Procurement Strategy for Indigenous Businesses (PSIB)

The Procurement Strategy for Indigenous Business (PSIB) is a Government of Canada program under which certain procurement requirements are set aside and restricted to competition among qualified Indigenous businesses. The Government of Canada describes it as its program for setting aside entire contracts, or portions of contracts, for exclusive competition among Indigenous businesses. Public Services and Procurement Canada (PSPC) briefing material sets out this description.

PSIB was reformed and renamed in 2021. Before that, it was known as the Procurement Strategy for Aboriginal Business. It is a federal initiative, so the buyers that use it are federal departments and agencies. The official CanadaBuys page on PSIB explains that requirements designated by clients as set aside are restricted to qualified Indigenous businesses.

How a PSIB set-aside appears in a solicitation

A federal requirement can be identified in its notice as a “PSIB Stream Procurement” and designated as set aside under the federal PSIB. A published example is a request for proposal on CanadaBuys that uses this wording.

When a requirement is designated this way, competition is restricted to qualified Indigenous businesses. The set-aside can cover an entire contract or only portions of a contract. Set-asides do not remove other obligations: other applicable procurement policies and procedures still apply to the process.

The 5% target and reported results

The federal directive requires departments and agencies to allocate at least 5% of the total value of awarded contracts to qualified Indigenous businesses, as the Canada Revenue Agency's Indigenous strategy notes. PSIB is one of the tools federal buyers use in pursuing that target.

In 2023–24, the Government of Canada awarded more than $1.24 billion in contracts to Indigenous businesses, representing 6.1% of eligible government contracts, according to Indigenous Services Canada. Approximately 40% of that value was awarded through Indigenous-business set-aside opportunities.

Departments report their own performance against the target. Departmental records for Employment and Social Development Canada and Transport Canada show this reporting.

Who administers PSIB

PSIB is a federal Indigenous procurement initiative administered through Indigenous Services Canada, which is identified as the program department. PSPC supports it with procurement guidance, solicitation and contract clauses, and advice to contracting authorities. Federal contracting officers therefore work from PSPC tools when they build a PSIB solicitation.

PSIB and Comprehensive Land Claims Agreements

PSIB is distinct from obligations arising under Comprehensive Land Claims Agreements (CLCAs). The two should not be confused. CLCA obligations come from the agreements themselves, while PSIB is a federal set-aside program. The CanadaBuys page on PSIB draws this distinction directly.

What PSIB means for a supplier bidding on Canadian public contracts

• Only a business that qualifies as an Indigenous business under the applicable federal requirements can compete on a PSIB-designated requirement.
• Check the notice for the “PSIB Stream Procurement” label or other set-aside wording before deciding to bid.
• Submit your bid under the PSIB conditions stated in the solicitation, and keep to every other procurement rule that applies.
• Non-Indigenous suppliers cannot bid as prime contractors on set-aside requirements, so they should watch for these notices when assessing their competitive field.