Learn how federal Indigenous procurement works
How contracting with Indigenous business works and the next steps Indigenous business owners can take to win contracts awarded by the Government of Canada.
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Government support for Indigenous procurement
The Government of Canada is committed to fostering economic reconciliation in its procurement activities, leading to opportunities for Indigenous businesses.
We do this by:
- respecting modern treaties that include procurement obligations
- limiting competition for federal contracts among businesses listed on the Indigenous Business Directory (IBD) through programs, such as the Government of Canada’s Procurement Strategy for Indigenous Business (PSIB)
- implementing a mandatory requirement to ensure a minimum of 5% of the total value of government contracts are awarded to Indigenous businesses
Federal departments may request that bidders submit an Indigenous Participation Plan (IPP) with their proposals. An IPP may be used:
- to complement limited bidding
- independently when it is not practical to limit bidding, or
- to meet modern treaty procurement obligations
Upon award, IPPs become contractual obligations that are tracked, reported on and legally enforceable.
An IPP may include a bidder’s commitments to incorporate Indigenous:
- skills development
- other forms of indirect benefits through the course of the contract to Indigenous businesses and peoples
The Government of Canada also encourages Indigenous businesses to compete for open contracts, standing offers and supply arrangements tendered by federal departments and agencies whenever possible.
Modern treaties and procurement
When there is an opportunity to complement or strengthen existing economic measures outlined in a modern treaty, or when a modern treaty does not contain economic measures, Canada may incorporate various procurement strategies and tools. Whenever conducting procurements subject to modern treaty obligations, Canada will ensure that any strategy applied does not infringe upon the constitutionally-protected rights of beneficiaries.
Find out if your business is eligible for procurement opportunities under PSIB
Limiting bidding under PSIB is implemented through the Set-Aside Program for Indigenous Business. It is mandatory to consider the Set-Aside Program in procurements that are destined for an area where Indigenous people make up at least 51% of the population and/or where the Indigenous population will be the recipient of the good, service or construction, and when there is no conflict with modern treaty procurement obligations.
To be considered for a federal government contract that is limited to bidding under PSIB, a business must be:
- listed on the Government of Canada’s Indigenous Business Directory
- listed on a modern treaty business list or directory (See modern treaty business directories or lists)
Other requirements for businesses who would like to be considered for award of contracts limited to bidding under PSIB’s Set-Aside Program can be found in Annex 9.4 of Public Services and Procurement Canada’s Supply Manual.
Register for the Indigenous Business Directory
For information on the Indigenous Business Directory and to register, visit Register for the Indigenous Business Directory.
Should you have questions about federal Indigenous procurement, please contact us.
If you are seeking assistance regarding how to do business with the Government of Canada, please contact Procurement support for businesses.
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