Billions in Indigenous Contracts Mostly Going to Ottawa Firms

This story is a collaboration between the Investigative Journalism Foundation and APTN News, with assistance from students at First Nations University of Canada and University of Regina.

A recent joint investigation by IJF reveals that billions of dollars in federal contracts aimed at helping Indigenous businesses across Canada are primarily benefiting around two dozen companies based in the Ottawa area.

In recent years, over 60 per cent of nearly $1 billion in contracts each year, meant to support Indigenous entrepreneurs and their communities, have remained concentrated in the capital.

Regions with significant Indigenous populations like Manitoba, B. C., Saskatchewan, and Alberta have largely been excluded from these opportunities, according to an analysis of federal data by IJF.

Indigenous leaders and researchers believe this disparity arises from the poor design of the Procurement Strategy for Indigenous Business (PSIB), which intends for at least five per cent of most federal contracts to go to Indigenous-owned companies nationwide. They argue that PSIB fails to enable firms outside Ottawa to compete effectively against established suppliers.

Shannin Metatawabin, CEO of the National Aboriginal Capital Corporations Association (NACCA), stated that these findings validate what many Indigenous business owners have suspected about this program.

For three decades now, he noted, “the Ottawa region has benefited from the majority of [these] procurement contracts.”

Indigenous Services Canada, which oversees the PSIB, provided data for this investigation and mentioned that it’s working on raising awareness about the program across Canada.

“ISC, via Procurement Assistance Canada, conducts national awareness sessions to encourage Indigenous businesses from across Canada to register,” said a spokesperson. Other initiatives involve assisting Indigenous businesses with navigating federal processes and funding organizations that promote awareness.

“The Government of Canada is committed to fostering Indigenous economic development and entrepreneurship,” she continued. “The Procurement Strategy for Indigenous Business is key to advancing these goals – it’s vital we get this right. Where adjustments are necessary, we will make changes to ensure meaningful impact.”

The PSIB has come under increased scrutiny from both leaders and researchers within Indigenous communities. One group Metatawabin supports is pushing for a new system where they would determine which companies qualify as being truly Indigenous-owned and -controlled as required by PSIB. Conversations about this change are ongoing.

This push followed reports last year detailing cases where firms misrepresented themselves as being Indigenous or used false partnerships to secure access to PSIB contracts. In October, MPs suggested ISC adopt an approach led by Indigenous people for verifying Indigeneity.

The findings from this investigation highlight regional disparities showing that mainly a select group of Ottawa-based firms identifying as Indigenous have gained benefits from the program-most being involved in IT consulting.

On the other hand, federal contracts awarded to non-Indigenous companies are distributed more evenly across regions reflecting population shares according to IJF’s research. Company locations were verified using declarations made to Indigenous Services Canada (ISC) along with cross-referencing Treasury Board contract data-the same source used for non-Indigenous firms.

Ian Lee, an associate professor specializing in strategy and public policy at Carleton University commented on the findings stating that “Sunshine is the most powerful disinfectant.”

While there aren’t many limits on federal spending authority he pointed out making regional differences known provides suppliers throughout Canada a better opportunity to compete-and advocate for change.

This investigation builds upon decades worth of attempts by federal officials aiming at broadening reach nationally while also responding questions raised by indigenous leaders regarding whether it genuinely aids First Nations Métis or other indigenous groups overall interests.

The program was initiated back in 1996 originally named Procurement Strategy For Aboriginal Business (PSAB) coinciding with government digitization efforts beginning. Ottawa region IT firms were among those early winners securing contracts through its implementation

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The question regarding local advantages arose almost immediately when one internal report dated 1999 requested performance metrics focusing on indirect socioeconomic impacts observed within communities affected directly or indirectly

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You could see repeated attempts year after year geared towards attracting broader participation amongst indigenous-run businesses seeking inclusion within procurement opportunities available through various channels offered up by government departments

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A civil servant instruction manual released back during 2011 revealed ongoing discussions held nationwide reaching out proactively towards Aboriginal enterprises informing them about what possibilities existed relating specifically pertaining certain contractual guidelines tied into Federal spending protocols

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However obstacles persisted rendering them less effective; records indicated only two percent succeeded gaining traction between years spanning twenty fifteen till eighteen according likewise referenced ISC report citing top purchasing categories including information technology management related services regularly encountered difficulties accessing skilled workforce resources necessary infrastructure such roads connectivity plus barriers surrounding obtaining financing needed grow their operations longer term wise.

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The narrative shifted subtly until recently when Ottawa revamped PSAB transforming it into modern-day version called , PSIB mandating specified percentage allocations targeting greater inclusion concerning indigenous partners moving forward onto projects undertaken beginning next financial cycle onward.

Subsequently more than thousand individuals signed up thereby leading total value associated soared upwards fourfold climbing skyward past marks reached earlier levels reported just four years prior without comprehensive evaluations conducted assessing trends emerging during time intervals elapsed subsequently

Veldon Coburn who serves alongside academia Mc Gill University voiced sentiments experienced previous roles held previously indicating likely preference among officials favoring localized solutions sourcing nearer areas providing quicker returns savings efficiencies achieved versus engaging farther reaches requiring considerable work establishing relationships beforehand bringing fresh faces onboard especially small scale enterprises struggling remain competitive marketplace faced daily challenges encountering larger players dominating landscape causing major disruptions )

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Interviews gathered involving native businesspeople yielded nuanced insights portraying struggles faced paralleling similar ones shared experiences illustrating inability navigate pathways successfully land prized government deals missing out altogether despite countless efforts made pursuing routes believed viable lead success nonetheless presenting obstacles seem insurmountable too often left behind cut off those needing help desperately )

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To gauge effects stemming directly attributable conditions surrounding existence operation mechanics implemented journalists collaborating institutions reached out speaking personally contractors situated province Saskatchewan exclusively receiving paltry amounts compared allotments dispersed elsewhere leaving empty-handed feeling overlooked marginalized subjected limited scopes offered )

Daryl Wright member hailing Muscowpetung First Nation oversees Seed 2 Leaf Environmental Consulting expressed dismay disappointment lingering after landing scant few tasks entrusted him challenging competing Parks Canada’s growing needs capabilities potential unable fulfill expectations placed workloads prioritized wrong ways )

He emphasized necessity creating further openings proposing actions should arise suit demands arising facing communities looking engage positively uplifting locals encouraging growth sustainable manner founded integrity accountable practices reflected backgrounds widely understood well )

Despite progress already shown nonetheless gaps remain entrenched adversely affecting smaller operators lacking capacity gain foothold industry prevalent alternative multinationals controlling vast swaths real estate limiting choices availability existent )

Navigating barriers often proves arduous both sides encountered alike concluding resulting disparities witnessed persistently hard lesson learned hard fought knowledge accrued throughout journey overcoming systemic obstacles sets pace defining future ambitions )

“Many individuals simply cannot fathom why local talent unavailable given proximity” remarked Sarain Lafond executive director spearheading provincial initiative designed address inventory shortcomings visible experience gained firsthand noting importance consistent communications play informing strategies enhance efficiencies optimize outcomes realized collectively.)

If you examine statistics closely stark contrasts emerge revealing Ontario’s case stands alone witnessing staggering proportions exceeding ninety percent designated towards recipients found within immediate vicinity capital city itself notably demonstrating severe inequalities present widespread distributions occurring alternatively desirable sectors requiring attention rectified ongoing basis evaluating concerns voiced frequently addressed forum surrounding matters surfacing regularly since inception remains vital resolution sought promptly moving forward priorities highlighted urgently signaled comprehension necessary understand continue evolve quickly tailor responses addressing unique situations arising therein.)

Sooner than later proactive measures taken revise reallocate funds thoughtfully aligned rectify discrepancies existing overall mandates exerted going forth ensuring equitable distribution allows everyone participate equally sharing rewards benefits derived partnership developed harmoniously.”

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