Presented by:

Stephen Jacobsen

Program Officer Aboriginal Affairs & Northern Development Canada

October 25, 2012

Table of Contents

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• The Aboriginal Business Landscape • Why Consider the PSAB?

• PSAB Designed for Success • The Power of PSAB • Making PSAB Work for You

The Aboriginal Business Landscape “First Nation, Inuit, and Métis businesses are creating jobs and wealth within their

respective communities, and collectively helping to improve the living conditions among the Aboriginal population (both on and off reserve).”

-- True to Their Visions: An Account of 10 Successful Aboriginal Businesses (Report from the Conference Board of Canada – November 2009)

An evolving dynamic environment

• Aboriginal people are creating businesses at nine times the rate of the average Canadian

• Aboriginal businesses are a key contributor to Aboriginal employment; Aboriginal people comprise 62% of the employees of Aboriginal firms

• Employment and wealth creation is key to economic self-reliance

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Why Consider the PSAB? “At a relatively small cost to government and taxpayers, PSAB helps to strengthen Aboriginal business bidding capacity, competitiveness, and

Aboriginal employment.” Canadian Council for Aboriginal Business’ (CCAB)Aboriginal Business Survey (ABS), 2011

• The Procurement Strategy for Aboriginal Business (PSAB) aims to support business capacity development by identifying opportunities for Aboriginal businesses to: – compete fairly for government contracts; – establish partnerships; – demonstrate their capabilities to perform and diversify their business; and, – enter into supply chains.

• The 2009 Federal Framework for Aboriginal Economic Development included PSAB as a key element of strengthening Aboriginal entrepreneurship

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Overview

• Procurement Strategy for Aboriginal Business Policy (PSAB)

– Launched in 1996 to assist and support Aboriginal businesses to pursue and win federal procurement opportunities.

– 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 mandated to the implementation of PSAB on behalf of the federal government

– In close collaboration with PWGSC and TBS

– Implementation of FFAED commitments.

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Overview…

– Committed to working with Canada’s rapidly growing Aboriginal business sector:

– There are over 37 000 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.

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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 $5000

2. 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

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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

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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.

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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 set-asides.

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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;

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PSAB Tools…

– Review notifications in order to negotiate Aboriginal Set Aside opportunities under the Procurement Review Committee (contracts value between $2M – $100M) – In 2011, 243 procurement opportunities reviewed

– 11 already included set-aside – 31 were negotiated with contract authorities of which 12 were successful

– Advise via joint engagement on Comprehensive Land Claim Agreements and how it may apply to PSAB

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PSAB Designed for Success • In 2010, Aboriginal businesses were awarded 5,527 contracts valued at $459.55

million in 2009 and 5,234 contracts valued at $580.90 million in 2010, both through set-asides and open tender.

• 1,710 Aboriginal businesses are currently registered with the PSAB • In 2011-2012, the Aboriginal Procurement and Business Promotion (APBP) team

reached over 1,700 participants through: – 74 procurement-readiness training sessions; and, – 42 outreach and awareness sessions with government departments,

Aboriginal businesses, communities, organizations and the private sector. • Other uses of the Aboriginal Business Directory:

– Determine Aboriginal business capacity in specific sectors and advise other government departments;

– Promote/expose Aboriginal businesses to a variety of key stakeholders (federal, provincial, and private sector); and,

– Disseminate information (e.g. upcoming trade missions).

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PSAB Designed for Success

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PSAB Registration by Region

BC 231 NT 83 NU 198 ONT 454 QC 235 AB 146 MB 195 NB 21 NL 7 NS 33 SK 85 Yukon 19 PEI 3 Total 1,710

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. • 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

The Power of PSAB “There is an opportunity to build stronger Aboriginal business networks –

locally, regionally, and nationally.” --ABS, 2011

• Set-asides and other PSAB-enabled opportunities help develop Aboriginal

business capacity and generate revenue, employment and partnerships – Both the Province of Manitoba and the Province of Ontario, with the guidance of

PSAB officials, have established procurement strategies to improve the participation of Aboriginal businesses in provincial procurement

– The PSAB has served as the basis of federal-provincial collaboration on key initiatives such as the $400 million Sydney Tar Ponds Cleanup Project, which resulted in $71 million contracts for Aboriginal companies

– PSAB officials are working closely with the National Shipbuilding Secretariat at Public Works and Government Services Canada (PWGSC) to enhance Aboriginal participation in shipbuilding

– PSAB-registered businesses receive information on upcoming trade missions and shows in their industry sectors when opportunities arise

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The Power of PSAB The APBP team works closely with a number of partners on initiatives aimed at developing and promoting Aboriginal business, including: • Aboriginal Human Resource Council: collaborate in training businesses on

Aboriginal Procurement and organize Aboriginal Entrepreneurship Conference and Tradeshow

• Canadian Council for Aboriginal Business: discuss success and challenges faced by Aboriginal businesses and potential solutions

• Electric Sector Council: partnered in the development of a report to examine the Aboriginal procurement strategies employed in the electricity and renewable energy sectors

• Saskatchewan Potash: worked closely with provincial and Aboriginal partners to perform a feasibility study for the creation of a central Saskatchewan First Nation procurement business model

• Other government departments: agreements have been established (e.g. Aboriginal Business Directory housed in the Canadian Companies Capabilities database in Industry Canada)

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Making PSAB Work for You

• Register with PSAB to gain access to a number of different opportunities

– Register online through Industry Canada's Aboriginal Business Directory; or,

– Contact AANDC e-mail (saea-psab@aadnc-aandc.gc.ca) or by phone (1-800-400-7677) for more information

• Register in PWGSC’s Supplier Registration Inventory System to promote your business

• Participate in Supplier Development Activities • Regularly monitor MERX for procurement opportunities • For more information, please visit the PSAB website, contact a PSAB

coordinator, materiel managers or the PSAB team for more information – The Office of Small and Medium Enterprises also provides free seminars

on how to procure in the federal government

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THANK YOU!

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