Diversity and inclusion in procurement: Standing Committee on Government Operations and Estimates—June 10, 2022
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Increasing Indigenous involvement in procurement
Key messages
- Increasing the participation of Indigenous businesses in federal procurement is an important part of my mandate and the government’s agenda to generate economic opportunities for Indigenous people
- We continue to work with Indigenous Services Canada and the Treasury Board of Canada Secretariat to have at least 5% of the value of federal contracts awarded to Indigenous businesses
- On April 25, 2022, the Treasury Board of Canada Secretariat in collaboration with Public Services and Procurement Canada (PSPC) and Indigenous Services Canada (ISC), implemented the policy and reporting framework for the mandatory minimum target of 5%
- The Treasury Board (TB) mandatory procedures for contracts awarded to Indigenous businesses were published as part of the Directive on the Management of Procurement along with a guidance document to assist departments with implementation on this important target
- As we move forward, my department will continue working with other stakeholders to increase the participation of Indigenous businesses in federal procurement as it relates to our COVID-19 response efforts
- Where possible, COVID-19 procurements have been directed to Indigenous suppliers, so for example, contracts include logistics and air charter services, accommodation and cleaning services, information technology (IT) professional services, medical and laboratory supplies, masks, hand sanitizer and thermometers
- PSPC will continue to support departments and agencies in implementing strategies to increase the participation of Indigenous businesses in federal contracting
- While procuring goods and services on behalf of federal departments and agencies, PSPC continues its efforts towards advancing reconciliation and achieving the best value for Canadians
- One of those efforts is to better engage with local communities by translating documents into various local Indigenous languagesd:
- for example, applicable procurement documents posted on the Inuit Firm Registry in Nunavut will be translated to encourage and increase the number of Government of Canada contracting and leasing opportunities for which they may be eligible
- another example occurred less than a year ago when PSPC translated the press release and social media content for the Canadian High Arctic Research Station contract award in Nunavut (Inuktitut and Inuinnaqtun) to better communicate with the local Indigenous community
Key data points
- From March 2020 to March 2022, Public Services and Procurement Canada, as a common service provider, has awarded $1.3 billion through 1,744 contracts to Indigenous suppliers
- As of March 24, 2022, 41 pandemic response contracts were awarded to self-identified Indigenous businesses, contracts collectively worth more than $197 million
- For example, Public Services and Procurement Canada signed contracts with 7 Indigenous firms worth approximately $6 million for a total of 35 million non-medical disposable masks
Shared Services Canada (SSC) Indigenous Procurement:
- during 2021, 2.5% (value) / 7.0% (volume) of SSC-funded contracts were awarded to Indigenous businesses. Dollar value: $44,747,608
Background
PSPC is working with Indigenous groups to increase their participation in federal procurement more broadly. This includes ongoing work with the Indigenous Business COVID-19 Taskforce, which brings together numerous Indigenous groups, including the Canadian Council for Aboriginal Business (CCAB), National Aboriginal Capital Corporation Association (NACCA), Inuit Tapiriit Kanatami (ITK) and Pauktuutit Inuit Women of Canada. The taskforce seeks to identify and mobilize Indigenous businesses to provide medical equipment and supplies, including by creating a database of Indigenous businesses. Indigenous Services Canada is the lead department federally, with PSPC supporting the taskforce’s work. PSPC is leveraging this database to increase the participation of Indigenous businesses in federal procurement.
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.
Overview of diversity and inclusion in procurement
Key messages
- Earlier this year, we launched the Supplier Diversity Action Plan which outlines concrete steps to increase the participation of businesses from equity-deserving groups in federal procurement
- It includes a Policy on Social Procurement, allowing the department to create targeted approaches to increase supplier diversity in procurement, and bring positive benefits to communities across Canada
- It also includes enhanced services, delivered through Procurement Assistance Canada, to help equity-deserving groups successfully participate in federal procurement
Key data points
- January 2021, Public Services and Procurement Canada launched the Black businesses procurement pilot
- May 2021, Policy on Social Procurement came into effect
- Spring 2022, PSPC will engage with industry and equity-deserving groups to co-develop the program on social procurement and the Black entrepreneurship procurement program
- July 1, 2022, PSPC will begin to launch concrete actions to implement the supplier diversitp Program
SSC increasing diversity of suppliers:
- in fiscal year 2020 to 2021, 73% of contracts awarded by Shared Services Canada went to small and medium enterprises. It is anticipated that fiscal year 2021 to 2022 results will be similar
Background
PSPC 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 businesses procurement pilot in 2021 to expand procurement opportunities for Black entrepreneurs.
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 targeted approaches to increase diversity and inclusion in PSPC procurement and leverage trade agreements that permit socio-economic procurement. More specifically, the policy facilitates 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. A supplier diversity program outlining how the policy will be implemented and applied is currently under development.
PSPC also recently completed 2 requests for information to better understand the procurement experience of businesses owned or led by persons with disabilities and the lesbian, gay, bisexual, transgender, queer, 2-spirit and others (LGBTQ2+) community.
Moving forward, a common federal approach to the definition and certification of equity‑deserving groups will be essential to ensure that contracts related to social procurement initiatives are awarded to the targeted groups. This will require collaboration across federal organizations. PSPC currently uses self-attestation to certify suppliers, however, some stakeholders have been advocating for third-party certification.
Throughout spring 2022, PSPC engaged with industry, including equity-deserving groups, to co-develop the supplier diversity program and the Black entrepreneurship procurement program. PSPC also sought their views on the best approach to definitions and certifications.
Through these engagements, PSPC will work towards the launch of concrete actions for program implementation on July 1, 2022. This will include guidance and tools for the procurement community to begin implementing a supplier diversity program.
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