has enabled more than 60 businesses to provide services related to the caretaking of government buildings in efforts that have generated over $276,000 in new business for regional and remote Indigenous suppliers since 2022.

“We set out with a goal to foster institutional changes in remote and regional Australia and empower local communities to be considered as government contractors, with the outcome of job creation and economic growth for thriving towns,” says Sam Walmsley, JLL’s Whole of Australia Government contract procurement lead.

A major component of JLL’s initiative was recognising the challenges faced by small-to-medium enterprises in winning government work.

Feedback from local communities was that the presence of government buildings in their towns came with opportunities that they struggled to capture.

Specific issues were the lack of clear avenues for engaging with large businesses like JLL and difficulty with collating the required collateral to be considered a compliant vendor so they could carry out work such as facilities management, cleaning and general maintenance. They faced barriers with filling in onboarding paperwork, establishing security clearances and using work order management systems.

A key move in turning this around was JLL’s appointment of a dedicated resource in Darwin to engage with vendors. Thomas Hilleary, a proud Larrakia man from Garramilla, with the role of vendor engagement specialist, has been instrumental in onboarding scores of new vendors located in towns across Northern Territory, Western Australia and north Queensland.

His efforts have contributed to a 25% increase in the engagement of small-to-medium-sized enterprises for the government against a 10% target and a 19% increase in engagement with Indigenous businesses under the government’s Indigenous Procurement Policy against a 4% target.

“Thomas’s appointment has been instrumental in breaking down the communication barriers and historical challenges with engaging with local Indigenous communities. This is particularly relevant when looking through the lens of big business and federal government, with feedback indicating a lack of community engagement with respect to making changes within communities and keeping jobs safe and secure within those communities,” Walmsley says.

Vendor feedback and workshop sessions with Hilleary and JLL’s procurement team have led to JLL simplifying its internal systems and processes for identifying and onboarding vendors, providing ongoing support, and implementing systems for ongoing feedback.

JLL’s remote and regional strategy has been fully supported by Australia’s federal government and guided by an advisory group consisting of representatives across government departments.

Early in the process, monthly group meetings resulted in a formal strategy white paper outlining the current state, next steps and future outcomes. This was ultimately endorsed by the relevant commonwealth stakeholders, which then lead to employment drive to find the right candidates to support the strategy. Hilleary was one of two appointments in Darwin aimed at executing the strategy.

The impact has been substantial. There has been a significant redistribution of work; 30% of spend has been diverted from larger organisations to local businesses, creating a more equitable distribution of economic opportunities.

Having a pool of local service providers also means value for money for government through reduced travel costs. The speed at which services can now be provided means Commonwealth staff who occupy buildings in regional and remote areas have a better experience of the places they work.

The initiative has also led to a 30% annual increase in spend for remote/regional vendors and a 14% increase in work orders issued since implementation.

Real estate, procurement and Indigenous bodies are taking notice, with the strategy receiving award nominations from Supply Nation, Social Traders, and in the Faculty awards. JLL has also been invited to attend the First Nations Leadership Summit in the Northern Territory in November 2024.

Hilleary won the Social Traders Game Changer 2024 award for his work on the strategy, further cementing its importance and impact.

It is hoped this increasing awareness around the initiative can create further momentum for improved supplier diversity among industries and positive change in remote and regional communities.

“By focusing on local engagement, cultural connection, and equitable distribution of opportunities, JLL’s remote and regional strategy has not only improved service delivery in Commonwealth property management, but also contributed to the economic development of remote and regional Australia. We hope that this can serve as a model for how large organisations can create meaningful, lasting change in partnership with local communities,” Walmsley says.