Question Period Note: Increasing Indigenous involvement in Procurement

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

• Increasing the participation of Indigenous businesses in federal procurement is an important part of PSPC’s mandate and the Government’s agenda to pursue reconciliation and generate economic opportunities for Indigenous people while diversifying federal supply chains
  • PSPC is 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 worked closely with the Treasury Board of Canada Secretariat and Indigenous Services Canada to establish a government-wide policy and reporting framework that came into effect on April 25, 2022
• PSPC continues to work closely with TBS and ISC to 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 and guidance to support the implementation of the 5% target across government
• In support of achieving the 5% target, the Government of Canada has been consulting with Indigenous partners to identify barriers to participating in federal procurement
• We continue to work on improving our data collection to help other government departments make procurement decisions to help achieve our 5% target
• Achieving the 5% target across government will be rolled out through three different phases over the next three years

PSPC is working with Indigenous peoples and businesses to increase their participation in federal procurement more broadly. This is part of the Government of Canada’s commitment to reconciliation with Indigenous people and to fulfilling Canada’s obligations to Modern Treaties and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).

The 2022 National Indigenous Economic Strategy estimates that boosting Indigenous participation in Canada’s economy could add $30 billion to Canada’s GDP and create 135,000 new jobs. Through these initiatives, PSPC aims to leverage federal procurement to improve the socio-economic conditions of Indigenous communities across Canada while strengthening the government’s procurement supply chains.

To achieve the 5% target, PSPC is supporting the implementation of mechanisms to limit bidding for only Indigenous businesses certified through the Indigenous Business Directory (IBD) or Modern Treaty Area businesses. All Indigenous suppliers that are 51% owned and controlled by Indigenous persons are encouraged to register in the IBD to be eligible for this initiative. PSPC is developing new tools to support the procurement community and client departments and will continue to engage with Indigenous partners.

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.

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