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  • Writer's pictureDon Richardson

Minimum 5% Indigenous Procurement - Now Mandatory for ALL Federal Departments and Agencies

By Don Richardson, IBA Braiding: THIS ---> Measures announced August 8, 2021 by Canadian Council for Aboriginal Business (CCAB) and Public Services and Procurement Canada (PSPC) will include a mandatory requirement, for ALL federal departments and agencies, to direct a minimum of 5% of the total value of contracts to Indigenous businesses, and a mandatory requirement of public reporting of progress against the target.

Membertou First Nation - near Sydney on Cape Breton Island - an example of a First Nation that is experiencing a very successful economic development program (Photo: Paul McKinnon)

In support of this requirement, Indigenous Services Canada will invest $35.2 million over five years to modernize the Procurement Strategy for Aboriginal Business. This will include expanding the geographical areas where federal organizations must first consider procuring with Indigenous businesses and broadening the definition of “Indigenous business” to enable more businesses to meet the eligibility criteria.

This will have an immediate impact on federal infrastructure projects, and the agreements that will be negotiated between federal project proponents and Indigenous governments and businesses. The requirement will be phased in over 3 years, beginning this year, with a number of federal departments who are expected to be ready to immediately begin this work, with full implementation expected by 2024.

“This is a pivotal moment in harnessing the potential of the Indigenous economy,” said CCAB President and CEO, Tabatha Bull. “CCAB, along with Indigenous leaders past and present, have been advocating for these changes. Today’s announcement shows that we have not only been listened to, but we have been effective in supporting changes that will benefit Indigenous businesses. It is an incredible moment to see the results of our efforts to affect positive change.”

We congratulate the very many people involved in moving this forward for the past few years. This is a game changing accomplishment. Parties involved included the National Aboriginal Capital Corporations Association (NACCA), the Canadian Council for Aboriginal Business (CCAB), the Council for the Advancement of Native Development Officers (Cando), the Assembly of First Nations (AFN), the National Indigenous Economic Development Board (NIEDB) and the Metis Nation of Alberta (MNA). Bilateral engagement has also taken place with Inuit Tapiriit Kanatami (ITK) and the Native Women’s Association of Canada (NWAC).

Full announcements here:

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