The Procurement Strategy for Aboriginal Business

Transcription

1 The Procurement Strategy for Aboriginal Business Presented by: Leah Penz Program Officer Aboriginal Procurement and Business Promotion Directorate Aboriginal Affairs & Northern Development Canada (AANDC) 1

2 Overview Procurement Strategy for Aboriginal Business Policy (PSAB) Launched in 1996 to assist and support Aboriginal businesses to pursue and win federal procurement opportunities. A key element of the Federal Framework for Aboriginal Economic Development Places responsibility on Federal departments and agencies who are responsible to conduct contracting activities with Aboriginal businesses on behalf of the Government of Canada Federal government contracts approximately $20B goods and services annually AANDC coordinates the implementation of PSAB on behalf of the federal government In close collaboration with PWGSC and TBS 2

3 Overview Committed to working with Canada s rapidly growing Aboriginal business sector: There are over Aboriginal-owned businesses across Canada covering a variety of economic sectors, that are well established in construction (18%), primary sectors (13%), and service-based industries (28%) The 2006 census revealed an increase of 38 % since 2001 of Aboriginal Business owners this exceeds that of self employed Canadians overall. Aboriginal businesses have created approximately 82,000 full time jobs and 18,000 part time jobs, A doorway to federal procurement opportunities. 3

4 How PSAB Works 4 Main elements of PSAB 1. Mandatory Set Asides: Set Asides are mandatory if: An area, community or group in which Aboriginal people make up at least 80% of the population The Aboriginal population will be the recipient of the good, service or construction And the value of the contract is over $ Voluntary Set asides: - Employed if: Aboriginal capacity exists The client department voluntarily decides to apply the PSAB set aside where operational requirements, best value prudence and probity and sound contracting management can be assured Departments are responsible for setting their own PSAB targets Reporting is done on an annual basis 4

5 How PSAB Works 4 Main elements of PSAB 3. Collaboration agreements and partnerships: Allows Aboriginal and non Aboriginal partnerships to bid on opportunities that have been set aside 4. Use of Aboriginal criteria: In awarding of prime contracts, departments are encouraged to: Request Aboriginal sub contracting plans either as a mandatory requirement or a rated evaluation criteria Can be applied only if International Trade Agreements are exempt 5

6 How PSAB Works An Aboriginal business may be: a sole proprietorship, limited company, cooperative, partnership, or not-for-profit organization in which Aboriginal persons have majority ownership and control meaning at least 51 percent, and In the case of a business enterprise with six or more fulltime employees, at least 33 percent of the full-time employees are Aboriginal persons, -OR- A collaboration agreement in which an Aboriginal business or Aboriginal businesses as defined above have at least 51 percent ownership and control. 6

7 PSAB Tools Tools and Approaches Database with registered Aboriginal businesses demonstrating Aboriginal capacity; Outreach and training activities with Businesses, Federal, Provincial and Territorial Governments approx 65 per year; Work closely with businesses and stakeholders to undertake Aboriginal supplier development activities; Lead a national interdepartmental PSAB Coordinator Network to help apply and support the policy; and Facilitate and intervene in the application of set-asides of government procurement for Aboriginal businesses. Ensuring Effectiveness Collect and analyse annually, qualitative and quantitative data from procuring Departments; Monitor and track the Merx to determine the number of setasides. 7

8 PSAB Tools Role in advising federal departments, provincial/territorial governments and businesses in: Input in the procurement phase of projects by providing Aboriginal business capacity to federal departments and agencies; Advise on the application of International Trade Agreements as they apply to PSAB (i.e. WTO- Agreement on Government Procurement, NAFTA, AIT and any future Free Trade Agreements); Review proposed procurement strategies on Major Crown Projects (projects with a value over $100M) and participation on the Senior Project Advisory Committee; 8

9 PSAB Tools Review notifications in order to negotiate Aboriginal Set Aside opportunities under the Procurement Review Committee (contracts value between $2M $100M) Since 2009, 414 procurement oppourtunities reviewed 19 already included set-aside 39 were negotiated with contract authorities Advise via joint engagement on Comprehensive Land Claim Agreements and how it may apply to PSAB 9

10 PSAB & the Federal Framework for Aboriginal Economic Development PSAB is a key element that delivers on the Federal Framework for Aboriginal Economic Development s (FFAED) strategic priority of strengthening Aboriginal entrepreneurship. FFAED commitments to enhance/strengthen PSAB: Increase the number of registered Aboriginal businesses Increase in number and total value of set-aside contracting Increased and improved training for Aboriginal businesses and federal procurement officers Strengthen capacity of entrepreneurs to succeed in winning contracts Bring together the experience and resources of willing partners including Aboriginal Canadians, provinces and territories, and the private sector to take advantage of economic opportunities Facilitate linkages with the Aboriginal 10 and non- Aboriginal private sector

11 PSAB & the Federal Framework for Aboriginal Economic Development Leveraging Framework commitments to enhance procurement opportunities inside and outside the federal government: Create better links between government and the private sector that will support access to procurement opportunities. Facilitate opportunities for Aboriginal businesses to utilize Aboriginal and mainstream financing to access procurement opportunities. Establish collaborative federal approaches and initiatives in support of Aboriginal international business development and promotion. Framework commitments to enhance procurement opportunities inside 11

12 PSAB Success AFN Engineering Inc. Ayshkum Engineering Incorporated Beesum Communications Columbia Environmental Consulting Ltd. Cougar Technical Services Ltd. Cree-Tech Inc. Dalian Enterprises Inc. Donna Cona Inc. EagleSpirit Marketing Inc. FirstWind Power, Inc. FoxWise Technologies Inc. Green Eagle Services Inc. Gwaii Services Hôtel-Musée Premières Nations Inuvialuit Development Corporation Jacknife Timber Ltd. Kisik Marketing & Communications Ltd. Membertou Development Corporation Nan Engineering And Survey Services Neegan Burnside Ltd. Nunavik Rotors Inc. Poirier Communications Ltd. Qikiqtaaluk Corporation SWIFT EAGLE INC 12

13 Business Associations PSAB Success Productive partnerships nation-wide Aboriginal Human Resource Council (AHRC): collaborate in training businesses on Aboriginal Procurement; Canadian Council for Aboriginal Business (CCAB): APBP consults with CCAB regarding the success and challenges faced by Aboriginal businesses; Public Sector Aboriginal Business Association (PSABA): APBP collaborates with PSABA to increase awareness of government procurement strategies and developing new opportunities for Aboriginal companies; and Canadian Aboriginal and Minority Supplier Council (CAMSC): helps facilitate procurement 13 opportunities between major corporations in Canada and Canadian Aboriginal suppliers.

14 PSAB Success Federal Partners Interdepartmental Legal Agreement (ILA) with Office of Small and Medium Enterprise (OSME) through PWGSC for outreach activities; ILA with Industry Canada for shared Aboriginal Business database. Provincial Partners Memorandum of Understanding (MOU) with Ministry of Aboriginal Affairs (Ontario) to assist in developing a PSAB policy for the province; Worked with the Province of Manitoba to establish a PSAB policy for the province that mirrors the Federal policy. 14

15 Results - Number of Contracts Awarded Since ,174 18,000 16,000 14,000 # of incid more more than $25K 12,000 10,000 8,000 6,000 # of set-asides more than $25K Incid & set-asides less than $25K 4,000 2,000 Total # Year The largest number of contracts awarded to Aboriginal businesses are of a value less than $25K which make up the majority of the total number of contracts (blue and yellow lines). A marked increase in the number of contract awarded in 2002 is due to an increase in purchases of services valued at less than $25 k for that year. 15

16 Millions Results - Increasing Contract Value Since $3.5B $ incid more than $25K $ set-asides more than $25K $ incid & set-aside less than $25K Total $ millions Year Most of the high value contracts awarded to Aboriginal businesses are incidentals over $25K. Since its inception, PSAB has developed Aboriginal business capacity. Some of these businesses have matured and now bid on tenders that are open to all bidders. The peaks seen in 2004, 2007 and 2009 are due to standing offers 16 being renewed, an increased awareness of Aboriginal business capacity and other factors. In 2009, $454 M worth of contracts were awarded.

17 Results - Top Ten Departments $423M PSAB Top Ten Departments for 2009 $ PWGSC $ AANDC $ DND HC $ DFO $ RCMP $80.00 Parks $60.00 Corrections $40.00 Environment $20.00 Transport $0.00 PWGSC greatly exceeds other departments since they undertake procurement on behalf of other departments. Millions PWGSC $175M or 41% RCMP $8M or 2% AANDC $129M or 31% Parks $6M or 1% DND $46M or 11% Corrections $3M or 0.7% 17 HC $32M or 8% Environment $1.9M or 0.47% DFO $21M or 5% Transport $1.6M or 0.39%

18 Be Part of PSAB Success Aboriginal businesses are encouraged to register with PSAB in order to promote their business capacity to federal government departments and agencies. AANDC supports Aboriginal businesses promote supplier capabilities through means of various databases: Industry Canada s Aboriginal Business Directory, and; Contracts Canada s Supplier Registration Inventory. 18

19 Be Part of PSAB Success contact AANDC by to or by phone at Check departmental source lists. Industry Canada's Aboriginal Business Directory; and Contracts Canada's Supplier Registration Inventory 19

20 Be Part of PSAB Success Participate in Supplier Development Activities Regularly monitor MERX Register with PSAB to start bidding on Set-Aside contracts Register in Industry Canada s ABD to promote your business Contact a PSAB coordinator, materiel managers or the PSAB team for more information 20

21 Contact The PSAB Team is pleased to answer your questions. Contact us through the PSAB Help Line at or by to The PSAB website can provide you with more information. 21