Indigenous Considerations

Indigenous Considerations is the term Canadian federal procurement organizations use for the policies, treaty obligations and contractual measures that increase opportunities and benefits for Indigenous businesses and communities. It covers the Procurement Strategy for Indigenous Business (PSIB), procurement obligations under modern treaties and Comprehensive Land Claims Agreements (CLCAs), and Indigenous Participation Plans (IPPs).

The Canada School of Public Service describes Indigenous Considerations in Procurement as the federal procurement policies, obligations and considerations that can increase opportunities for Indigenous businesses in Canada. Public Services and Procurement Canada (PSPC), National Defence and the Correctional Service of Canada all apply the term in their buying activity.

PSIB set-asides and who can bid

The Procurement Strategy for Indigenous Business is the general policy tool. When a requirement is designated as a set-aside under PSIB, only qualified Indigenous businesses can compete for it. Other applicable procurement policies and procedures continue to apply, so a set-aside does not replace the usual rules for the buy. CanadaBuys explains the strategy on its Procurement Strategy for Indigenous Business page.

Modern treaty and CLCA procurement obligations

A separate set of obligations comes from modern treaties, also called Comprehensive Land Claims Agreements. CanadaBuys states that 25 of these agreements have received Royal Assent and that 22 contain economic measures with procurement obligations. What a buyer must do depends on the treaty. The obligations can include:

• notifying claimant groups of upcoming procurements
• using beneficiary business directories
• dividing requirements into commodity or geographic groupings
• applying beneficiary-focused evaluation criteria where practical
• providing a right of first refusal for certain procurements

During procurement planning, the buyer must determine whether modern-treaty or CLCA obligations apply, assess their effect on the procurement strategy and document the measures taken in the procurement file. The details are on the CanadaBuys CLCA page.

How National Defence applies Indigenous Considerations

National Defence treats Indigenous considerations as a broad category. It includes consultation and relationships with Indigenous partners, compliance with treaty obligations, alignment with the United Nations Declaration on the Rights of Indigenous Peoples and the Inuit Nunangat Policy, and opportunities for Indigenous businesses. The department also aims for a minimum five-percent Indigenous participation target in applicable procurement activities, as set out in its 2024-25 Departmental Plan.

Indigenous Participation Plans are the contractual route when a direct award to an Indigenous business may not be possible. National Defence describes them as contractual obligations that create socioeconomic benefits for Indigenous businesses and communities. In the cited material, the IPP requirement is at least five percent of the total contract price and stays in place for the duration of the contract. See the National Defence disclosure on Indigenous procurement.

A 2024 CF-18 sustainment contract shows the approach in practice. National Defence included Indigenous Procurement Considerations that required the supplier to subcontract part of the work to businesses managed or led by Indigenous Peoples, according to the National Defence announcement.

There is one stated exception. The federal five-percent requirement does not apply to the Foreign Fighter Capability Project procurement. That procurement runs through government-to-government arrangements and Foreign Military Sales cases, and it is not subject to the set-aside program for Indigenous business, according to the National Defence procurement disclosure.

Correctional Service of Canada contracting rules

The Correctional Service of Canada writes the obligations into its contracting directive. Commissioner's Directive 350-3 requires officers to apply applicable CLCA procurement obligations when final delivery of goods, construction services or other services occurs in a covered settlement area. Officers must also document their decisions to set aside, or not to set aside, a procurement for Indigenous businesses under PSIB.

What Indigenous Considerations mean for a supplier

Suppliers should read each solicitation for a PSIB set-aside designation, because a designated requirement is open only to qualified Indigenous businesses. For work delivered in a covered settlement area, expect treaty-specific measures such as notification, beneficiary-focused evaluation criteria or a right of first refusal. On National Defence contracts, an IPP or subcontracting requirement becomes a binding contract obligation that runs for the life of the contract, so bid teams should plan Indigenous partners and subcontract value into the proposal from the start.