1. Ontario Public Service (OPS) Aboriginal Procurement Pilot Initiative
Métis Nation of British Columbia Roundtable
Vancouver, BC
March 6, 2015

2. Aboriginal Procurement
Government can use its significant buying power to support the growth and development of Aboriginal businesses and communities, while contributing to the narrowing of the socio-economic gap between Aboriginal and non-Aboriginal people in Ontario.
The goal of government Aboriginal procurement initiatives is to increase opportunities for Aboriginal vendors to do business with government, while also helping Aboriginal businesses develop resources, capacity and skills to participate in government procurement.
For government, Aboriginal procurement initiatives enhance partnerships between Aboriginal peoples and government, which can improve relationships and move strategic and joint economic priorities forward.
Participating in government procurement processes provides Aboriginal businesses with the experience needed to be successful in other business endeavours, including experience in developing tender documents and executing successful vendor-supplier relationships.
Aboriginal-specific procurement initiatives also:
Increase awareness of government procurement processes among Aboriginal businesses.
Increase awareness of Aboriginal businesses and the products/services they provide among government buyers.
Increase capacity of Aboriginal businesses to bid on open competitive procurement.
21/09/2018

3. Ontario’s Approach to Aboriginal Procurement
The intention to develop an Aboriginal Procurement Strategy for Ontario was announced by the Minister of Aboriginal Affairs during the 2010 Ontario First Nations Economic Forum.
An Ontario Public Service Aboriginal Procurement Strategy would contribute to the goals of the Poverty Reduction Strategy by supporting economic development and contributing to the government’s goal of reducing poverty, inequality and exclusion.
A potential Strategy would also complement other supports by Ontario related to Aboriginal business growth and development, including:
Business financing from the Aboriginal Economic Development Fund.
Business support resources such as the Aboriginal Business Development Toolkit and the Ontario Aboriginal Business Directory.
The Aboriginal Procurement Pilot Initiative was launched as a way to help inform the development of a long-term Aboriginal Procurement Strategy.
The two-year Pilot Initiative was publicly launched in March 2012.
An evaluation of the Pilot Initiative was completed in spring 2014.
21/09/2018

4. Overview of the Aboriginal Procurement Pilot
The Aboriginal Procurement Pilot introduced an allowable exception to the Ontario Public Service Procurement Directive to permit limited or non-competitive procurement for the benefit of Aboriginal people and to support Aboriginal economic development.
The Pilot focuses on encouraging the use of Aboriginal businesses when purchasing goods and services that:
Have a significant impact/benefit on Aboriginal people;
Are culturally-specific; or
Relate to an Aboriginal-specific program or policy.
Eligible Aboriginal businesses are defined as a business that is majority owned and controlled (i.e., at least 51%) by an Aboriginal person(s).
Aboriginal businesses must complete all requirements of a procurement opportunity and may not sub-contract to non-Aboriginal businesses.
Joint ventures are eligible if an Aboriginal business owns and controls at least 51% of the venture.
In the case of a joint venture, at least one-third of the work must be undertaken by an Aboriginal business.
21/09/2018

5. Aboriginal Procurement Methods
To support Aboriginal business development, government buyers are permitted to apply the following practices that encourage Aboriginal participation in government procurement:
Aboriginal Business Set-aside: A procurement opportunity or portion of a contract is ‘set-aside’ for competition among Aboriginal businesses when there is sufficient capacity within the Aboriginal business community;
Aboriginal Business Participation Requirements: A procurement opportunity with provisions that encourage a vendor to partner with, or sub-contract, an Aboriginal business through voluntary or mandatory criteria, or by allocating a portion of a procurement; and
Evaluation Criteria: Inclusion of requirements that Vendors must demonstrate specific Aboriginal experience and/or outreach to Aboriginal businesses.
21/09/2018

6. Roles & Responsibilities
While the Ministry of Aboriginal Affairs has an oversight role in implementing the Aboriginal Procurement Pilot, all ministries play a role in implementation including outreach to Aboriginal businesses and identifying eligible procurement opportunities.
Oversight:
Ministry of Aboriginal Affairs
Internal & External Outreach
Advocacy:
Ministry of Aboriginal Affairs & Partner Ministries
Reporting:
Ministry of Aboriginal Affairs
External Outreach,
Procurement Opportunities
Implementation:
All Ministries
21/09/2018

7. Internal Approach Components
Allowable Exception: The allowable exception that enables the use of Aboriginal procurement practices for limited/non-competitive procurement remains in the OPS Procurement Directive.
Aboriginal Procurement Workshops for Government Buyers: Dedicated workshops on Aboriginal procurement delivered by the Ministry of Aboriginal Affairs (MAA) and the Ministry of Government & Consumer Services (MGCS). Workshops primarily deal with when and how to apply Aboriginal procurement practices.
Aboriginal Procurement Toolkit for Government Buyers: A guide provides information for government buyers on when and how to apply Aboriginal procurement practices.
Aboriginal Business Directory: An online registry of Aboriginal owned businesses in Ontario to help government buyers identify eligible Aboriginal businesses. MAA is working to re-launch the Directory as part of Industry Canada’s Canadian Companies Capabilities (CCC) online registry.
21/09/2018

8. External Approach Components
How to Do Business Workshops: MAA works with the Ministry of Government and Consumer Services (MGCS) to deliver workshops for Aboriginal businesses, including regional and web-based sessions for businesses and communities. Workshops focus on increasing awareness of government procurement (for example, marketing to government, becoming a Vendor of Record, accessing government tenders).
Supply Ontario: Supply Ontario is a reverse tradeshow where potential vendors have an opportunity to meet with government buyers. MAA works with MGCS to promote Supply Ontario events to Aboriginal businesses.
Aboriginal Business Directory: An online registry of Aboriginal owned businesses in Ontario where businesses can market the goods/services they provide to public and private sector buyers. MAA is working to re-launch the Directory as part of Industry Canada’s Canadian Companies Capabilities (CCC) online registry.
21/09/2018

9. Lessons Learned
The pilot evaluation concluded that success factors include:
Clear guidelines and criteria for Aboriginal procurement;
Clear process for verifying the eligibility of Aboriginal businesses
Targeted outreach and training for Aboriginal businesses;
Training and supports for government buyers; and
Monitoring and mandatory reporting requirements.
Recommendations included:
A proactive role for the Ministry of Aboriginal Affairs;
Clarifying the roles and responsibilities for all levels of government;
Developing a supportive culture for Aboriginal procurement that includes stronger support from senior management;
Developing a formal internal and external communications strategy;
Establishing an advisor within each ministry or group of ministries to support Aboriginal procurement; and
Developing a performance measurement framework with targets to increase the number of opportunities and contracts awarded to Aboriginal businesses.
21/09/2018

10. THANK YOU
For more information about Ontario’s Aboriginal Procurement Pilot, contact:
John Costa, Team Lead/Policy Coordinator
Strategic Planning & Economic Policy Branch
Ministry of Aboriginal Affairs
Telephone:
21/09/2018