Statement: CCIB Response to the Office of the Procurement Ombud’s Procurement Practice Review of Contracts Awarded to Indigenous Businesses Report

Press Release

Canadian Council for Indigenous Business (CCIB) welcomes today’s findings from the Procurement Ombudsman. This report serves as a vital course correction, if actioned, to strengthen the integrity, accountability, and economic impact of federal Indigenous procurement.

CCIB has advocated for a fair, transparent, and accessible procurement system. For more than a decade, CCIB has provided extensive research and policy recommendations that align closely with many of the Ombudsman’s findings for systemic improvement.

Below, we outline how CCIB’s long-standing recommendations align with the current report.

Recommendation 1: Develop a comprehensive Indigenous procurement policy

The Ombudsman calls on Indigenous Services Canada (ISC) to expedite a consolidated, government-wide policy to clarify rules, roles, and auditing.

• Centralization: CCIB advised governments to “simplify language, processes, and requirements” and to “centralize opportunities and the administration of Indigenous procurement” (Reviewing Regional Indigenous Procurement, 2024).

• Partnership:  We stressed that the federal government must monitor policies and identify barriers “in partnership with Indigenous organizations and businesses.” (Reaching 5%, 2022).

• Roadmap: CCIB previously called for “clear and precise ‘how to’ directions” to act as a roadmap for policy tools (Creating the Conditions for Success, 2022).

• Communication: We have noted that poor communication and rigid policies severely hinder engagement (Barriers and Wise Practices for Indigenous Engagement in Federal Procurement, 2024).

• Verification: CCIB recommended an “independent, Indigenous-operated intermediary” to ensure ethical practices and accurate data (Creating the Conditions for Success, 2022) and proposed devolving the administration of the Indigenous Business Directory to CCIB (Reviewing Regional Indigenous Procurement, 2024).

Recommendation 2: Indigenous-led recourse mechanism

The Ombudsman recommends establishing a permanent, impartial, Indigenous-led mechanism to formally challenge PSIB set-asides.

• Trust & Support: CCIB urged governments to “devolve the administration of these efforts to Indigenous organizations to increase trust” and establish tailored training and feedback processes for businesses (Reviewing Regional Indigenous Procurement, 2024).

Recommendation 3: Accurately report the 5% target

The Ombudsman recommends updating 5% target calculations to reflect only the value of work actually completed by Indigenous businesses, preventing non-Indigenous subcontractors from inflating numbers.

• Combatting “Gilding”: CCIB called for tracking and rewarding bidders who meet Mandatory Minimum Requirements (MMR) while holding those who do not accountable (Reaching 5%, 2022).

• Content Plans: We recommended requiring bidders to submit Indigenous content plans identifying how they will achieve requirements and the penalties for failing to do so (Exceeding 5% in Federal Indigenous Procurement, 2024).

• JV Audits: CCIB proposed auditing all Joint Venture (JV) and partnership programs to ensure spend is meaningfully directed to Indigenous businesses rather than “phantom” or “paper” ventures (Exceeding 5% in Regional Indigenous Procurement, 2024).

The Path Forward

The Ombudsman’s review highlights the importance of clear guidance, consistent oversight, and modernized tools across departments. These are structural issues that can and must be addressed to ensure Indigenous procurement delivers meaningful economic outcomes

Tools such as CCIB’s Certified Indigenous Business (CIB) program, which is inclusive of verified First Nations, Métis and Inuit businesses, and CCIB’s proprietary Supply Change™ program and Indigenous Procurement Marketplace are examples of tools and solutions that both provide the proven, reliable and highly reputable frameworks needed to close the gaps identified by the Ombudsman.

While we want to see a faster resolution to the systemic barriers outlined in this report, CCIB supports the federal government’s path toward accountability, which, if adhered to, will help ensure that Indigenous businesses can continue supporting the Canadian economy.

CCIB has long been a partner with the federal government and is prepared to co-develop and implement these recommendations. True Indigenous procurement means Indigenous businesses are doing the work, building long-term capacity, and strengthening their communities. CCIB is dedicated to ensuring the 5% target represents true Indigenous economic empowerment.

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