Question Period Note: Increasing Indigenous involvement in procurement

Public Services and Procurement Canada (PSPC) in partnership with Indigenous Services Canada and Treasury Board of Canada Secretariat are actively working to increase the participation of Indigenous businesses in federal procurement.

• The Government of Canada is committed to economic Reconciliation with Indigenous Peoples. As part of this commitment, we will promote socio-economic outcomes by increasing economic opportunities for First Nations, Inuit and Métis businesses through the federal procurement process
• PSPC is working with Indigenous Services Canada and the Treasury Board of Canada Secretariat to implement the government-wide commitment for a minimum target of 5% of the total value of federal contracts awarded to Indigenous businesses by March 31, 2025

If pressed on the 5% commitment:

• The Government of Canada is engaging Indigenous partners to identify and reduce barriers to participation in federal procurement
• While PSPC did not meet its 5% target in fiscal year 2022 to 2023 (Year 1), the department remains committed to successful implementation, and is accelerating efforts to meet and sustain the target moving forward. Indigenous Services Canada’s final reporting on results for 2022-2023  was published on the Open Government Portal in March 2024
• PSPC is taking concrete actions to increase Indigenous participation in procurement through:
  • Indigenous-by-default approaches
  • The use of the Procurement Strategy for Indigenous Business
  • Limited bidding
  • Subcontracting opportunities
  • Indigenous Participation Plans
  • Updating methods of supply

• PSPC is working to increase engagement through Procurement Assistance Canada to build awareness among procurement authorities on Indigenous business capacity and among Indigenous suppliers on procurement opportunities
• PSPC is also supporting Indigenous Services Canada by promoting supplier registration on the Indigenous Business Directory, and by analyzing Indigenous Business Directory registrations by commodity areas, such as Information Technology and Construction services, to identify Indigenous capacity and advance outreach efforts
• Finally, PSPC is examining working with Indigenous Services Canada to partner with Indigenous Organizations to explore more inclusive alternatives to the Indigenous Business Directory

If pressed on improving reporting:

• Federal organizations are being included in the minimum 5% target in three phases, recognizing that some organizations may require additional time to adjust their approaches to meet the 5% target
• 32 Phase I organizations, including PSPC, reported progress against the target in fiscal year 2022 to 2023 with results publicly available on the Open Government Portal in March 2024. The 20 phase II organizations' progress in fiscal year 2023 to 2024 will be publicly available by March 2025, while the remaining 44 phase III organizations’ progress will be available by March 2026

If pressed on increasing indigenous business registrations:

• A key objective of the minimum 5% Target is to increase registrations of Indigenous businesses onto the Indigenous Business Directory
• In support of the government-wide implementation of the 5% Target, PSPC actively supports Indigenous Services Canada with the objective of increasing registrations on both the Indigenous Business Directory and Modern Treaty business lists
• Indigenous Services Canada is responsible for implementing and advising on the Procurement Strategy for Indigenous Business, managing the Indigenous Business Directory, including eligibility criteria, as well as the verification, certification, and audit of Indigenous businesses and Indigenous content criteria

On August 6, 2021, the Government of Canada announced it is implementing a mandatory requirement for federal departments and agencies to ensure a minimum of 5% of the total value of contracts are held by Indigenous businesses, to be phased in over three years.

To facilitate transparent and timely public reporting on the three year implementation from 2022 to 2025, a reporting framework was established and guidelines on proactive disclosure were amended as of April 1, 2022.

Public Services and Procurement Canada, Indigenous Services Canada and the Treasury Board of Canada Secretariat continue to build external partnerships that will help meet the 5% target. Organizations involved include: Assembly of First Nations, Canadian Council of Aboriginal Business, Council for the Advancement of Native Development Officers, Inuit Tapiriit Kanatami, National Aboriginal Capital Corporations Association, National Indigenous Economic Development Board, Métis National Council and Corporate Canada.

• The department has a minimum target to award 5% of the total value of procurements to Indigenous businesses. For 2022 to 2023, PSPC awarded 2.7% ($139 million) of the total value of its procurements to Indigenous Businesses
• Despite there being 60,000 Indigenous businesses in Canada, as of May 9, 2024 there are currently just over 2,800 businesses on the Indigenous Business Directory (run by Indigenous Services Canada) that contribute to the 5% target
• As a common service provider, PSPC continues to support departments and agencies in implementing strategies to achieve the 5% target through increased participation and inclusion of Indigenous businesses in federal procurement