Procurement Strategy for Indigenous Business
PSIB Policy and Implementation
There are currently more than 37,000 Indigenous owned businesses in Canada, covering a wide variety of economic sectors. The Government of Canada recognizes that an effective way to improve the well-being and quality of life of Indigenous people in Canada is to improve their economic opportunities. Indigenous economic development also helps strengthen the Canadian economy in general.
The Government of Canada spends approximately $14 billion a year on goods, services, and construction. As the Government’s main purchasing arm, Public Works and Government Services Canada (PWGSC) plays a key role by helping departments define their requirements or scope of work, and obtaining the goods and services they need at the right price. However, you don’t have to be a big firm to do business with the federal government. In fact, most government contracts are valued at less than $100,000.
What do we do?
What Are Set-Asides?
The Federal Framework for Indigenous Economic Development, launched in 2009 by the Government of Canada, aims to ensure that First Nations, Inuit and Metis have every opportunity to share in Canada’s economic opportunities and prosperity. PSIB delivers on the Framework’s strategic priority of strengthening Indigenous entrepreneurship by enhancing support for Indigenous businesses to market their goods and services.
Mandatory Set-Aside
All procurements over $5,000 for which Indigenous populations are the primary recipients are to be restricted exclusively to qualified Indigenous suppliers.
Set-aside procurements are subject to the normal competitive principles of contracting policy intended to ensure that Canadians receive best value for their money. The procurement will often be open for competition, limited to Indigenous firms. The contracting authority must feel confident that operational requirements, best value, prudence and probity, and other elements of sound contracting management, can be assured.
Voluntary Set-Aside
Used by federal departments and agencies in procuring goods, services, or construction where Indigenous capacity exists.
Federal departments and agencies voluntarily decide to apply set-asides where sound contracting management can be assured and maintained. In all cases, the Indigenous supplier must be PSIB registered.
