The Procurement Strategy for Aboriginal Business

1. Presented by: The Procurement Strategy for Aboriginal Business Dolores Coelho Sr. Program Officer Aboriginal Procurement and Business Promotion Directorate (APBP) Aboriginal Affairs & Northern Development Canada (AANDC) Aboriginal Entrepreneurs Conference 2011 Ottawa, Ontario

2. Overview Procurement Strategy for Aboriginal Business Policy (PSAB) Launched in 1996 to assist and support Aboriginal businesses to pursue and win federal procurement opportunities. A key element of the Federal Framework for Aboriginal Economic Development Places responsibility on Federal departments and agencies who are responsible to conduct contracting activities with Aboriginal businesses on behalf of the Government of Canada Federal government contracts approximately $20B goods and services annually AANDC coordinates the implementation of PSAB on behalf of the federal government In close collaboration with PWGSC and TBS 2

3. How PSAB Works 4 Main elements of PSAB 1. Mandatory Set Asides: Set Asides are mandatory if: An area, community or group in which Aboriginal people make up at least 80% of the population The Aboriginal population will be the recipient of the good, service or construction And the value of the contract is over $5000 2. Voluntary Set asides: - Employed if: Aboriginal capacity exists The client department voluntarily decides to apply the PSAB set aside where operational requirements, best value prudence and probity and sound contracting management can be assured Departments are responsible for setting their own PSAB targets Reporting is done on an annual basis 3

4. How PSAB Works… 4 Main elements of PSAB 3. Collaboration agreements and partnerships: Allows Aboriginal and non Aboriginal partnerships to bid on opportunities that have been set aside 4. Use of Aboriginal criteria: In awarding of prime contracts, departments are encouraged to: Request Aboriginal sub contracting plans either as a mandatory requirement or a rated evaluation criteria Can be applied only if International Trade Agreements are exempt 4

5. How PSAB Works… An Aboriginal business may be: a sole proprietorship, limited company, cooperative, partnership, or not-for-profit organization in which Aboriginal persons have majority ownership and control meaning at least 51 percent, and In the case of a business enterprise with six or more fulltime employees, at least 33 percent of the full-time employees are Aboriginal persons, -OR- A collaboration agreement in which an Aboriginal business or Aboriginal businesses as defined above have at least 51 percent ownership and control. 5

6. PSAB Tools • Tools and Approaches • Database with registered Aboriginal businesses demonstrating Aboriginal capacity; • Outreach and training activities with Businesses, Federal, Provincial and Territorial Governments – approx 65 per year; • Work closely with businesses and stakeholders to undertake Aboriginal supplier development activities; • Lead a national interdepartmental PSAB Coordinator Network to help apply and support the policy; and • Facilitate and intervene in the application of set-asides of government procurement for Aboriginal businesses. • Ensuring Effectiveness • Collect and analyse annually, qualitative and quantitative data from procuring Departments; • Monitor and track the Merx to determine the number of set-asides. 6

7. PSAB Tools… • Role in advising federal departments, provincial/territorial governments and businesses in: • Input in the procurement phase of projects by providing Aboriginal business capacity to federal departments and agencies; • Advise on the application of International Trade Agreements as they apply to PSAB (i.e. WTO-Agreement on Government Procurement, NAFTA, AIT and any future Free Trade Agreements); • Review proposed procurement strategies on Major Crown Projects (projects with a value over $100M) and participation on the Senior Project Advisory Committee;

8. PSAB Tools… • Review notifications in order to negotiate Aboriginal Set Aside opportunities under the Procurement Review Committee (contracts value between $2M – $100M) • Advise via joint engagement on Comprehensive Land Claim Agreements and how it may apply to PSAB

9. PSAB & the Federal Framework for Aboriginal Economic Development • PSAB is a key element of the Federal Framework for Aboriginal Economic Development’s (FFAED) strategic priority of strengthening Aboriginal entrepreneurship, and increasing Aboriginal procurement. • 2009 FFAED commitments: • Increase the number of supplier registered Aboriginal businesses • Increase in the number and total value of set-aside contracting • Increase and improve training for Aboriginal businesses and federal procurement officers • Examine feasibility of Aboriginal Benefit Requirement (ABR) • Strengthen capacity of entrepreneurs to succeed in winning contracts • Create better links between government and private sector that will support access to procurement opportunities

10. PSAB Success Federal Partners Interdepartmental Letter of Agreement (ILA) with Office of Small and Medium Enterprise (OSME) through PWGSC for outreach activities; ILA with Industry Canada for shared Aboriginal Business database. Provincial Partners Memorandum of Understanding (MOU) with Ministry of Aboriginal Affairs (Ontario) to assist in developing a PSAB policy for the province; Worked with the Province of Manitoba to establish a PSAB policy for the province that mirrors the Federal policy. 10

11. Be Part of PSAB Success Aboriginal businesses are encouraged to register with PSAB in order to promote their business’ capacity to federal government departments and agencies. AANDC supports Aboriginal businesses promote supplier capabilities through means of various databases: Industry Canada’s Aboriginal Business Directory, and; Contracts Canada’s Supplier Registration Inventory. 11

12. contact AANDCby email to saea-psab@aadnc-aandc.gc.ca or by phone at 1-800-400-7677. Check departmental source lists. Industry Canada's Aboriginal Business Directory; and Contracts Canada's Supplier Registration Inventory Be Part of PSAB Success… 12

13. Contact The PSAB Team is pleased to answer your questions. Contact us through the PSAB Help Line at 1-800-400-7677 or by email to saea-psab@aadnc-aandc.gc.ca. The PSAB website can provide you with more information. 13