Question Period Note: Diversity and inclusion in procurement

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

• Public Services and Procurement Canada is helping more and more businesses owned or led by underrepresented groups get involved in federal procurement
  • In January 2022, the Department launched the Supplier Diversity Action Plan, which outlines concrete steps to increase the participation of underrepresented businesses in federal procurement
  • The Plan includes continued engagement with underrepresented suppliers; enhanced services to help underrepresented groups successfully participate in federal procurement; and a Policy on Social Procurement which aims to create dedicated opportunities to increase supplier diversity in federal procurement

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

• The Department is currently developing a program to increase supplier diversity
• In developing this program, we consulted a wide variety of stakeholders, including the Supplier Diversity Alliance
• I welcome the comments from the Alliance and I am reviewing the proposed program with my department
• Department officials continue to prepare to launch the program in the near future and I look forward to sharing more information and continuing to work with our stakeholders to ensure its success

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 proposed Supplier Diversity Program and the upcoming Black Entrepreneurship Procurement Program

If pressed on 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
• This is an important step and will be a key tool to support diversifying our supplier base

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

Since 2018, Public Services and Procurement Canada has been working to address inequities by modernizing its procurement practices and encouraging suppliers from diverse backgrounds to participate in the federal supply chain.

Such modernization efforts 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 positive socio-economic outcomes through procurement.

• Public Services and Procurement Canada manages the procurement of goods and services valued at approximately $25 billion per year and is the central federal purchasing agent and real property manager of the Government of Canada;
  • 8% of Canadian small and medium-sized enterprises (SMEs) are currently led or owned by members of underrepresented groups
  • Key developments to date include a Supplier Diversity Action Plan, a Social Procurement Policy and a Black businesses procurement pilot
  • The results of the pilot are helping to inform the development of new and targeted initiative for Black business owners seeking federal procurements, as well as Public Services and Procurement Canada’s Supplier Diversity Program
  • The mandate letter for the Minister of Public Services and Procurement includes a commitment to increase the diversity of bidders on government contracts