Diversity and inclusion in procurement: Standing Committee on Government Operations and Estimates—April 29, 2022
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Shared Services Canada: Procurement modernization and supplier diversity
Key messages
- Shared Services Canada (SSC) aims to do everything possible to unlock further value from federal procurement to drive innovation and economic growth, while reducing the barriers to entry for diverse suppliers, such as small and medium-sized enterprises (SME) and companies owned and operated by under-represented groups
- SSC is working to simplify its contracts and business processes to make it easier for departments and agencies to buy the goods and services they need to deliver their programs to Canadians
- SSC is working to further increase supplier diversity and enhance economic and social opportunities for under-represented groups, leveraging Public Services and Procurement Canada’s Policy on Social Procurement
- As government Information Technology (IT) service delivery is modernized, the Government of Canada (GC) is making procurement more agile, collaborative and inclusive to promote social values, as well as environmental sustainability
Key data points
- In fiscal year 2020 to 2021, 73% of contracts awarded by SSC went to small and medium enterprises
- During 2021, 2.5% (value) / 7.0% (volume) of SSC-funded contracts were awarded to Indigenous businesses. Dollar value: $44,747,608
Background
Shared Services Canada is striving to establish an exemplary model for IT procurements and service delivery to drive fair and inclusive business practices in Canada. SSC seeks to level the playing field for small and medium enterprises and vendors operating across Canada, including in rural and remote communities. SSC’s practices broaden participation in IT service design and delivery. SSC is actively working on initiatives to increase the diversity of bidders, in particular businesses owned or led by Canadians from under-represented groups, such as Indigenous Peoples and persons with disabilities. SCC is taking measures to increase the accessibility of the procurements to such groups, by considering, for example, the possibility of voluntary self-identification.
Indigenous businesses are under-represented in federal procurements. To advance reconciliation and improve socio-economic outcomes for Indigenous Peoples, the Government of Canada has committed to award at least 5% of federal contracts to Indigenous businesses.
Accessible information communications technology procurement
The GC envisions a public service that is a world leader in barrier-free, inclusive workplaces and services. To achieve this objective, all new major information communications technology (ICT) systems launched as of 2021 must meet accessibility requirements.
SSC is a leader in ICT accessibility and is piloting the adoption of accessibility requirements for IT products and services. The department developed an accessible procurement toolkit and training to support it, as well as the wider GC.SSC ensures that targeted accessibility requirements are included in enterprise IT procurements, and is incorporating accessibility EN301 549 standards across ICT procurement vehicles.
SSC is leading scale up, a social procurement pilot which simplifies the bidding process. The objective is to increase access to SSC procurements for micro and small enterprises, though not medium, which include Indigenous and under-represented groups, and give a better chance to suppliers who have never dealt with the GC.
In 2019, SSC established the Centre of Expertise in Agile and Innovative Procurement, which is deploying pathfinder agile procurement processes to support simplification, efficiency, competition, openness, transparency, and produce better results. SSC has also piloted an Agile Procurement Framework (APP 3.0) that systematically includes mechanisms to increase access to SSC procurements for SMEs. The procurement processes are at various stages of completion. So far, 16 agile contracts have been awarded; 83% of those were awarded to SMEs, either as a single entity or as part of a joint venture.
APP 3.0 is a contracting framework that leverages the following:
- scrum applied to procurement
- integration of end-user perspectives
- solicitation that could react to changes and evolving and scalable contracts
- integration of the private sector
- demonstrations, proof of concept and prototypes leveraging open business intelligence platforms, such as “TECH2GOV” digital marketplace, to attract hundreds of Canadian SMEs to participate in agile procurements
The SSC Procurement Modernization—Strategic Engagement Committee provides a forum for industry associations, experts, and SSC representatives to propose, analyse and recommend means to improve and modernize procurement practices, including measures that promote the participation of SMEs. Membership includes:
- TECHNATION: a membership-driven national industry association that represents the IT industry
- Canadian Information Technology Providers Association (CITPA): an affiliation of Canadian-owned vendor authorized solution providers that deliver IT solutions to the GC
- Canadian Business Information Technology Network (CABiNET): a member driven industry association for small and medium enterprises on federal government procurement initiatives. It is an association that consists of companies that provide IT resources and solutions to the GC
- Council of Canadian Innovators (CCI): non-profit organization focused on helping high growth Canadian technology firms to scale up globally. The council’s mandate is to optimize the growth of Canada’s innovation-based sector by ensuring Canadian technology and public policy leaders are working together to improve Canada’s innovation outputs
- Canadian Black Chamber of Commerce (CBCC): non-profit organization established as an initiative of the National African Canadian Association (NACA) to enhance commerce and economic development within the Black community. The CBCC platform promotes black business and creates a supportive network for its members and the Black diaspora in Canada
- Canadian Gay Lesbian Bisexual and Transgender plus (LGBT+) Chamber of Commerce (CGLCC): non-profit organization that works to foster economic growth by supporting and nurturing LGBT+ businesses, entrepreneurs, students, and allies by helping Canada’s corporate world connect with the LGBT+ community. CGLCC is a leader in supplier diversity and is the certifying body in Canada for LGBT+ businesses
- Canadian Aboriginal Minority Supplier Council (CAMSC): a nationally respected non-profit organization that advocates business relationships and economic growth of the Canadian supply chain through the inclusion of Aboriginals and minority suppliers
- Women Business Enterprises Canada (WBE): a non-profit organization, led by corporate members that aims to open doors for Canadian women-owned businesses to supply chains across North America. WBE's mandate is to build connections between Canadian women-owned businesses and corporate/government buyers across North America
Increasing Indigenous involvement in procurement
Key messages
- Increasing the participation of Indigenous businesses in federal procurement is an important part of my mandate and the government’s agenda to generate economic opportunities for Indigenous people
- We continue to work with Indigenous Services Canada and the Treasury Board of Canada Secretariat to have at least 5% of the value of federal contracts awarded to Indigenous businesses
- On April 25, 2022, the Treasury Board of Canada Secretariat in collaboration with PSPC and Indigenous Services Canada, implemented the policy and reporting framework for the mandatory minimum target of 5%
- The Treasury Board (TB) Mandatory Procedures for Contracts Awarded to Indigenous Businesses were published as part of the Directive on the Management of Procurement along with a guidance document to assist departments with implementation on this important target
- As we move forward, my department will continue working with other stakeholders to increase the participation of Indigenous businesses in federal procurement as it relates to our COVID-19 response efforts
- Where possible, COVID-19 procurements have been directed to Indigenous suppliers, so for example, contracts include logistics and air charter services, accommodation and cleaning services, IT professional services, medical and laboratory supplies, masks, hand sanitizer and thermometers
- PSPC will continue to support departments and agencies in implementing strategies to increase the participation of Indigenous businesses in federal contracting
- While procuring goods and services on behalf of federal departments and agencies, PSPC continues its efforts towards advancing reconciliation and achieving the best value for Canadians
- One of those efforts is to better engage with local communities by translating documents into various local Indigenous languages
- for example, applicable procurement documents posted on the Inuit Firm Registry in Nunavut will be translated to encourage and increase the number of Government of Canada contracting and leasing opportunities for which they may be eligible
- another example occurred less than a year ago when Public Services and Procurement Canada (PSPC) translated the press release and social media content for the Canadian High Arctic Research Station contract award in Nunavut (Inuktitut and Inuinnaqtun) to better communicate with the local Indigenous community
Key data points
- From March 2020 to March 2022, Public Services and Procurement Canada, as a common service provider, has awarded $1.3 billion through 1,744 contracts to Indigenous suppliers
- As of March 24, 2022, 41 pandemic response contracts were awarded to self-identified Indigenous businesses, contracts collectively worth more than $197 million
- For example, Public Services and Procurement Canada signed contracts with 7 Indigenous firms worth approximately $6 million for a total of 35 million non-medical disposable masks
Background
PSPC is working with Indigenous groups to increase their participation in federal procurement more broadly. This includes ongoing work with the Indigenous Business COVID-19 Taskforce, which brings together numerous Indigenous groups, including the Canadian Council for Aboriginal Business (CCAB), National Aboriginal Capital Corporation Association (NACCA), Inuit Tapiriit Kanatami (ITK) and Pauktuutit Inuit Women of Canada. The taskforce seeks to identify and mobilize Indigenous businesses to provide medical equipment and supplies, including by creating a database of Indigenous businesses. Indigenous Services Canada (ISC) is the lead department federally, with PSPC supporting the taskforce’s work. PSPC is leveraging this database to increase the participation of Indigenous businesses in federal procurement.
PSPC also works in collaboration with the Council for the Advancement of Native Development Officers (CANDO), a national Indigenous organization involved in community economic development. The partnership is focused on helping the council and its economic development officers support Indigenous businesses across Canada by providing information, focused access, and services from Procurement Assistance Canada.
Furthermore, the Minister’s Supplier Advisory Committee contributes to understanding and addressing barriers that smaller businesses face in federal procurement, including those faced by Indigenous-owned businesses. The Canadian Aboriginal and Minority Suppliers Council (CAMSC), represented by its President Cassandra Dorrington, has been an active and contributing member since the Supplier Advisory Committee’s first meeting in 2013.
Diversity and inclusion in procurement
Key messages
- Earlier this year, we launched the Supplier Diversity Action Plan which outlines concrete steps to increase the participation of businesses from underrepresented groups in federal procurement
- It includes a Policy on Social Procurement, allowing the department to create targeted approaches to increase supplier diversity in procurement, and bring positive benefits to communities across Canada
- It also includes enhanced services, delivered through Procurement Assistance Canada, to help underrepresented groups successfully participate in federal procurement
Key data points
- January 2021, PSPC launched the Black businesses procurement pilot
- May 2021, Policy on Social Procurement came into effect
- Spring 2022, PSPC will engage with industry and equity-deserving groups to co-develop the program on social procurement and the Black entrepreneurship procurement program
- July 1, 2022, PSPC will begin to launch concrete actions to begin program implementation
Background
PSPC has been working to address inequities since 2018, by modernizing its procurement practices and encouraging suppliers from diverse backgrounds to be a part of the federal supply chain. This included a 2-year socio-economic procurement experimentation cycle, from 2018 to 2020, which aimed to leverage the government’s significant purchasing power to pursue socio-economic outcomes through procurement. The department also undertook a Black businesses procurement pilot in 2021 to expand procurement opportunities for Black entrepreneurs.
Budget 2021 and the 2021 mandate letter reconfirmed the government’s commitment to social procurement, including supplier diversity, to support procurement opportunities for specific communities.
PSPC’s Policy on Social Procurement came into effect in May 2021, which allows the department to create targeted approaches to increase diversity and inclusion in PSPC procurement and leverage trade agreements that permit socio-economic procurement. More specifically, the policy will facilitate the inclusion of socio-economic measures in PSPC procurement to support the goal of achieving best value for the Crown and, in turn, for Canadians. A program on social procurement outlining how the policy will be implemented and applied is currently under development.
PSPC also recently released 2 requests for information to better understand the procurement experience of businesses owned or led by persons with disabilities and the LGBTQ2+ community.
Moving forward, a common federal approach to the definition and certification of underrepresented groups will be essential to mitigate the risk of fraud and ensure that contracts related to social procurement initiatives are awarded to the targeted groups. This will require collaboration across federal organizations. PSPC currently uses self-attestation to certify suppliers, however some stakeholders have been advocating for third-party certification.
In spring 2022, PSPC will be engaging with industry, including equity-deserving groups, to co-develop the program on social procurement and the Black entrepreneurship procurement program. PSPC will also seek their views on the best approach to definitions and certifications.
Through these engagements, PSPC will work towards the launch of concrete actions for program implementation on July 1, 2022. This will include guidance and tools for the procurement community to begin implementing a program on social procurement.