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Procurement Strategy for Aboriginal Business: An Overview
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  1. Procurement Strategy for Aboriginal Business:An Overview Nunavut Trade Show & Conference: May 10, 2005

  2. Background • The PSAB is a strategy launched by the federal government to increase the number of Aboriginal suppliers bidding for, and winning, federal contracts. • This is achieved in a variety of ways - certain contracts are being set aside for competition among Aboriginal businesses. • The strategy promotes sub-contracting to Aboriginal firms and encourages Aboriginal firms to form joint ventures with other Aboriginal and non-Aboriginal businesses

  3. Eligibility • The PSAB is open to all Aboriginal businesses, incorporated or not - sole proprietorship, limited company, co-operative, partnership, or not-for-profit organization. • Aboriginal business means : • (1) At least 51 percent of the firm is owned and controlled by Aboriginal people, and, • (2) At least one third of the firm's employees, if it has six or more full-time staff, are Aboriginal. • If a a joint venture or consortium, at least 51 percent of the joint venture or consortium must be controlled and owned by an Aboriginal business or businesses

  4. Certification of PSAB criteria • When a firm bids for a contract under the PSAB, it must complete and sign the form entitled "Certification Requirements for the Set-Aside Program for Aboriginal Business." An Aboriginal bidder must provide proof of eligibility upon request. Indian and Northern Affairs Canada (INAC) audits Aboriginal supplier certifications on a regular basis.

  5. How does the Government of Canada find suppliers? • As a general rule, the federal government uses MERX to advertise the following opportunities: • goods, services and selected science requirements valued at $25,000 or more; • construction valued at $60,000 or more; • printing valued at $10,000 or more; • communication services with a value of $50,000 or more; • advertise in newspapers; and • refer to their source lists. • Federal departments or agencies refer to Aboriginal business directories, in Contracts Canada's Supplier Registration Information (SRI) and Industry Canada's, Strategis, Aboriginal Business Directory,

  6. Communications/Marketing • It is recommended that Aboriginal suppliers register with Contracts Canada's (SRI) and Industry Canada's, Strategis, Aboriginal Business Directory, either on-line or by contacting the 1-800 numbers. If already registered ensure information up to date. • contact the nearest Public Works and Government Services (PWGSC) office to describe the goods and services provided, indicating PSAB qualification. PWGSC maintains supplier source lists for provision of goods and services under $25,000 as well as lists for low-dollar value purchases in some other areas. • promoting one-on-one basis to representatives of departments and agencies that may require products or services.

  7. What are PSAB set-asides? Under the PSAB the Government of Canada is reserving, or "setting aside", certain contracts exclusively for competition among Aboriginal businesses. There are two kinds of PSAB set-asides: mandatory and voluntary. • A mandatory set-aside policy applies to all contracts that serve a primarily Aboriginal population (i.e., at least 80 percent) and that are worth more than $5,000. • Voluntary set-asides may be applied to other contracts by federal buyers whenever practical

  8. How do PSAB set-asides work? • When a contract is reserved for Aboriginal competition, the department or agency indicates in its advertisement or request for proposal that the requirement is set aside for Aboriginal suppliers in accordance with the PSAB. • Bids are prepared and submitted by Aboriginal businesses, and are evaluated in keeping with the principles of federal government contracting: fairness, openness and best value for the Canadian public .

  9. Who does the PSAB apply to? • The PSAB applies to all federal government departments and agencies. Federal Crown Corporations are encouraged to adopt similar measures to increase the amount of contracting they do with Aboriginal business

  10. A primer for Federal Government Procurement • A CD and a workbook have been produced to assist businesses to secure work with the Federal Government • Workshops are also provided from time to time. • MERX site is www.merx.cebra.com • PSAB site is www.psab.inac.gc.ca

  11. PSAB Co-ordinator for Nunavut Cheri Kemp-Kinnear Regional Economic Development Advisor Indian & Northern Affairs Canada, Nunavut Regional Office E-mail: kempkinnear@inac.gc.ca Phone: 867-975-4582 Fax: 867-975-4560