Question Period Note: Increasing Indigenous involvement in procurement

Public Services and Procurement Canada, in partnership with Indigenous Services Canada and the Treasury Board of Canada Secretariat, 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
  • It is taking concrete action to increase Indigenous participation in procurement including:
  • considering Indigenous participation in all procurements;
  • including Indigenous Participation Plans in contracts to provide subcontracting opportunities and other economic benefits; and
  • providing dedicated procurement opportunities to 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 and confirms its compliance with the Procurement Strategy for Indigenous Business
• Together with Indigenous leaders, Indigenous Services Canada is determining a path forward to transfer the administrative functions of the Indigenous Business Directory

If pressed on the recent human rights complaint:

• Indigenous Services Canada is responsible for the verification of a business’ ability to meet the eligibility requirements to be listed on the Indigenous Business Directory and confirms its compliance with the Procurement Strategy for Indigenous Business
• Public Services and Procurement Canada supports Indigenous Services Canada in its efforts to ensure the integrity of the Indigenous Business Directory
• Public Services and Procurement Canada is also taking action to strengthen oversight of procurement processes through deterring, detecting and responding to impropriety in procurement, including for cases of Indigenous misrepresentation

If pressed on alleged cases of Indigenous misrepresentation:

• The department takes allegations of wrongdoing and misrepresentation seriously and fully support Indigenous Services Canada in its 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 such as contract termination, disqualification, suspension or debarment

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 by 2024-2025. The announcement included Canada’s commitment to continue meaningful engagement to co-develop a longer-term transformative approach to Indigenous procurement and to increase the capacity of Indigenous-owned businesses to compete and receive more federal procurement contracts.

Public Services and Procurement Canada (PSPC), Indigenous Services Canada (ISC) and the Treasury Board of Canada Secretariat support the Government in meeting this target by building partnerships with organizations representing Indigenous peoples and businesses.

PSPC did not achieve its 5% target commitment in the 2023 to 2024 fiscal year; however, concrete actions are being taken to help increase Indigenous business participation in federal procurement, including: developing Indigenous Participation Plans to boost subcontracting with Indigenous businesses and provide employment and training opportunities for Indigenous Peoples; applying Indigenous-by-default measures to consider Indigenous participation in all procurements; using limited bidding among prequalified Indigenous offerors; updating supply methods to include Indigenous businesses; structuring and unbundling projects to enable competitive Indigenous bids; and incorporating weighted Indigenous criteria in bid evaluations. PSPC also continued to increase awareness of federal procurement opportunities through its outreach and engagement activities.

The Algonquin Anishinabeg Nation Tribal Council (AANTC) has filed a human rights complaint alleging that ISC and PSPC have violated the Canadian Human Rights Code concerning ISC’s Indigenous Business Directory, a key tool used by government departments and agencies, including PSPC, to identify and engage Indigenous businesses for procurement. The complaint alleges that ISC has allowed non-Indigenous companies to access procurements intended for Indigenous businesses, creating a systemically discriminatory process. The complaint further alleges that PSPC has violated the Code, in that it relies on ISC for the purposes of verifying the eligibility of businesses receiving contracts under the Procurement Strategy for Indigenous Business Set-aside Program, and for maintaining the integrity of the Indigenous Business Directory inclusive of eligibility requirements.

• The department has a minimum target to award 5% of the total value of procurements to Indigenous businesses
  • In 2023-2024, Public Services and Procurement Canada awarded 3.4% ($143 million) of the total value of its procurements to Indigenous Businesses
  • As of May 2025, there are approximately 3,000 businesses on the Indigenous Business Directory, led by Indigenous Services Canada
  • Starting in 2024-2025, PSPC’s methodology to calculate the 5% target will include the value of subcontracts awarded to Indigenous companies by non-Indigenous suppliers
  • In June 2025, the Algonquin Anishinabeg Nation Tribal Council filed a human rights complaint alleging that ISC and PSPC have violated the Canadian Human Rights Code (CHRC) through discriminatory policies and practices that allow non-Indigenous persons or businesses to be awarded contracts set-aside for Indigenous businesses