Inclusion Works ’10 Aboriginal Procurement April 27, 2010

1. Inclusion Works ’10 Aboriginal Procurement April 27, 2010

2. Welcome • Agenda • Introductions • Logistics

3. Agenda for the Day

4. Some Context • Aboriginal procurement • Challenges and Opportunities • Whose doing what – gov/business • Business development/expansion

5. Implementing an AboriginalProcurement Strategy Inclusion embraced as the cultural norm Inclusion as a catalyst for growth Inclusion nurtured as a core competency Inclusion as a business imperative Inclusion as public relations Inclusion as forced compliance Inclusion is not on the radar screen

6. Roles • goals • Strategies • Practices As we look at Aboriginal procurement we want to look at what government and big business are doing. And we want to understand Aboriginal SME’s and their efforts to access procurement opportunities

7. Opportunities? (who, what, where?) • Scale of the opportunities ? • Impediments ? • What can we do to increase Aboriginal procurement?

8. What are the most important things that need to happen in order to increase Aboriginal businesses acting on procurement opportunities?

9. The Business Context for Successful Aboriginal Procurement Strategies • From Transaction to Partnership • A partnership-based approach is significantly different than the typical transaction-based model of procurement used by many companies today. • Helping large companies adopt this approach creates more opportunities for Aboriginal suppliers.

10. 1. The Procurement Process ~ Flow Diagram Corporate Management 4. Purchasing Department Builds a Team Corporate Policy on Aboriginal Inclusion 2. 5. Analyze Current State – What is the business case for Aboriginal procurement, current business with Aboriginal suppliers, procurement profile (e.g. many small contracts that match with current Aboriginal business capacity)? 3. Develop Enterprise - Wide Inclusion Strategy

11. 6. Procurement Department decides on Aboriginal Procurement Policy, Strategic Positioning, Goals and Metrics Change Management 7. Market Analysis - Build understanding of Aboriginal business sector and communities that are Involved

12. 8.Review and Adjust Procurement Practices • Develop processes to provide for Early Identification of Opportunities in specification process • Institute processes to ensure service or product specifications consider Aboriginal business capacity • Develop supplier selection criteria that reflects the Aboriginal Policy and strategic positioning, e.g. criteria for using • set asides (direct awards, restricted tenders) • points for Aboriginal benefits (weighting) • open competitive process • Build  processes for tailored promotion of opportunities to Aboriginal business sector • Review standard contract terms and conditions for barriers and adjust or build capacity • Decide on any measures to manage and support performance, e.g. supplier capacity development  

13. Strategic & Operational Stages - Recap

14. Policy/strategy = Making the Business Case

15. Aboriginal Supplier Market Analysis Depth of knowledge of Aboriginal business sector Promote Procurement Opportunity Degree of outreach Strategic Positioning Supplier Relationship Management Extent of the Supplier Capacity – Community Development Initiatives Supplier Selection /Bid Evaluation Degree of preference (affirmative action) Product or Service Specification Extent to which we create opportunities Contract Negotiation and Fulfilment Degree of accommodation with regard to standard T&C

16. Procurement Operational Matters – Examples of What Large Companies can Do • Identify Aboriginal Companies that meet the company’s opportunities; • Develop screening process that removes barriers & provides opportunities for Aboriginal Companies; • Establish vendor lists and prequalify Aboriginal businesses • Establish bid evaluation process that supports Aboriginal Inclusion Goals; • Ensure contract negotiation is aligned with policy; • Ensure order fulfillment QA processes are consistent with policy objectives;

17. What should Aboriginal Businesses be doing in order to access procurement opportunities? • Form sectoral or geographic based partnerships, working with other businesses in the same area or industry; • Get on the vendor lists; • Adopt a proactive sales and promotions stance; • A role for facilitators and brokers with sector specialization • Ensure that you are aware of and have acquired the training and certification standards, insurance coverage, etc, that is standard in the industry

18. Top ten things Aboriginal businesses can do to access procurement opportunities – cont. • Do your research—gather all procurement guidelines in print, etc., talk to other vendors, know where to find bids, stay abreast of all government and large business procurement trends, what is that companies past procurement record, find out what projects are in the pipeline; • Network: cultivate contacts, join professional, civic and trade organizations; • Find out about companies’ long-range purchasing needs; • Consider, explore and pursue innovative partnership opportunities • Consider what subcontracting opportunities may be available • Self promote—organizations need to know you are out there and that you can meet their needs

19. Dividends and Scale – What is Aboriginal Procurement Worth? • 2904 large companies doing business with 27,000 aboriginal; • Hot sectors include retail,health care, waste management and remediation services, education services, mining and oil and gas extraction, construction, arts /entertainment and recreation; • The total value of the goods and services purchased by six key sectors in 2007 was $417 billion. With expenditures of $374 billion, the retail sector accounted for 90% of these purchases. • The Government of Canada buys approximately $14 billion worth of goods and services every year from thousands of suppliers. There are over 85 departments, agencies, Crown Corporations and Special Operating Agencies.

20. A balanced Equation • Inclusive Procurement… • Consider the business case • The link between Policy formation and practices. • Aboriginal businesses need to perform in order to get repeat business. • Supplier solutions and new business development can be tangible. Companies Purchasing Strategies & Practices Aboriginal Suppliers’ Capacity

21. Thank you