Question Period Note: Increasing Indigenous involvement in Procurement

About

Reference number:
PSPC-2022-QP-00004
Date received:
May 26, 2022
Organization:
Public Services and Procurement Canada
Name of Minister:
Tassi, Filomena (Hon.)
Title of Minister:
Minister of Public Services and Procurement

Issue/Question:

Public Services and Procurement Canada (PSPC) is actively working to increase the participation of Indigenous businesses in federal procurement.

Note: A separate QP card on identifying diverse firms covers the issue of self-identification of Indigenous firms

Suggested Response:

  • Increasing the participation of Indigenous businesses in federal procurement is an important part of my mandate commitment and the Government’s agenda to generate economic opportunities for Indigenous people
    • We are working with Indigenous Services Canada and the Treasury Board of Canada Secretariat to have 5% of the value of federal contracts awarded to Indigenous businesses
    • From March 2020 to March 2022, Public Services and Procurement Canada, as a common service provider, awarded $1.3 billion through 1,744 contracts to Indigenous Suppliers

If pressed on the 5% commitment:

  • The 5% commitment is a minimum target and we have a lot of work ahead of us
  • As a key step forward, my department has been working closely with the Treasury Board of Canada Secretariat and Indigenous Services Canada to establish a government-wide policy framework and create meaningful and immediate changes to the Procurement Strategy for Indigenous Business
  • We also continue to work in close collaboration with Indigenous partners and other government departments to develop tools to support the implementation of the 5% target across government

If pressed on Indigenous participation in federal procurement for COVID-19:

  • In response to the COVID-19 pandemic, Public Services and Procurement Canada , on behalf of the Public Health Agency of Canada and other federal departments and agencies, moved to urgently procure necessary personal protective equipment and other goods and services to protect frontline health care workers
  • Where possible, procurements were directed to Indigenous suppliers and, as of March 24, 2022, Public Services and Procurement Canada awarded 42 contracts to self-identified Indigenous businesses in response to COVID-19
  • These Indigenous supplier contracts are collectively worth more than $197 million and include logistics and air charter services, accommodation and cleaning services, IT professional services, medical and laboratory supplies, masks, hand sanitizer and thermometers
  • For example, Public Services and Procurement Canada signed contracts with 7 Indigenous firms worth approximately $6 million for a total of 35 million non-medical disposable masks
  • As we move forward, my department will continue working with other stakeholders to increase the participation of Indigenous businesses in federal procurement as it relates to our COVID-19 response efforts
  • On April 25, 2022, TBS, in collaboration with PSPC and ISC, implemented the policy and reporting framework for the mandatory minimum target of 5%

Background:

PSPC is working with Indigenous groups to increase their participation in federal procurement more broadly. This includes ongoing work with the Indigenous Business COVID-19 Taskforce, which brings together numerous Indigenous groups, including the Canadian Council for Aboriginal Business (CCAB), National Aboriginal Capital Corporation Association (NACCA), Inuit Tapiriit Kanatami (ITK) and Pauktuutit Inuit Women of Canada. The taskforce seeks to identify and mobilize Indigenous businesses to provide medical equipment and supplies, including by creating a database of Indigenous businesses. Indigenous Services Canada (ISC) is the lead department federally, with PSPC supporting the taskforce’s work. PSPC is leveraging this database to increase the participation of Indigenous businesses in federal procurement.

PSPC also works in collaboration with the Council for the Advancement of Native Development Officers (CANDO), a national Indigenous organization involved in community economic development. The partnership is focused on helping the Council and its economic development officers support Indigenous businesses across Canada by providing information, focused access, and services from Procurement Assistance Canada.

Furthermore, the Minister’s Supplier Advisory Committee contributes to understanding and addressing barriers that smaller businesses face in federal procurement, including those faced by Indigenous-owned businesses. The Canadian Aboriginal and Minority Suppliers Council (CAMSC), represented by its President Cassandra Dorrington, has been an active and contributing member since the Supplier Advisory Committee’s first meeting in 2013.

Additional Information:

None