26 BUILD MANITOBA winnipegconstruction.ca BENCHMARKS Indigenous procurement is a crucial part of economic reconciliation in Canada. It is a practical way for governments and companies to meaningfully advance the interests of Indigenous communities, strengthen local economies and build long-term relationships grounded in mutual respect and collaboration. For Manitoba in particular, Indigenous procurement carries significant potential. Manitoba has the largest Indigenous per capita population in Canada, and Indigenous businesses are woven into the province’s natural resource, commercial and financial service sectors. Despite these successes, companies have reported unique and nuanced barriers when procuring goods and services from Indigenous suppliers. These challenges include difficulty identifying Indigenous ownership, complex procurement procedures and deep-rooted systemic issues. This article outlines key issues that private and public organizations should understand and offers guidance to improve the accessibility and effectiveness of Indigenous procurement. THE IMPORTANCE OF INDIGENOUS PROCUREMENT Indigenous entrepreneurs contribute significantly to the Canadian economy, with tens of thousands of Indigenous- owned businesses operating across the country. The federal government has set a mandatory requirement that a minimum of five per cent of the total value of federal contracts must be awarded to Indigenous businesses. This target is being phased in between 2022 and 2025.1 The Government of Manitoba is also taking steps to promote Indigenous procurement. The province’s Indigenous Procurement Initiative (IPI) aims to increase the participation of Indigenous suppliers by integrating Indigenous procurement options into tenders and promoting community economic development. The IPI highlights benefits such as stimulating Indigenous business development, creating employment opportunities and strengthening relationships between Indigenous suppliers and government buyers.2 Despite these initiatives, both federal and provincial research shows that actual procurement outcomes remain far below targeted levels.3 Indigenous suppliers and service providers across the country are working with industry and governments to identify barriers that prevent them from fully capitalizing on government and corporate procurement opportunities. The Indigenous Chamber of Commerce (ICC) reports that systemic discrimination, historical restrictions and procurement policies that do not align with Indigenous needs continue to hinder meaningful progress for both Indigenous proponents and private and public organizations that aim to participate in procurement processes built on trust, relationship building and shared prosperity.4 KEY BARRIERS IN INDIGENOUS PROCUREMENT Difficulty identifying Indigenous ownership A frequent challenge for companies is confirming which businesses are genuinely Indigenous-owned. In Manitoba, the IPI requires that an Indigenous business be at least 51-per-cent owned and controlled by an Indigenous person and, subject to the number of employees, at least one-third must be Indigenous individuals.5 However, public and private organizations may lack a transparent, user-friendly verification process (or have no verification process at all), and this can lead to hesitation around awarding contracts. The Canadian Council for Indigenous Business (CCIB) reports that some Indigenous entrepreneurs have expressed difficulties proving Indigeneity, along with concerns that verification criteria sometimes work against them.6 Without culturally responsive and distinctions-based mechanisms to identify Indigenous ownership, procurement criteria risk unintentionally excluding legitimate Indigenous suppliers, engaging in overly cautious procurement practices or unintentionally supporting organizations that are not truly Indigenous-owned. Procurement processes that are too complicated Complex procurement systems By Andrew Konopelny, Drew Lafond, Scott Masson and Dani Nichols, MLT Aikins INDIGENOUS PROCUREMENT IN CANADA AND MANITOBA Opportunities, barriers and paths to meaningful partnership 1 open.canada.ca/data/dataset/5d27d152-09d8- 4303-adc4-0c46b4a9733b 2 www.manitoba.ca/central/psc/api/ab_proc.html 3 www.indigenouschambermb.ca/2025/02/20/ unlocking-the-economic-potential-of-indigenous- procurement-in-manitoba 4 Ibid. 5 www.manitoba.ca/central/psc/pubs/api/ indigneous%20procurement%20initiative.pdf 6 www.ccib.ca/wp-content/uploads/2024/10/report- review-regional-indigenous-procurement.pdf
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