Joint Indigenous and Non-Indigenous (JINI) Venture

You might hear vendors or consultants talk about JINI ventures as a path to Indigenous procurement set-asides, but here's the thing: this isn't actually a defined structure in Canada's federal procurement framework. The term doesn't appear in the Government of Canada Supply Manual, and you won't find JINI-specific provisions in the Procurement Strategy for Indigenous Business (PSIB). What people are usually describing is a standard joint venture between an Indigenous business and a non-Indigenous firm, hoping it qualifies for set-asides.

How It Works

When vendors propose a joint venture for PSIB set-asides, they're betting the partnership will meet Indigenous business eligibility criteria. The Indigenous partner needs to hold at least 51% ownership, maintain actual control over business decisions, and receive the majority of economic benefits from the contract. But there's no special "JINI" designation that makes this automatic.

The challenge? Joint ventures in Canadian federal procurement are primarily addressed in tax regulations—specifically the Joint Venture (GST/HST) Regulations (SOR-91-36)—which deal with how these partnerships handle GST/HST, not whether they qualify for Indigenous set-asides. PSPC and other departments evaluate each partnership individually against Indigenous business criteria, looking at ownership documents, governance structures, and benefit-sharing agreements to determine if this truly represents an Indigenous business or just a non-Indigenous company using a minority partner for access.

In practice, procurement officers scrutinize these arrangements carefully. You'll need to demonstrate real Indigenous control, not just nominal ownership. That means decision-making authority, active management involvement, and transparent financial arrangements showing the Indigenous partner receives proportional or greater benefits. Treasury Board policy focuses on substance over form.

Key Considerations

• No automatic qualification: Forming a joint venture with an Indigenous partner doesn't guarantee access to PSIB set-asides. Each arrangement gets evaluated on its merits, and structures designed purely for access often get rejected.

• Documentation requirements are extensive: Expect to provide partnership agreements, ownership certificates, governance documents, and detailed financial arrangements showing how benefits flow to the Indigenous partner. Vague or boilerplate agreements raise red flags.

• Different departments may interpret differently: While PSPC sets overall policy, entities like DND, SSC, and other departments conduct their own evaluations. What passes muster with one contracting authority might not with another.

• Long-term relationship matters: One-off partnerships created specifically for a single bid face more scrutiny than established relationships with demonstrated history and shared operations.

Related Terms

See also: Procurement Strategy for Indigenous Business (PSIB), Indigenous Business, Joint Ventures

Sources

• Government of Canada Supply Manual - Federal procurement policies and procedures

• Joint Venture (GST/HST) Regulations, SOR-91-36 - Tax treatment of joint ventures

If you're considering this structure, work with your Indigenous partner to build something genuine that demonstrates real control and benefit-sharing. Procurement officers have seen every angle, and transparent partnerships always fare better than clever structures.