Question Period Note: Increasing Indigenous involvement in procurement

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

• Public Services and Procurement Canada is committed to economic reconciliation with Indigenous peoples, and is working with Indigenous Services Canada and the Treasury Board of Canada Secretariat to increase Indigenous participation in federal procurement to meet the minimum target of 5% government-wide
• While PSPC did not achieve its 5% target in the 2022 to 2023 fiscal year, the department undertook extensive engagement initiatives with Indigenous partners to highlight Indigenous procurement opportunities, and outline the support available
• PSPC’s methodology did not account for the value of subcontracts awarded to Indigenous companies by non-Indigenous suppliers. Starting in 2024-2025, this has been adjusted to properly represent the value of contracts awarded to Indigenous businesses

If pressed on the 5% commitment:

• The Government of Canada is engaging Indigenous partners to help identify and reduce barriers to participation in federal procurement
• Public Services and Procurement Canada is taking concrete actions in this regard, such as:
• Indigenous-by-default approaches, where Indigenous participation must be considered in all procurements;
• the inclusion of Indigenous Participation Plans in contracts to provide subcontracting opportunities and other economic benefits like training and employment; and
• limited bidding to allow for a procurement to be limited Indigenous businesses

If pressed on the Indigenous Business Directory and verification of Indigeneity:

• Indigenous Services Canada is responsible for the verification of a business’s ability to meet the eligibility requirements to be listed on the Indigenous Business Directory
• It also confirms a business’s compliance with the Indigenous content requirements of the Procurement Strategy for Indigenous Business
• Together with Indigenous leaders and Indigenous Services Canada, we are determining a path forward to transfer the administration of the business lists to Indigenous partners

If pressed on alleged cases of Indigenous misrepresentation:

• Public Services and Procurement Canda is aware of Indigenous Peoples’ growing concern over instances of alleged Indigenous misrepresentation and supports Indigenous Services Canada’s work to address this issue
• We take allegations of wrongdoing and misrepresentation seriously and fully support Indigenous Services Canada in their audits of such cases
• Should Indigenous Services Canada deem a business to be non-compliant with the requirements of the Procurement Strategy for Indigenous Business, the Government of Canada can take a number of actions regarding the contracts awarded to that company, including contract termination and disqualification from participating in future set-aside requirements, as well as reporting any suspected fraudulent activity to law enforcement.
• When a department or agency identifies an integrity-related issue with a supplier, such as misrepresentation or a false certification, these instances should be referred to the Office of Supplier Integrity and Compliance for an assessment against the Ineligibility and Suspension Policy

On August 6, 2021, the Government of Canada announced a mandatory requirement for federal departments and agencies to ensure that 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 this initiative, 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 partnerships with organizations representing Indigenous people and businesses to best position the federal government to meet the 5% target. Organizations involved include: Assembly of First Nations, Canadian Council for Indigenous 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 its governing members, the Manitoba Métis Federation, and representatives from the broader Canadian Indigenous business community.

• The department has a minimum target to award 5% of the total value of procurements to Indigenous businesses. In 2022-2023, PSPC awarded 2.7% ($139 million) of the total value of its procurements to Indigenous Businesses
  • NOT PUBLIC: In 2023-2024, PSPC awarded 3.4% ($143 million) of the total value of its procurements to Indigenous Businesses
• Despite there being 60,000 Indigenous businesses in Canada, as of October 15, 2024, there are only approximately 2,900 businesses on the ISC-led Indigenous Business Directory