Question Period Note: Diversity and Inclusion in Procurement

Public Services and Procurement Canada and Shared Services Canada is delivering on the Government of Canada’s commitment to increase the diversity of bidders on government contracts.

• Public Services and Procurement Canada and Shared Services Canada are helping more businesses owned or led by underrepresented groups get involved in federal procurement to build a more inclusive economy
  • In January 2022, the Department 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 their needs and the barriers they face
  • It includes enhanced services, delivered through Procurement Assistance Canada, to help underrepresented groups successfully participate in federal procurement
  • It also includes a Policy on Social Procurement to create dedicated opportunities to increase supplier diversity in procurement, and bring positive benefits to racialized and underrepresented communities across Canada
  • I will soon be releasing a Supplier Diversity Program that will include specific approaches to enhance supplier diversity in Public Services and Procurement Canada-led procurements

If pressed on the letter from the Supplier Diversity Alliance Canada:

• I have received the correspondence from the Alliance. We consulted stakeholders broadly in the development of the program and my officials shared the proposed program with the Public Services and Procurement Canada Supplier Advisory Committee as part of this ongoing consultation process and based on the Terms of Reference of that committee
• I welcome feedback from the Committee, as well as from the broader stakeholder community
• My officials continue to prepare to launch the program in the near future and we look forward to working with our stakeholders to ensure its success
• We will address the specific elements raised in the letter from the Alliance during the program launch and as part of our ongoing stakeholder engagement

If pressed on supporting Black businesses:

• 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
• Lessons learned from this pilot are being incorporated into the recently developed Supplier Diversity Program and the upcoming Black Entrepreneurship Procurement Program

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 collect 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. We are continuing to explore certification options through research and consultation with industry and suppliers
• 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 as part of the Supplier Diversity Program and the development of a Black Entrepreneurship Procurement Program
• The Supplier Diversity Program has been developed and Public Services and Procurement Canada will begin to launch concrete actions for program implementation in the near future

If pressed about small and medium enterprises

• In 2021 to 22, 66% of Shared Services Canada funded contracts were awarded to small and medium enterprises for a value of $746 million
• In 2021 to 2022, Shared Services Canada awarded contracts to 323 different small and medium enterprises. Of these small and medium enterprises, 307 were Canadian, representing 95% of all small and medium enterprises that received Shared Services Canada contracts
• Of the contracts awarded by Shared Services Canada to small and medium enterprises in 2021 to 2022, 99% of the total volume and 99% of the total value were awarded to Canadian small and medium enterprises

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