Question Period Note: Indigenous Procurement

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• This government is working hard with Indigenous partners to support Indigenous innovation and opportunities for entrepreneurs so that the Indigenous economy can contributing to building Canada’s as the strongest economy in the G7.
• The Indigenous procurement initiatives we are implementing reduce barriers and level the playing field for Indigenous businesses.
• Indigenous Services Canada ensures the integrity of Indigenous Procurement by verifying that businesses meet the eligibility requirements and verifying on a regular basis, through audits and routine contacts, that businesses maintain their eligibility to be registered within the Indigenous Business Directory.

The Procurement Strategy for Indigenous Business (PSIB) launched in 1996. It limits bidding in procurements to Indigenous businesses that meet PSIB eligibility criteria. To be considered for a federal contract that is limited to bidding under PSIB, a business must be listed on the Government of Canada’s Indigenous Business Directory (IBD).

To register on the IBD, a business must undergo an eligibility assessment and demonstrate that it is both 51% Indigenous owned and controlled. It is the responsibility of the IBD applicant to provide documentation (i.e., status cards, joint-venture agreements etc.) to complete this assessment. Once a business is actively registered, it is then eligible to bid on opportunities that have been set-aside under the PSIB program. For contracts awarded under PSIB, the successful Indigenous contractor must be listed on the IBD or a Modern Treaty business list and satisfy PSIB’s 33% Indigenous content requirement during the life of the contract. This means that the IBD contractor awarded the contract must, either by itself or in conjunction with IBD sub-contractors, deliver at least 33% of the total value of the work under the contract. In most cases, the IBD contractor will certify in their bid that they will meet the requirements of PSIB, including the 33% Indigenous content requirement, and the IBD Contractor will also agree that it may be subject to a post-award audit to determine its compliance with PSIB requirements. Post-award audits are usually only undertaken by ISC upon request by the requisitioning department’s contracting authority

If pressed on the Procurement Strategy for Indigenous Business
• The Procurement Strategy for Indigenous Business limits competition for some federal contracts to Indigenous owned and controlled businesses to encourage Indigenous procurement.
• After listening to Indigenous partners, Indigenous Services Canada (ISC) is actively collaborating with those partners to co-develop a new transformative Indigenous procurement strategy and implement improvements to the Procurement Strategy for Indigenous Business’ current operations.

If pressed on the Indigenous Services Canada Audit of Dalian Enterprises Inc. and Coradix Technology
• ISC has conducted audits of Dalian Enterprises Inc. and Coradix Technology in Joint Venture for compliance with the Procurement Strategy for Indigenous Business.
• The audits have determined that the joint venture was non-compliant with the Procurement Strategy for Indigenous Business, and Indigenous Business Directory criteria, and ISC has removed both Dalian Enterprises and the joint venture from the Indigenous Business Directory.

If Pressed on Algonquin Anishinabeg Nation Tribal Council‘s Human Rights Complaint
• All businesses applying to be registered on the Indigenous Business Directory are verified to ensure they meet the eligibility criteria. Additionally, ISC verifies the eligibility of each business on the directory regularly as part of the department's ongoing directory maintenance.
• Indigenous Services Canada is committed to the co-development of a new Transformative Indigenous Procurement Strategy that seeks to improve procurement policies and processes for Indigenous businesses.