Indigenous Business Set-Aside

An Indigenous Business Set-Aside is a procurement restricted to qualified Indigenous businesses under the Government of Canada's Procurement Strategy for Indigenous Business (PSIB). CanadaBuys states that requirements designated by client departments as set aside under PSIB are restricted to qualified Indigenous businesses, and that all applicable procurement policies and procedures continue to apply. CanadaBuys: Procurement Strategy for Indigenous Business

A set-aside takes one of two forms. In a mandatory set-aside, only suppliers that meet PSIB's Indigenous-business requirements may compete. In a conditional set-aside, the competition can begin open to all suppliers and then become restricted to Indigenous businesses, depending on the bids received. Public Services and Procurement Canada (PSPC) uses and administers PSIB requirements through federal solicitations published on CanadaBuys.

Mandatory set-asides: restricted from the outset

When a solicitation is fully set aside, the restriction applies from the day the notice is published. A CanadaBuys tender notice for hand tools shows the pattern. It states that the procurement is set aside under PSIB and concerns National Master Standing Offers for supply on an as-and-when-requested basis. Suppliers must certify that they qualify as an Indigenous business under PSIB and that they will comply with PSIB requirements. CanadaBuys hand tools tender notice

An Indigenous Services Canada request for proposal follows the same model. It identifies the requirement as set aside under the federal PSIB and refers bidders to Annex 9.4 of the Supply Manual for the applicable requirements. Indigenous Services Canada request for proposal

Conditional set-asides: the two-bid trigger

A conditional set-aside turns on the number of compliant bids from qualified Indigenous businesses. If at least two are received, the competition is limited to Indigenous businesses. One conditional notice states that in this case the contracting authority does not consider non-Indigenous bids. Notice of proposed procurement

Another request for proposal confirms that the conditional set-aside applies when two or more Indigenous businesses submit bids. Request for proposal 2025-00290

Staged procurements add a step. In one amended solicitation, if fewer than two Indigenous suppliers qualify at the earlier stage, the procurement proceeds as a regular tender. If at least two qualify and submit bids at the next stage, the conditional PSIB set-aside applies. Amendment to solicitation 23-0069

Where set-asides appear on CanadaBuys

The designation appears in competitive requests for proposals, in construction and services requirements, and in National Master Standing Offers. Departments that have used it include Indigenous Services Canada, the Canadian Food Inspection Agency, the Royal Canadian Mounted Police and Parks Canada-related procurements. A Royal Canadian Mounted Police Depot procurement in Regina was conditionally set aside under PSIB and required the bidder to certify its Indigenous-business status and compliance. RCMP Depot award notice

Completed federal contracts can be reviewed through the Open Government contracts search.

Certification, the directory and subcontractors

Bidders must certify that they qualify as an Indigenous business under PSIB and agree to comply with its requirements. Some notices refer suppliers to the Government of Canada's Indigenous Business Directory and require an Owner/Employee Certification or an equivalent bid certification.

Subcontracting is also covered. Some solicitations require subcontractors used under the resulting contract to satisfy the applicable Indigenous-business requirements. They also require the prime contractor to provide evidence of compliance on request. Request for proposal W4938-23-101

What it means for a supplier bidding

Read the solicitation first to see whether the set-aside is mandatory or conditional. A mandatory set-aside is closed to businesses that do not qualify under PSIB. A conditional set-aside may stay open to everyone, but non-Indigenous bids are not considered once two compliant Indigenous bids are received.

Indigenous suppliers should confirm they meet the PSIB definition before bidding, complete the required certification and check the Indigenous Business Directory. Non-Indigenous suppliers considering a conditional solicitation should know that the competition may narrow after bids arrive. They can also look at partnering with qualified Indigenous businesses, provided the subcontractor requirements in the solicitation are met and the prime contractor can document compliance.