Indigenous procurement in Canada for IT firms

Indigenous procurement is a growing part of public buying in Canada, at federal, provincial and municipal levels. For tech firms, it matters both for Indigenous-owned businesses and for firms that want to partner with them.

The federal approach

• The 5% target. The federal government has set a target for at least 5% of the total value of federal contracts to go to Indigenous businesses, and departments report on their progress.
• Procurement Strategy for Indigenous Business (PSIB). Lets departments set aside contracts for Indigenous businesses to compete for, either voluntarily or where required, and supports Indigenous participation in other contracts.
• Indigenous Business Directory. Indigenous businesses must be registered here to bid on PSIB set-asides. Eligibility rules on Indigenous ownership and control apply; check the current criteria with Indigenous Services Canada.
• Modern treaties and comprehensive land claims can create specific procurement obligations in certain regions.

How it shows up in IT tenders

• Set-aside tenders, where only registered Indigenous businesses can bid.
• Indigenous participation requirements or plans, where bidders commit to Indigenous employment, training or subcontracting.
• Evaluation credit for Indigenous participation as part of the scored criteria.

Provinces, territories and cities

Several provinces, territories and municipalities have their own Indigenous procurement policies, such as preferences in the territories and Indigenous participation goals in some provinces and cities. Check each buyer's policy.

For Indigenous-owned tech firms

1. Register in the Indigenous Business Directory, if eligible.
2. Watch CanadaBuys for PSIB set-asides in IT categories.
3. Get on the federal supply arrangements that departments use for IT, where set-aside call-ups can happen.
4. Connect with Indigenous business organizations and procurement networks.

For other firms

Genuine partnerships with Indigenous tech firms can strengthen bids that reward Indigenous participation. They need to be real: meaningful work share, capacity building and fair terms. Buyers and communities can tell the difference, and some policies have rules to prevent "front" businesses. See teaming agreements and joint bids.

Common questions

What is the 5% Indigenous procurement target?

It's the federal government's commitment that at least 5% of the total value of its contracts should go to Indigenous businesses.

How do I register as an Indigenous business for federal contracts?

Through the Indigenous Business Directory, run by Indigenous Services Canada. Registration is needed to bid on set-asides under the Procurement Strategy for Indigenous Business.

Can a non-Indigenous firm bid on an Indigenous set-aside?

Not as the bidder. Set-asides are for registered Indigenous businesses, though joint ventures and partnerships can qualify if they meet the ownership and control rules.