Diversity and inclusion in procurement: Standing Committee on Government Operations and Estimates—November 24, 2022

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Increasing Indigenous involvement in procurement

Context

Public Services and Procurement Canada (PSPC) is actively working to increase the participation of Indigenous businesses in federal procurement.

Suggested response

If pressed on the 5% commitment:

If pressed on barriers to Indigenous participation in procurements:

Background

PSPC is working with Indigenous peoples and businesses to increase their participation in federal procurement more broadly. This is part of the Government of Canada’s commitment to reconciliation with Indigenous people and to fulfilling Canada’s obligations to modern treaties and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).

The 2022 National Indigenous Economic Strategy estimates that boosting Indigenous participation in Canada’s economy could add $30 billion to Canada’s gross domestic product (GDP) and create 135,000 new jobs. Through these initiatives, PSPC aims to leverage federal procurement to improve the socio-economic conditions of Indigenous communities across Canada while strengthening the government’s procurement supply chains.

To achieve the 5% target, PSPC is supporting the implementation of mechanisms to limit bidding for only Indigenous businesses certified through the Indigenous Business Directory (IBD) or modern treaty area businesses. All Indigenous suppliers that are 51% owned and controlled by Indigenous persons are encouraged to register in the IBD to be eligible for this initiative. PSPC is developing new tools to support the procurement community and client departments and will continue to engage with Indigenous partners.

To generate progress on achieving its target, PSPC has adapted how it solicits and uses procurement tools to increase Indigenous participation, employing such strategies as:

The use of these strategies is increasing the opportunity for Indigenous firms to obtain contracts for various types of services.

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

Context

Public Services and Procurement Canada is delivering on the Government of Canada’s commitments to increase the diversity of bidders on government contracts.

Suggested response

If pressed on next steps:

If pressed on supporting Black businesses:

If pressed about data collection on supplier diversity in procurement:

If pressed about the definition and certification of underrepresented suppliers:

If pressed about Public Services and Procurement Canada’s response to 2018 Standing Committee on Government Operations and Estimates’ report on social procurement and the implementation of its recommendations:

Background

Public Services and Procurement Canada 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 business procurement pilot in 2021 to expand procurement opportunities for Black entrepreneurs.

In June 2018, the Standing Committee on Government Operations and Estimates (OGGO) released the report modernizing federal procurement for small and medium enterprises, women-owned and indigenous businesses. The report contained 40 recommendations, with 13 specifically aimed toward smaller businesses, Indigenous and women-led and woman-owned businesses, all of which are in various stages of implementation. PSPC is the lead on 5 recommendations and supporting the completion of 8 of these recommendations in collaboration with other government departments. On October 6, 2022, the committee asked officials how many of these recommendations have been implemented. PSPC provided an update in writing addressing its progress for each recommendation and noting that it has met its obligations in the implementation of 6 recommendations and that work was underway for the other 7 recommendations.

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 dedicated opportunities to increase diversity and inclusion in PSPC procurements. 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. In addition, a supplier diversity program outlining how the policy will be implemented and applied is currently under development.

PSPC also released 3 requests for information to understand better the procurement experience of businesses owned or led by persons with disabilities and members from the Black and lesbian, gay, bisexual, transgender, queer, 2-spirit and others (LGBTQ2+) communities.

Moving forward, a common federal approach to the definition and certification of underrepresented suppliers will be essential to mitigate the risk of fraud and ensure that contracts related to supplier diversity initiatives are awarded to the targeted groups. This will require collaboration across federal organizations. PSPC currently uses self-attestation to certify suppliers, including for Indigenous procurement; however, some stakeholders have been advocating for third-party certification.

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