Eligibility for Indigenous procurement set aside

Government support for Indigenous economic development through federal procurement

Changes to eligibility requirements

Businesses registered in the Government of Canada's Indigenous Business Directory prior to August 6, 2021 are not impacted by the changes to the eligibility requirements. One of the new eligibility criteria allows registered businesses to continue to grow without the 33% Indigenous employee criteria.

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About the Indigenous procurement set aside

A mandatory set-aside is used for procurements that are destined for an area, community or group in which Indigenous people make up at least 51% of the population and where the Indigenous population will be the recipient of the good, service or construction.

Who is eligible

An Indigenous business, which can be:

or

or

For more information on the eligibility requirement, consult: Contracting Policy Notice 1996-6

Proof of eligibility

For this program, business owners must be Indigenous: First Nations, Inuit or Métis and ordinarily resident in Canada.

Evidence of being an Indigenous person will consist of such proof as:

Evidence of being resident in Canada includes a provincial or territorial driver's licence, a lease or other appropriate document.

Requirements for bidders in the Set-Aside Program for Indigenous Business

In respect of a contract, (goods, service or construction), on which a bidder is making a proposal which involves subcontracting, the bidder must certify in its bid that at least 33% of the value of the work performed under the contract will be performed by an Indigenous business.

Value of the work performed is considered to be the total value of the contract less any materials directly purchased by the contractor for the performance of the contract. Therefore, the bidder must notify and, where applicable, bind the subcontractor in writing with respect to the requirements that the Indigenous Set-Aside Program may impose on the subcontractor or subcontractors.

The bidder's contract with a subcontractor must also, where applicable, include a provision in which the subcontractor agrees to provide the bidder with information, substantiating its compliance with the program and authorize the bidder to have an audit performed by Indigenous Services Canada (ISC) to examine the subcontractor's records to verify the information provided. Failure by the bidder to exact or enforce such a provision will be deemed to be a breach of contract and subject to the civil consequences referred to in this document.

As part of its bid, the bidder must complete the Certification of Requirements for the Set-Aside Program for Indigenous Business (certification) stating that it:

It is not necessary to provide evidence of eligibility at the time the bid is submitted. However, the business should have evidence of eligibility ready in case it is audited. The civil consequences of making an untrue statement in the bid documents, or of not complying with the requirements of the program or failing to produce satisfactory evidence to ISC regarding the requirements of the program, may include:

In the event that the contract is terminated because of an untrue statement or non-compliance with the requirements of the program, ISC may engage another contractor to complete the performance of the contract and any additional costs incurred by ISC shall, upon the request of ISC, be borne by the business.

Business ownership requirements

Evidence of ownership and control of an Indigenous business or joint venture may include:

Ownership of an Indigenous business refers to "beneficial ownership" such as who is the real owner of the business. ISC may consider a variety of factors to satisfy whether Indigenous persons have true and effective control of an Indigenous business.

See Appendix A for a list of the factors which may be considered by ISC.

Subcontracts

Evidence of the proportion of work done by subcontractors may include contracts between the contractor and subcontractors, invoices, and paid cheques. Evidence that a subcontractor is an Indigenous business (where this is required to meet the minimum Indigenous content of the contract) is the same as evidence that a prime contractor is an Indigenous business.

Certification of requirements for the Set-Aside Program for Indigenous Business

A bidder who submits, under this program, a bid or proposal in response to a solicitation must complete and submit this certification. Failure to submit this certification will result in the proposal's being found non-compliant.

1. i) I, _________________________________________ (Name of duly authorized representative of business) hereby certify that ______________________________ (Name of business) meets, and shall continue to meet throughout the duration of the contract, the requirements for this program as set out in the attached document entitled "Requirements for the Set-Aside Program for Indigenous Business", which document I have read and understand.

ii) The aforementioned business agrees to ensure that any subcontractor it engages with respect to the contract shall, if required, satisfy the requirements set out in "Requirements for the Set-Aside Program for Indigenous Business."

iii) The aforementioned business agrees to provide to ISC, immediately upon request, information to substantiate a subcontractor's compliance with this program.

Please check the applicable box:

2. i) The aforementioned business is an Indigenous business which is a sole proprietorship, band, limited company, co-operative, partnership or not-for-profit organization, [ ]

OR

ii) The aforementioned business is a joint venture between 2 or more Indigenous businesses or an Indigenous business and a non-Indigenous business. [ ]

3. The aforementioned business agrees to immediately furnish to ISC, such evidence as may be requested by ISC from time to time, corroborating this certification. Such evidence shall be open to audit during normal business hours by a representative of ISC, who may make copies and take extracts from the evidence. The aforementioned business agrees to provide all facilities for audits and to furnish information requested by ISC with respect to the certification.

4. It is understood that the civil consequences of making an untrue statement in the bid documents, or of not complying with the requirements of the program or failing to produce satisfactory evidence to ISC regarding the requirements of the program, may include:

In the event that the contract is terminated because of an untrue statement or non-compliance with the requirements of the program, ISC may engage another contractor to complete the performance of the contract and any additional costs incurred by ISC shall, upon the request of ISC, be borne by the aforementioned business.

5. Date _____________________

Signature ______________________________________

Place ____________________

Title (duly authorized representative of business)

______________________________________

For: (name of business)

_______________________________________

Appendix A: Factors to determine Indigenous ownership

Factors that may be considered in determining whether Indigenous persons have at least 51% ownership and control of an Indigenous business include:

Owner - employee certification form

1. I, ________________________________________________, am an owner and/or full-time employee of_____________________________________, and an Indigenous person, as described in the document "Requirements for the Set-Aside Program for Indigenous Business".

2. I certify that the above statement is true and consent to its verification upon the request of ISC.

Date ___________________

Signature of owner or employee

________________________________________________________

Place ___________________

Contact us

10 Wellington Street, room 1105
Gatineau QC  K1A 0H4
Tel: 1-800-400-7677
Fax: 819-956-9837
Email: IndigenousProcurement@canada.ca

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