A Joint Indigenous Venture lets a non-Indigenous business partner with an Indigenous company to access set-aside contracts under the Procurement Strategy for Indigenous Business. The Indigenous partner must hold at least 33% ownership and control—not just a passive stake, but real decision-making authority and active involvement in delivering the work. This structure opens doors to federal contracts that would otherwise be restricted to 100% Indigenous-owned businesses.
How It Works
The 33% threshold isn't just about equity. According to Supply Manual Chapter 10, the Indigenous partner must maintain "meaningful involvement in contract performance." That means participating in project management, contributing specialized expertise, or handling significant portions of the work—not simply collecting a share of profits while the non-Indigenous partner does everything.
To qualify for PSIB set-asides, your JIV needs to be listed in the Indigenous Business Directory. PSPC and other departments verify this during the procurement process. Once approved, you can access set-aside opportunities across federal departments—from Public Services and Procurement Canada to DND and Shared Services Canada. The PSIB framework allows sole-source contracts up to $100,000 for goods and services without additional justification, which speeds up contract awards considerably.
In practice, contracting officers scrutinize JIVs more carefully than wholly Indigenous-owned businesses. They're looking for genuine value from the Indigenous partner—whether that's local knowledge, community relationships, or technical capabilities. The partnership agreement should document roles, responsibilities, and how the Indigenous partner exercises control over business decisions. Vague arrangements where the Indigenous partner is essentially a silent investor won't pass muster.
Key Considerations
- Control means more than ownership percentage. Your Indigenous partner needs voting rights, board representation, or other mechanisms to influence major business decisions. A 33% equity stake without corresponding control rights doesn't meet PSIB requirements.
- Document meaningful involvement from day one. Contracting officers may ask for evidence during bid evaluation or contract performance. Have clear records showing how your Indigenous partner contributes to project planning, execution, and oversight.
- Directory registration takes time. Your JIV must be listed in the Indigenous Business Directory before bidding on set-asides. Start the verification process early—it's not instantaneous, and you can't bid on restricted opportunities until you're approved.
- Partnership dissolution affects eligibility. If your Indigenous partner's ownership drops below 33% or they stop participating meaningfully, you lose access to set-asides. Treasury Board contracting policy requires ongoing compliance, not just qualification at contract award.
Related Terms
Procurement Strategy for Indigenous Business (PSIB), Indigenous Business Directory, Set-Aside
Sources
- Supply Manual - Chapter 10: Procurement Strategy for Indigenous Business
- Procurement Strategy for Indigenous Business (PSIB)
- Treasury Board Policy on Government Contracts - Indigenous Procurement
The JIV structure works best when both partners view it as a genuine collaboration rather than a compliance exercise. Departments increasingly verify that Indigenous partners aren't just on paper—they're at the table.