Q. Who does the PSAB apply to?

A. The PSAB applies to all federal government departments and agencies. Federal Crown Corporations are encouraged to adopt similar measures to increase the amount of contracting they do with Aboriginal business.

Q. What is the Procurement Strategy for Aboriginal Business (PSAB)?

A. The PSAB is a strategy that was launched by the federal government to increase the number of Aboriginal suppliers bidding for, and winning, federal contracts. Basically, the PSAB makes it easier for the government and Aboriginal firms to do business with each other. This is being achieved in a variety of ways. For example, certain contracts are being set aside for competition among Aboriginal businesses. The strategy promotes sub-contracting to Aboriginal firms and encourages Aboriginal firms to form joint ventures with other Aboriginal and non-Aboriginal businesses.

Q. What is procurement?

A. Procurement is a term used in the government to describe the act of acquiring goods, services and construction. In the context of the PSAB, procurement equates to contracting opportunities.

Q. Why is the PSAB necessary?

A. The government recognizes that when it comes to federal government procurement, Aboriginal businesses pursuing and winning contracts are under-represented. The PSAB aims to change this by increasing the number of Aboriginal firms participating in the federal procurement process. Successful Aboriginal firms create jobs for Aboriginal and non-Aboriginal people, and help strengthen local economies.

Q. Who is eligible under the PSAB?

A. The PSAB is open to all Aboriginal businesses, incorporated or not. A business includes a sole proprietorship, limited company, co-operative, partnership, or not-for-profit organization. To be considered and Aboriginal business, a firm must meet the following criteria: (1) At least 51 percent of the firm is owned and controlled by Aboriginal people, and, (2) At least one third of the firm's employees, if it has six or more full-time staff, are Aboriginal. If a firm is starting a joint venture or consortium, at least 51 percent of the joint venture or consortium must be controlled and owned by an Aboriginal business or businesses, as defined above.

Q. What does "Aboriginal" mean for the purpose of the PSAB?

A. For the purposes of the PSAB "Aboriginal" means a Status or Non-Status Indian, Metis or Inuit person who is a Canadian citizen and resident in Canada.

Q. How do bidders certify that they meet the PSAB criteria?

A. When a firm bids for a contract under the PSAB, it must complete and sign the form entitled "Certification Requirements for the Set-Aside Program for Aboriginal Business." An Aboriginal bidder must provide proof of eligibility upon request. Indian and Northern Affairs Canada (INAC) audits Aboriginal supplier certifications on a regular basis.

Q. Is funding available to assist Aboriginal businesses through the PSAB?

A. No. The PSAB assists businesses by increasing the amount of contracting they do with federal departments and agencies.

Q. Is it true that all government departments and agencies now have to purchase three percent of their goods and services from Aboriginal firms?

A. No, the Government of Canada has not set fixed targets for increased contracting with Aboriginal business. Departments and agencies that purchase more than $1 million annually in goods, services and construction are currently establishing their own performance objectives for increased procurement with Aboriginal suppliers.

Q. How does the Government of Canada find suppliers?

A. Typically, federal departments and agencies find suppliers by:

• listing requirements on MERX, an electronic tendering system. As a general rule, the federal government uses MERX to advertise the following opportunities:
• • goods, services and selected science requirements valued at $25,000 or more;
  • construction valued at $60,000 or more;
  • printing valued at $10,000 or more;
  • communication services with a value of $50,000 or more;
  • advertise in newspapers; and
  • refer to their source lists.

Federal departments or agencies seeking Aboriginal suppliers refer to Aboriginal business directories, in Contracts Canada's Supplier Registration Information (SRI) and Industry Canada's, Strategis, Aboriginal Business Directory, an electronic inventory of Aboriginal suppliers in Canada. These databases are available on PSAB's Web site at http://www.ainc-inac.gc.ca/saea-psab/index_e.html.

Aboriginal firms that meet the PSAB eligibility requirements are strongly encouraged to register in the databases.

Q. How can Aboriginal firms market their goods and services to the federal government?

A. The Government of Canada recommends that Aboriginal suppliers register with Contracts Canada's (SRI) and Industry Canada's, Strategis, Aboriginal Business Directory, which is available on the Internet through PSAB's Web site at http://www.ainc-inac.gc.ca/saea-psab/index_e.html. Firms can register on-line or by contacting the 1-800 numbers listed on the website. If they are already registered, firms should remember to keep their information up to date.

A firm should also contact the nearest Public Works and Government Services (PWGSC) office to describe the goods and services it provides, indicating that it meets the PSAB requirements. PWGSC handles a large portion of contracting opportunities within the federal government. PWGSC also maintains supplier source lists for the purchase of goods and services under $25,000 as well as separate source lists for low-dollar value purchases in the areas of construction, architecture and engineering services.

A firm should also promote itself, on a one-on-one basis, with representatives of departments and agencies that may require its products or services. This way, a firm can tell government representatives about its company and ask to be included in the department's supplier source lists, if applicable.

Q. Does registering on the Aboriginal Supplier Inventory entitle Aboriginal firms to federal government contracts?

A. No. Registering your company does not guarantee government contracts. The databases are valuable tools for government buyers and other interested parties who are looking for Aboriginal businesses that can supply the goods and services they need. Having a profile appear on the databases will increase a company's visibility, but a company should see it as only one step in its marketing plan.

Q. What are PSAB set-asides?

A. Under the PSAB the Government of Canada is reserving, or "setting aside", certain contracts exclusively for competition among Aboriginal businesses. There are two kinds of PSAB set-asides: mandatory and voluntary.

A mandatory set-aside policy applies to all contracts that serve a primarily Aboriginal population (i.e., at least 80 percent) and that are worth more than $5,000.

Voluntary set-asides may be applied to other contracts by federal buyers whenever practical.

Q. How do PSAB set-asides work?

A. When a contract is reserved for Aboriginal competition, the department or agency indicates in its advertisement or request for proposal that the requirement is set aside for Aboriginal suppliers in accordance with the PSAB.

Bids are prepared and submitted by Aboriginal businesses, and are evaluated in keeping with the principles of federal government contracting: fairness, openness and best value for the Canadian public.

Q. Is a PSAB set-aside the same thing as a sole source contract?

A. No. A sole source contract is used only if it is not in the public's interest to solicit bids, or if only one person or firm is capable of performing the contract. The PSAB set-aside process, on the other hand ordinarily involves competitive bidding among Aboriginal firms.

Q. Are Aboriginal firms restricted to bidding on only those federal contracting opportunities set aside under the PSAB?

A. No. Aboriginal firms are strongly encouraged to pursue any federal contract that they feel they can satisfy.

Q. If a PSAB set-aside contract serves a particular Aboriginal community, is the bidding reserved for companies from that community?

A. No, any Aboriginal business may bid on any PSAB set-aside contract that it believes it can satisfy.

Q. Can an Aboriginal firm that wins a contract under the PSAB sub-contract out part of the work to an Aboriginal or non-Aboriginal firm?

A. Yes, as long as 33 percent of the total value of the work performed under the contract is performed by an Aboriginal 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.

Q. Should Aboriginal businesses consider pursuing other government markets?

A. Yes, many more opportunities exist outside the federal government. A firm should also consider opportunities with Crown corporations (federal and provincial), provinces and municipalities. It may also wish to explore international opportunities.

Q. Should an Aboriginal firm consider joint venture opportunities?

A. Pooling resources with other Aboriginal or non-Aboriginal firms can often be helpful in bidding for and executing government contracts. Suppliers should ask their regional DIAND contact about the joint venture opportunities in their sector or industry.

Q. Do Aboriginal firms need to provide financial security to bid on federal government contracts?

A. Contracting officers determine if bid security is needed for procurements on a case by case basis.