Question Period Note: Diversity and Inclusion in Procurement

Public Services and Procurement Canada (PSPC) is delivering on the Government of Canada’s commitments to increase the diversity of bidders on government contracts.

• Public Services and Procurement Canada is helping more businesses get involved in federal procurement to build a more inclusive economy
  • In fact, in early 2022 it launched the Supplier Diversity Action Plan, which outlines concrete steps to increase the participation of businesses from underrepresented groups in federal procurement
  • The Plan stems from continued engagement with suppliers from underrepresented groups to better understand the barriers they face and their needs
  • It includes a Policy on Social Procurement, allowing the department to create dedicated opportunities to increase supplier diversity in procurement, and bring positive benefits to communities across Canada
  • It also includes enhanced services, delivered through Procurement Assistance Canada, to help underrepresented groups successfully participate in federal procurement

If pressed on next steps:

• Public Services and Procurement Canada will continue to engage with underrepresented groups to guide its efforts to advance supplier diversity, notably on how the Policy will be implemented and applied
• Through these important discussions, we are working towards the launch of a Supplier Diversity Program which will outline approaches to enhance supplier diversity in PSPC-led procurements. This will include guidance and tools for the procurement community to begin implementing a Supplier Diversity Program

If pressed on supporting Black businesses:

• Budget 2021 proposed to leverage federal procurement to achieve socio-economic objectives, including supplier diversity, such as running competitions open to Canadian businesses led by equity-deserving groups
• In January 2021, Public Services and Procurement Canada launched the Black Business Procurement Pilot to open bidding opportunities for small Black-owned or led businesses, which consisted of 12 procurement opportunities across the country, conditionally limited to small Black-owned or -led businesses

If pressed about data collection on supplier diversity in procurement:

• In May 2021, Public Services and Procurement Canada’s Policy on Social Procurement came into effect, enabling the department to collect data on the diversity of its suppliers to support supplier diversity initiatives
• Work is underway to start collecting data through CanadaBuys to inform decision-making on supplier diversity initiatives and monitor progress over time

If pressed about definition and certification of underrepresented suppliers:

• Definition and certification are important aspects of supplier diversity initiatives
• A common federal approach to the definition and certification of underrepresented suppliers will be essential to mitigate the risk of fraud and ensure that contracts related to supplier diversity initiatives are awarded to the targeted groups
• In the spring of 2022, Public Services and Procurement Canada engaged with stakeholders, most notably from equity-deserving groups, to identify approaches to definition and certification and co-develop the Supplier Diversity Program and the Black Entrepreneurship Procurement Program
• The Supplier Diversity Program is currently under development and PSPC will begin to launch concrete actions to begin program implementation in the near future
• PSPC currently uses self-attestation to certify suppliers, however some stakeholders have been advocating for third-party certification

PSPC has been working to address inequities since 2018, by modernizing its procurement practices and encouraging suppliers from diverse backgrounds to be a part of the federal supply chain. This included a two-year Socio-Economic Procurement Experimentation Cycle, from 2018 to 2020, which aimed to leverage the government’s significant purchasing power to pursue socio-economic outcomes through procurement. The department also undertook a Black Business Procurement Pilot in 2021 to expand procurement opportunities for Black entrepreneurs.

Budget 2021 and the 2021 Mandate Letter reconfirmed the Government’s commitment to social procurement, including supplier diversity, to support procurement opportunities for specific communities.

PSPC’s Policy on Social Procurement came into effect in May 2021, which allows the department to create dedicated opportunities to increase diversity and inclusion in PSPC procurements. More specifically, the Policy will facilitate the inclusion of socio-economic measures in PSPC procurement to support the goal of achieving best value for the Crown and, in turn, for Canadians. A Supplier Diversity Program outlining how the Policy will be implemented and applied is currently under development.

PSPC also released two Requests for Information (RFIs) to better understand the procurement experience of businesses owned or led by persons with disabilities and the LGBTQ2+ community.

Moving forward, a common federal approach to the definition and certification of underrepresented suppliers will be essential to mitigate the risk of fraud and ensure that contracts related to supplier diversity initiatives are awarded to the targeted groups. This will require collaboration across federal organizations. PSPC currently uses self-attestation to certify suppliers, including for Indigenous Procurement, however some stakeholders have been advocating for third-party certification.

Actions taken to ensure diversity of bidders (Indigenous, LGBTQ+, racialized and young people), include:

• Coaching service
• Black Business Procurement Pilot
• Policy on Social Procurement (May 2021)
• Supplier Diversity Action Plan
• Three RFIs for businesses owned or led by Black, persons with disabilities, and the LGBTQ2+ community

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