Procurement Ombud Calls for Stronger Indigenous Procurement Policy to Advance Economic Reconciliation
News release
Ottawa, Ontario, March 26, 2026
The Procurement Ombud released a report detailing the findings of his Procurement Practice Review (PPR) of contracts awarded to Indigenous businesses under the Procurement Strategy for Indigenous Business (PSIB).
For three decades, the federal Government has sought to support Indigenous participation in federal procurement through the PSIB, which dedicates certain contracts for Indigenous businesses. These efforts play a key role in reconciliation by promoting economic opportunities and strengthening Indigenous participation in federal contracting.
The review first assessed whether Indigenous Services Canada (ISC) fulfilled its responsibilities to guide and support departments applying the PSIB. It also examined the procurement management frameworks and guidance of four federal departments—Employment and Social Development Canada (ESDC), Correctional Service Canada (CSC), Shared Services Canada (SSC) and Public Services and Procurement Canada (PSPC), to determine whether they supported the proper application of PSIB requirements. In addition, the Procurement Ombud reviewed 27 PSIB set‑aside contracts issued either directly by ESDC, CSC, SSC or through PSPC to determine whether their procurement processes aligned with applicable legislation, regulations, policies and guidance, and upheld the principles of fairness, openness and transparency. The Ombud identified significant deficiencies related to the guidance, oversight and accountability of the PSIB, undermining fairness and limiting the Strategy’s ability to deliver meaningful economic benefits for Indigenous businesses.
These include the lack of a centralized, government‑wide policy, which has left departments relying on fragmented and outdated guidance and has resulted in inconsistent application of PSIB requirements. Other concerning findings are weak oversight and audit practices, as well as reporting issues that overstate the impact of the 5% target for the total contract value of federal contracts awarded to Indigenous businesses..
The review further highlighted a major gap in supplier recourse: because PSIB set‑asides fall outside trade agreements, Indigenous suppliers cannot bring complaints to the Canadian International Trade Tribunal (CITT) or the Office of the Procurement Ombud (OPO). Instead, their only option is to pursue Federal Court action, ultimately leaving them with unequal access to recourse mechanisms when compared to non-Indigenous suppliers.
To address these issues and strengthen the integrity of Indigenous procurement and support economic reconciliation, the Ombud made 3 recommendations.
The full report is available on OPO’s website.
Quotes
"It is essential that federal procurement commitments designed to advance reconciliation translate into real economic opportunities for Indigenous communities. Significant work remains to ensure federal procurement lives up to the commitments to Indigenous people."
– Alexander Jeglic
Procurement Ombud
Quick facts
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OPO is an independent organization that promotes fairness, openness, and transparency in federal procurement by reviewing procurement practices, investigating supplier complaints, and providing alternative dispute resolution services.
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OPO reviews the practices of federal departments for acquiring goods and services, if there are reasonable grounds to do so, taking into consideration factors such as consistency with relevant federal procurement requirements.
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The Procurement Ombud launched this review of procurement practices for the award of contracts to Indigenous businesses to assess their fairness, openness, and transparency and their compliance with established requirements.
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The review examined procurement practices across four federal organizations: Employment and Social Development Canada (ESDC), Correctional Service Canada (CSC), Shared Services Canada (SSC), and Public Services and Procurement Canada (PSPC) when contracting on behalf of these departments, including a detailed assessment of 27 PSIB set-aside contracts. As well, OPO reviewed the guidance and support provided by Indigenous Services Canada (ISC) for the implementation of PSIB requirements. The review did not include an examination of how ISC manages the Indigenous Business Directory (IBD).
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OPO offers Alternative Dispute Resolution services for contractual disputes regarding the interpretation or application of a contract's terms and conditions.
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Contacts
Media Inquiries
Office of the Procurement Ombud
Phone: 613‑947‑9755
Email: MediaBOA.OPOMedia@boa-opo.gc.ca