Evaluation of the Procurement Strategy for Aboriginal Businesses

Background and Description

Recognizing that Aboriginal businesses are under represented among firms seeking and winning federal government procurement opportunities, AANDC partnered with Public Works and Government Services Canada to develop the PSAB in 1995.

With its introduction, the Government of Canada recognized that, while serving its primary purpose of obtaining required goods and services at market rates, procurement is also a tool for Aboriginal businesses to grow by gaining experience, developing capacity, and forming partnerships with other businesses to compete for procurement opportunities. PSAB was intended to support and foster economic growth in the Aboriginal business sector through greater participation in government procurement. PSAB came into effect on April 1, 1996, pursuant to the Treasury Board's Contracting Policy, making it a government-wide policy,^{Footnote 1} applicable to all federal departments and agencies designated as departments for the purposes of the Financial Administration Act (with the exception of the Canada Revenue Agency). PSAB is led by AANDC under the authority of Treasury Board contract policy notices.

In June 2009, the Government of Canada announced the new Federal Framework for Aboriginal Economic Development in conjunction with an action plan to support its implementation. PSAB is part of the 2009 Action Plan to implement the Federal Framework for Aboriginal Economic Development. To help address challenges encountered by Aboriginal business to access federal procurement, through the Federal Framework for Aboriginal Economic Development, the Government invested $8.3 million over four years (2009-2013) in PSAB.

PSAB supports the following government priorities that were established in the 2009 Federal Framework for Aboriginal Economic Development^{Footnote 2}:

• Maximizing economic outcomes for Aboriginal Canadians, through the awarding of contracts, requirement on Aboriginal employees, requirements on work performed by Aboriginal employees throughout a contract, etc;
• Support skills and training to create new opportunities and choices for Aboriginal people, by requiring Aboriginal businesses to employ (and provide the necessary skills training to) Aboriginal peoples;
• Leveraging investment and promoting partnerships with the private sector to produce sustainable growth for Aboriginal peoples, by encouraging joint ventures between Aboriginal and non-Aboriginal firms, and contribution agreements with private firms to establish sustainable business partnership with Aboriginal businesses; and
• Act to free businesses to grow and succeed by removing barriers, by linking Aboriginal businesses to the training and tools necessary to understand and utilize the federal tendering system to win contracts.

Furthermore, the Framework outlines a way forward to increase the ability of Aboriginal suppliers to successfully bid on contracts, increase awareness and implementation of the strategy among federal departments, and increase the number of registered firms in the Aboriginal Business Directory.

PSAB and the Federal Framework for Aboriginal Economic Development commitments formed the basis of developing a modernized approach to enhance Aboriginal procurement and business partnerships more broadly. The development of this modernized approach was part of a commitment in the 2010 Land and Economic Development strategic roadmap.

It should be noted that the North American Free Trade Agreement and the World Trade Organization Agreement on Government Procurement provide for procurements to be "set aside" for minority and small businesses. Procurements set aside for Aboriginal businesses are therefore excluded from the provisions of these two international trade agreements.

Within AANDC's Economic Development Programming, there is also the Aboriginal Workforce Participation Initiative, which is intended to benefit Aboriginal people in Canada. This component seeks increased participation by Aboriginal people in the economy through economic and employment opportunities. This initiative works to break down the barriers that may deter business opportunities and the employment of Aboriginal peoples. This was to be accomplished by raising awareness of Aboriginal employment issues; promoting and retaining Aboriginal employees; enhancing the capacity and competencies of Aboriginal businesses; establishing partnerships with Aboriginal organisations and the private sector; showcasing Aboriginal capacities; and promoting information-sharing and networking among stakeholders.

Objectives and Expected Outcomes

Program Management, Key Stakeholders and Beneficiaries

Program Management and Stakeholders

Program Resources

Relevance

Continued Need

Does PSAB continue to address a demonstrable need and is it responsive to the needs of Aboriginal businesses? Does the Aboriginal Workforce Participation Initiative address a demonstrable need and is it responsive to the needs of Aboriginal peoples and First Nation and Inuit communities?

Alignment with Government Priorities

Are the objectives of the program consistent with government-wide priorities and AANDC's strategic outcomes?

Alignment with Federal Roles and Responsibilities

To what extent are the objectives of the program aligned with the role and responsibilities of the federal government? Is there duplication or overlap with other policies or initiatives?

Performance

Effectiveness (i.e. Success)

To what extent are the PSAB's expected outcomes (immediate, intermediate and long term) being achieved?

To what extent have external and internal factors influence the achievement of PSAB's expected outcomes? Are there any unexpected impacts of the PSAB, either positive or negative?

To what extent has PSAB created a leverage effect within the Federal Framework for Aboriginal Economic Development?

To what extent is PSAB programming consistent with Treasury Board policy, directives and procedures?

Have the appropriate mechanisms to deliver PSAB been put in place?

Demonstrations of Efficiency and Economy

• Has the PSAB optimized its processes and quality of services to achieve expected outcomes? (efficiency)
• Are there other efficient ways of delivering the initiative to achieve similar results? (efficiency)
• Are there opportunities to achieve the intended results of PSAB using fewer resources? (economy)

Other Evaluation Issue(s)

Lessons Learned and Best Practices

What are the lessons learned and best practices that emerged from the implementation of PSAB and other similar programs from other jurisdictions, countries, or in the private sector, which may enhance PSAB effectiveness?

Evaluation phases

Phase 1: Preliminary Activities and Planning. Prior to the evaluation, EPMRB, in collaboration with the PSAB team, reviewed the uncompleted PSAB Performance Measurement Strategy in April 2012 to reflect new activities undertaken since the Results-based Management and Accountability Framework/Results-based Audit Framework for the Procurement Strategy for Aboriginal Business (see Appendix A), and the Performance Measurement Strategy of the New Federal Framework for Aboriginal Economic Development (see Appendix B). In December 2012, the evaluation team met the management team of the PSAB to discuss evaluation issues/questions, approach and scope.

Phase 2: Research and Analysis. The core evaluation questions identified in the planning phase of the evaluation guided all stages of data collection, analysis and reporting with the ultimate goal being to gather as many lines of evidence as possible through data triangulation in order to answer each question thoroughly.

Phase 3: Reporting. Several documents and reports were created to reflect the evidence collected from the evaluations lines of inquiry. These documents were used to influence the production of this draft evaluation report. The evaluation report includes the evidence, conclusions and recommendations related to PSAB and Aboriginal Workforce Participation Initiative where applicable.

Data Sources

4.1.1 Program Outcomes: Aboriginal firms win contracts and Contribution to the Creation or Growth of Viable Aboriginal Businesses

Survey and interview participants largely agreed that PSAB has had a positive impact on:

• the value of federal contracts (both via set-asides and the general process);
• investment in Aboriginal firms and start-ups, the capacity development of firms, and the development of partnerships between Aboriginal and non-Aboriginal businesses; and
• building strategic partnerships between the Government of Canada, Aboriginal people, the private sector and provinces and territories.

There is much less certainty, however, as to whether PSAB has had an impact on Aboriginal entrepreneurship, partnerships that have actually maximized economic opportunities, the development of Aboriginal human capital, and focusing the role of the federal government in contributing to Aboriginal economic success.

Respecting Aboriginal entrepreneurship, it is difficult to attribute any incremental improvements over time to government procurement or policies and promotion regarding set-asides with Aboriginal firms. Improvements in Aboriginal entrepreneurship could be gauged by measuring the growth of Aboriginal firm contracts (specific to each firm) and the emergence and relative growth of new firms over time. In order to do this, there would need to be data on the value and frequency of contracts specific to each Aboriginal firm over time. Until 2012, data that would allow for the assessment of the value and frequency of contracts by firm had not been collected. Critically, the new data collection mechanisms that now include these variables only do so for set-aside arrangements and not for incidental contracts. Given that the PSAB objectives are set toward Aboriginal firms winning contracts in general and contributing to the creation or expansion of viable businesses, current data collection allows for only a portion of the performance story respecting PSAB and its potential impacts on Aboriginal entrepreneurship. The key concern respecting this issue that was raised by key informants was that PSAB may be acting as a vehicle to continue to provide existing Aboriginal businesses with contracts but may be doing little for newer businesses that have not gained the experience to date to be competitive in the bidding process, or even to qualify for a set-aside or incidental contract.

As shown in Figure 1, existing data suggest that the total value of all federal government contracting to Aboriginal firms (set-asides and incidental combined) relative to total spending on procurement has shown an increase in recent years, and well exceeds its performance management framework target of two percent by 2015. However, there are significant concerns with the reliability of data for incidental procurement contracts with Aboriginal firms. Critically, the criteria for a business identifying as "Aboriginal" is poorly defined and unverified. A firm may identify as Aboriginal for the purpose of a contract for various reasons, including that there are a number of Aboriginal people employed under the specific contract. Federal government interviewees raised concerns about this issue; specifically, that the resources originally in place to monitor compliance have been significantly reduced; there are little, if any, official verifications that Aboriginal firms are actually completing the work (particularly in the cases of partnerships); and there is concern that there may be abuse of the program in this regard.

The main issue in reporting on performance is that the data collection approach before 2012 did not allow for classification of value and frequency by business, thus preventing any proxy analysis of incidental procurement with Aboriginal firms.

In specifically examining set-asides, their total value has varied over time, as has the value as a percentage of total federal procurement (see Figure 2). Many variables can influence these figures such as one-time large projects and variability in departmental budgets.

It can be stated, however, that the total value of set-asides and their relative proportion of total federal government procurement had increased steadily between 2009 and 2011 (the most recent year with data organised in this fashion). Further, data collection methods effective 2012 allow for an assessment of distinct businesses and growth. For 2012 (the most recent year currently available), there were set-asides with 124 businesses, with a total of 1,424 distinct contracts totaling close to $109 million in value.

A component of the PSAB is to ensure that relevant stakeholders are familiar with and aware of the related policies and processes. As of 2012, over 120 information and outreach sessions had been held throughout Canada in order to promote Aboriginal procurement opportunities.^{Footnote 38} Public Works and Government Services Canada and the Office of Small and Medium Sized Enterprises have held information booths on public procurement at Aboriginal Businesses Conferences.^{Footnote 39} The Office of Small and Medium Enterprises has hosted seminars to help suppliers understand procurement with the federal government; to register in the database; to build relationships; to conduct procurement searches; to obtain a security clearance; and to bid on tenders.^{Footnote 40} Approximately 65 training activities and outreach sessions with federal, provincial and territorial governments and businesses are held per year.^{Footnote 41} The 2010-2011 Departmental Performance Report noted that 37 procurement readiness training sessions were delivered to Aboriginal communities about government procurement procedures and opportunities.^{Footnote 42} Finally, the Update on the Implementation of the Federal Framework for Aboriginal Economic Development noted that PSAB had largely met its performance targets, which included conducting over 120 information and outreach sessions across Canada to promote Aboriginal procurement opportunities and tools.^{Footnote 43} PSAB has reached out to Aboriginal businesses through training and outreach sessions; however, there are no reports that detail outcomes related to these sessions.

The PSAB has also included procurement training sessions with government employees and requires that departments set targets for Aboriginal procurement. In 2009-2010, AANDC provided procurement-readiness training to 43 departments and agencies reaching over 900 federal procurement officers.^{Footnote 44} As of 2011, AANDC had hosted a national training exhibition in Winnipeg, which reached over 150 participants, including PSAB coordinators and government procurement officers.^{Footnote 45} Finally, the Canada School of Public Services has a free online training tool entitled "Aboriginal Considerations in Procurement (C223), which introduces public servants to their obligations with Aboriginal procurement and comprehensive land claims agreements.^{Footnote 46} Thus, there have been significant strides to increase awareness of the PSAB in the federal government.

Regarding targets for set-asides, AANDC has negotiated with department contracting authorities to increase the number of Aboriginal set-asides.^{Footnote 47} Unfortunately, reporting of targets is not required and data are not collected. Among federal government survey respondents, about 45 percent said their departments had set targets for set-asides. Twenty-three respondents said their departments had not set targets, and 27 weren't sure. Among those who knew their department had set targets, 41 respondents said they were being met, while three said they were not and 21 weren't sure. When asked what mechanisms are most responsible for encouraging departments to meet their performance objectives respecting set-asides, they mainly attributed it to contract stipulations/Public Works and Government Services Canada tools and registration processes; awareness amongst suppliers; departmental culture; and training and courses.

Training sessions for government employees such as mandatory training for program staff under the Aboriginal Entrepreneurship sub-activity are now being implemented on an ongoing basis, and partnerships with government stakeholders have been actively pursued to build the stability of the program. AANDC has signed a Memorandum of Understanding with the Office of Small and Medium Sized Enterprises to conduct outreach sessions with Aboriginal businesses and to promote PSAB.^{Footnote 48} An agreement was also drafted with Industry Canada so that AANDC would be able to register businesses on the Aboriginal Business Directory and to use registration forms to gather capacity data.^{Footnote 49} A Memorandum of Understanding has been developed with Industry Canada to house the Aboriginal Business Directory online, which enables Aboriginal businesses to register under the PSAB. AANDC has also engaged in dialogue with Public Works and Government Services Canada to improve data collection on Aboriginal procurement.^{Footnote 50} Finally, AANDC has also made strides to promote the model to the provinces. Manitoba and Ontario have made Aboriginal procurement policies with the advice from the Department and work has been done to extend the model to Quebec, British Columbia and Alberta.^{Footnote 51}

Six pilot projects in sectors, including potash and shipbuilding have been supported to focus on providing a "diagnostic on procurement policies and opportunities for Aboriginal businesses; a feasibility study on the creation of long-term procurement model, procurement and business/ financial literacy training sessions, workshops and conferences."^{Footnote 52} Finally, in order to address the capacity gaps of Aboriginal suppliers in numerous sectors, eight pilot projects have been developed that will focus on data analysis, networking opportunities, assessment of Aboriginal capacity, the enhancement of business and financial literacy, and opportunities for Aboriginal businesses in major projects.^{Footnote 53}

Key informants also noted that partnerships and joint venturing with other firms provide project experience, which in turn increase the Aboriginal businesses opportunities for additional federal government contracts. Respecting partnerships, two key observations were that: 1) Industry – be it government or the private sector – is starting to see the benefits of partnering with Aboriginal businesses, which ultimately benefits all partners involved; however 2) there is a risk of "partnerships of convenience," where Aboriginal businesses may partner with larger firms so the contract is won, but ultimately, the non-Aboriginal firm conducts most of the work and the Aboriginal firm thus gains little if any experience from the project.

4.1.2 Creating a leverage effect within the Federal Framework for Aboriginal Economic Development

Since 2006, AANDC has worked with remediation teams across government to develop various approaches and provide advice on implementing and negotiating either a PSAB set-aside or Aboriginal participation component in the development of the procurement strategies for the remediation projects. Specifically, AANDC was able to negotiate set-asides through outreach, providing Aboriginal business capacity searches and providing an overview of PSAB.

For example, in early 2012, AANDC worked with Public Works and Government Services Canada to provide advice and an overview of PSAB for the Esquimalt Graving Dock Waterlot Remediation project for multiple phases of the project. The total value is approximately $85 million dollars of which a set-aside for one phase was for $6.5 million dollars on the Erosion Protection Wall project, and the next phase estimated between $2.5 to $3 million.

This example illustrates the potential leveraging of federal investment respecting set-asides; however, AANDC has not developed a clear method to measure a true leverage effect with most of its projects. The funding provided via Grants and Contributions through both the PSAB and the Aboriginal Workforce Participation Initiative is intended to stimulate business networks but the reporting on these investments does not capture performance in a way that would allow for the measurement of true leverage. Ultimately, what this leveraging would look like, and any related target-setting, was never fully articulated or developed. This outcome is not included in the 2014 Aboriginal Entrepreneurship Performance Measurement Strategy.

4.1.3 Other Outcomes of the PSAB and Aboriginal Workforce Participation Initiative

The 2014 Aboriginal Entrepreneurship Performance Measurement Strategy includes additional outcomes related to access to business opportunities; specifically that: partners adopt Aboriginal procurement strategies/participation agreements and support access to business opportunities; and that Aboriginal business capacity is matched with business/procurement opportunities.

In 2011, AANDC funded a research study through PSAB into ways that businesses operating in the electricity and renewable sector can increase their procurement of goods and services from Aboriginal businesses. The project was designed to increase awareness for Aboriginal businesses of the various opportunities within these sectors, examine the benefits of having an Aboriginal procurement strategy, and provide the foundation and a template for businesses looking to develop an Aboriginal procurement strategy of their own.

To date, however, there are no other reports that clearly link PSAB and Aboriginal Workforce Participation Initiative Grants and Contributions, or other activities, to the above-mentioned outcomes.

There have been several initiatives, particularly since 2008, which have promoted various entrepreneurship projects, conferences and seminars, and research projects. These have included Aboriginal Entrepreneurship Conferences and Tradeshows and other seminars intended to bring together human resources and Aboriginal diversity leaders. There were also significant projects undertaken in conjunction with the 2010 Vancouver Olympic Games, including a "Vancouver Olympics High End Art Engagement" with the Inuit Tapiriit Kanatami, which celebrated Inuit art; and the design of an Aboriginal pavilion.

Other highlights include:

• Funding research for a feasibility study by the Women's Economic Council: Regional Clustering Model for Aboriginal Women to develop a model for custom-fit programming, services, resources and networks relevant to supporting the needs of individual women and/or organizations supporting women in specific regions and/or circumstances (northern Inuit, First Nation, rural, etc.).
• Funding the Canadian Aboriginal Arts and Communication Business Studio: An Aboriginal skills, entrepreneurship and training centre, via the Ontario Native Literacy Coalition. A business studio was developed, along with training programs, and efforts to leverage funds via multiple other organizations and programs.
• Funding the organisation I Do Business for training master facilitators to train on the "Alexis principles." Fourteen people were trained as master facilitators, and a seminar was held with 92 participants and a planned delivery to up to 350 additional participants for 2013 (to train on event management and facilitating workshops on business development).
• Funding the Proteus Canada Institute and the Idea Connector Network to produce a series of interviews and panel discussions on topics related to "Empowering Women"; to produce a panel discussion with the participation of a mixed audience (town-hall type setting with online live participants from across Canada) as part of the Aboriginal Entrepreneurs Conference and Tradeshow; to produce a series of interviews on business start-ups and related issues; and to promote the Idea Connector Networks' productions via traditional and social media.
• Funding the Wachiay Friendship Centre to deliver the program "Small scale entrepreneurship for disadvantaged women: An Opportunity to break the cycle of the working poor." This project was designed to include a business incubator facility, training workshops, and one-to-one mentoring. A business model, operations manual and strategic partnerships with 14 other organizations were created.
• Supporting the British Columbia Aboriginal Business Association in regional forums to provide knowledge-sharing and business skills development delivered by professionals from eleven corporate partners, as well as the development of a marketplace project.
• Supporting the development of an Aboriginal Women's Entrepreneur Network – a series of activities under four pillars: establishing a National Aboriginal Women's investment fund; promoting financial knowledge, literacy and development; emphasizing asset-based development for Aboriginal women; and actively engaging young girls in future economic leadership.

4.1.4 Factors affecting the success of the PSAB

Concerns stemming from the key informant interviews corroborate many of the points raised in Section 3 on whether the current approach may be the most effective way to contribute to the creation or expansion of Aboriginal business. Specifically, there is a need to further support Aboriginal businesses in light of the complexity of the procurement processes, an increase in competitiveness caused by a decrease in the number of Request for Proposals being issued by the federal government resulting in a decrease in the percentage of contracts won versus the number of proposals being produced, and a decrease in per-diems all culminating to reduce the profitability of government contracts. Ultimately, the key informants suggested that without previous federal government contracting experience gained elsewhere, new Aboriginal businesses are not actively seeking federal government service contracts due to the complexity and barriers of government procurement processes.

Based on the feedback from key informants, an Aboriginal firm that does not have the requisite project experience and staff with the required number of years of relevant experience, will likely not win a federal government contract unless it is a PSAB set-aside and the mandatory and point-rated requirements have been loosened so that a less experienced bidder can qualify and be awarded the contract.

As noted by one of the key informants:

"Our experience has been that First Nations businesses [without previous government contracting experience] need advisors or support to help them write their first few proposals. There is a general lack of understanding amongst first time proposal writers and new businesses that governments use a rigorous proposal evaluation process and that the proposals must address the requirements that are specified within the Request for Proposal; if they don't do that they don't win the job."

This issue speaks to the need to strengthen efforts focusing on strengthening viable businesses, discussed in 3.1. The work to provide set-asides and promote the use of Aboriginal firms would be significantly bolstered by further efforts to help budding Aboriginal businesses and entrepreneurs better match their skills and capacity to emerging needs, and better understand the contracting process. It was noted in Section 4.1 that there are numerous activities ongoing via both PSAB and the Office of Small and Medium Enterprises to promote PSAB and provide outreach and information to businesses; however, as mentioned, there are no measures on the effectiveness of this work and a general consensus among interviewees that this is most in need of newer and more strategic approaches.

Some key informants stated that the complexity of the procurement processes, combined with an increase in competition due to reductions in contractual spending, has resulted in a decrease in the percentage of contracts won versus the number of proposals being produced, which may in turn mean increased cost with a lower likelihood of success for any given business (Aboriginal or otherwise). It is important to consider that while reductions in contractual expenditures and increased competitiveness is a reality for all firms, when considering the objective of increasing the relative percentage of firms winning contracts that are Aboriginal, there may be an increased need to further assist Aboriginal firms with increasing their competitive advantage through direct training and mentorships.

According to interviewees, qualifying under for set-asides, particularly as laid out in Task and Solutions Professional Services, requires that the Aboriginal firm has undertaken and completed a number of contracts during the last few years. This requirement to have completed a number of projects is at cross-purposes with PSAB's goal of facilitating access to federal government contracts, as issuing a PSAB set-aside under new Task and Solutions Professional Services will likely impede an Aboriginal firm to be a first-time bidder for that potential contract. Some interviewees felt that access to government contracting is decreasing because of these new barriers and what is perceived as a more demanding and complex procurement process. Without previous federal government contracting experience gained elsewhere, new Aboriginal businesses may not actively seek federal government contracts due to the complexity and barriers of government procurement processes, and because of decreased government contracting opportunities in general, opportunities for new Aboriginal businesses are becoming more limited. Thus, as discussed in Section 3.1, without a strengthened focus on building the business capacity of newer or smaller firms so that they can become more competitive in winning contracts, there is a risk that over time, PSAB could act to sustain a small number of well-established Aboriginal firms, as opposed to contributing to an increase in Aboriginal representation in procurement overall.

An additional concern raised by key informants related to the posting period for set-asides. A 25 day posting option is available to project authorities in order to incentivize the use of set-asides. However, some key informants raised concern that in some cases, this can actually pose a problem for bidders in that the turn-around time for proposals can be unfairly short compared to the standard 40 day posting period. Ideally, the 25 day posting option would only be used in cases where the contract is simple, such as purchasing and re-selling. For more complex projects, the posting period should remain the standard 40 days.

Importantly, however, interviewees generally felt that the biggest barrier to Aboriginal representation in business is related to education and job experience. There are significant and well-documented economic challenges facing Aboriginal peoples, and it is important to consider that there are significant socio-economic forces at play that are well-beyond the scope of what PSAB and its related activities can achieve.

1.1 United States

The United States Small Business Administration operates the 8(a) Business Development Program which helps small, disadvantaged businesses compete in the marketplace. The 8(a) program had a budget of $59.8 million in 2012. The 2014 Budget committed to providing $4 million for Small Business Administration to hire 32 new Procurement Center Representatives. Small Business Administration district offices monitor and measure the performance and progress through annual reviews, business planning and evaluations.

The 8(a) program elements include sole-source opportunities, competitive set-aside contract opportunities, joint-venturing, a mentor-protégé program and specialized business training. Participants in the 8(a) program are eligible for counseling, marketing assistance, and high-level executive development provided by the Small Business Administration and partners. Other benefits include access to surplus government property and supplies, Small Business Administration-guaranteed loans, and bonding assistance for being involved in the program.

Program eligibility for small disadvantaged businesses requires that enterprises be controlled and managed on a full-time basis by individual(s) meeting the Small Business Administration requirement for both social and economic disadvantage. Those requirements include disadvantaged Indian tribes. Businesses must be 51 percent owned by the eligible group. Businesses in the 8(a) program must be certified and classified as a small business according to the North American Industry Classification System standards.

In order to limit the reliance on the program and encourage firms to compete in the open market, the 8(a) program limits the amount of time that businesses can participate in the program.^{Footnote 54} Participation is limited to a total of nine years that are divided into a four year development stage and a five year transition stage. Once a business or individual participates in the 8(a) program once, neither the firm nor the individual are eligible to participate again.

To ensure businesses achieve success and conduct business in both the commercial and government sectors, each participant must develop a comprehensive business plan that set its business targets, objectives, and goals.^{Footnote 55} Meeting targets in the businesses plan is required for participation in sole-source contracts through the program. ^{Footnote 56} Participants are limited to receive up to a maximum of $100 million in sole-source contracts.

1.2 Australia

The Indigenous Opportunities Policy is a commitment under the National Partnership Agreement on Indigenous Economic Participation to strengthen government procurement policies to maximize Indigenous employment and business opportunities. The program is managed by the Department of the Prime Minister and Cabinet. For contracts over $5 million in regions with significant Indigenous populations, tenderers must submit a plan that outlines the training and employment of Indigenous people and the use of Indigenous suppliers. Plan submission and approval is managed through an online portal.

The Western Australia Government's Department of Training and Workforce Development has set up a number of development centres throughout the region that provide support to Aboriginal individuals and businesses. The centres offer a number of services, including:

• Aboriginal training or employment opportunities
• Mentoring
• Role modeling
• Aboriginal Business Directory
• Assistance for service providers assisting Aboriginal people with training and employment
• Registry of Aboriginal individual based on skills and qualifications for employer matching
• Advice to employers who want to diversify their workforce with more Aboriginal people
• Aboriginal workforce development data

2.1 Manitoba

The Manitoba Government's Procurement Services Branch operates an Aboriginal Procurement Initiative that works to increase participation of Aboriginal peoples and suppliers in providing goods and services to the Manitoba Government. The Aboriginal procurement criteria is considered when products or services are culturally specific to Aboriginal, or primarily designated for Aboriginal people. Procurement options included under the Aboriginal Procurement Initiative include Aboriginal Business Set-Aside, Mandatory Aboriginal Business Participation, Desirable Aboriginal Business Participation and Aboriginal Business Standard.

The Aboriginal Procurement Initiative program has the same criteria for participation as the PSAB. Certified businesses must be at least 51 percent Aboriginal owned and controlled by one or more Aboriginal Persons of Canada and the business has six or more full-time employees, at least one-third of those (full-time) employees must be Aboriginal Persons. Joint ventures that are controlled and owned by an Aboriginal business are also eligible.

Aboriginal Procurement Initiative also provides opportunities for Aboriginal businesses outside the province to work with the Manitoba Government with some exceptions related to the size of contract.

The Procurement Services Branch offers workshops on government contracts for Aboriginal businesses upon request, arranges meetings between suppliers and buyers, and maintains an Aboriginal Business Directory. Aboriginal Procurement Initiative is complemented by the Aboriginal Chamber of Commerce's procurement portal, a quote system for private sector organizations and all levels of government.

2.2 Ontario

Between March 2012 and March 2014, the Ontario Government ran the Aboriginal Business Procurement Pilot Program that helps connect Aboriginal businesses with opportunities to become of the governments suppliers of goods or services. The program includes an Aboriginal Business Set-Aside and Aboriginal Business Participation component. The criteria for eligibility is similar to PSAB and the Manitoba Government Aboriginal Procurement Initiative. Unlike those programs, when evaluating a supplier, departments may consider a non-Aboriginal supplier's track record of partnering with Aboriginal businesses, employing and/or training Aboriginal people.

2.3 Other Provinces and Territories

While other provinces do not necessarily have Aboriginal procurement strategies, there are a number of policies to support Aboriginal businesses. The British Colombia's Ministry of Finance has established the Aboriginal Procurement and Contract Management Guidelines, which support procurement from Aboriginal businesses when services are delivered to Aboriginal people in Aboriginal communities. It allows a direct award of a Shared Cost Arrangement, thus bypassing competition. The Nova Scotia Government has initiated Aboriginal procurement set-asides for some initiatives such as the Sydney Tar Ponds and Coke Oven cleanup.

The territories do not have Aboriginal procurement strategies, but rather policies that encourage buying local and from Aboriginal businesses. The Nunavut Government's Nunavummi Nangminiqaqtunik Ikajuuti (NNI Policy) encourages local procurement and a level of Inuit participation in the provisions of goods and services to the Government of Nunavut that reflects the Inuit proportion of the Nunavut population. The Northwest Territories Government has a Business Incentive Policy that provides an incentive toward Northwest Territories-based businesses when purchasing goods, services or construction. The Yukon Government has a Contracting and Procurement Regulation Directive that supports First Nations businesses through obligations arising out of the First Nations Final Agreement.