Directive on the Management of Procurement

The directive ensures that procurement of goods, services and construction obtains the necessary assets and services that support the delivery of programs and services to Canadians, while ensuring best value to the Crown.
Date modified: 2022-04-25

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The requirements in the Directive on the Management of Procurement take effect on May 13, 2021 and replace the following instruments:

The Directive on the Management of Procurement has been amended to include a new Appendix E - Mandatory Procedures for Contracts Awarded to Indigenous Businesses effective as of April 1, 2022. It was developed in collaboration with Indigenous partners and describes procedures to address the Government of Canada’s requirement that a mandatory minimum target of 5% of the total value of contracts is awarded to Indigenous businesses annually. The prior Appendix E: Definitions has moved to Appendix F.

Appendix E: Mandatory Procedures for Contracts Awarded to Indigenous Businesses

The Government of Canada is committed to economic reconciliation with Indigenous peoples and will contribute to improved socio-economic outcomes by increasing opportunities for First Nations, Inuit and Métis businesses through the federal procurement process.

These mandatory procedures describe:

  • procedures to address the Government of Canada’s commitment that a mandatory minimum target of 5% of the total value of contracts is awarded to Indigenous businesses (“5% target”) annually;
  • procedures for:
    • public disclosure of contracts awarded to Indigenous businesses,
    • reporting on procurement planning and performance against the 5% target

Requirements for verifying Indigenous businesses for the purposes of these procedures are available in the Indigenous Business Directory .

This commitment also supports the requirements set out in subsection 4.1.3.6 of the Treasury Board Policy on the Planning and Management of Investments to uphold the obligations of the Crown with respect to Indigenous peoples. These obligations include Canada’s procurement obligations arising from multiple comprehensive land claims agreements (CLCAs). In the event of a conflict between a requirement in these mandatory procedures and a legal obligation, including an obligation under a CLCA, the legal obligation will apply.

These procedures should also be read in conjunction with the Treasury Board Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area . In the event of a conflict between a requirement in these mandatory procedures and a requirement in the Directive on Government Contracts, Including Real Property Leases, in the Nunavut Settlement Area , the requirement in the directive will apply.

Departments are to meet or exceed the 5% target no later than the fiscal year-end of 2024–25, as set out in the schedule prescribed by Indigenous Services Canada for when departments are required to meet the 5% target. This schedule is based on an assessment of departments’ levels of readiness to meet the 5% target using prior departmental procurement plans related to the Procurement Strategy for Indigenous Business .

E.1 Effective date

  • E.1.1These procedures take effect on April 1, 2022.

E.2 Mandatory procedures

  • E.2.1These procedures provide details on the requirements set out in subsection 4.1.2.1 of the Treasury Board Directive on the Management of Procurement for departmental senior designated officials for the management of procurement to establish oversight, planning and reporting mechanisms of departmental procurement management frameworks that support the Government of Canada commitment for a mandatory minimum target for contracts awarded to Indigenous businesses as a proportion of the total value of contracts awarded (“mandatory minimum target”).
  • E.2.2Mandatory procedures are as follows:

    Planning for contracts awarded to Indigenous businesses

    • E.2.2.1Departmental procurement management frameworks are to include oversight, planning and reporting mechanisms that:
      • E.2.2.1.1Examine planned procurements within their organizations to identify opportunities for Indigenous businesses;
      • E.2.2.1.2Respond to Indigenous Services Canada’s annual call letter (see subsection E.3.5.2) by submitting a deputy head–approved procurement plan for meeting the mandatory minimum target, including deputy head–approved exceptions, the contents of which are prescribed by Indigenous Services Canada, by March 31 for the following fiscal year, unless otherwise specified by Indigenous Services Canada; and
      • E.2.2.1.3Identify to common service providers, as defined in the Treasury Board Policy on the Planning and Management of Investments , the procurement tools required of them to support achievement of procurement plans for meeting the mandatory minimum target, as appropriate.

      Providing opportunities for Indigenous businesses

    • E.2.2.2Departmental procurement management frameworks are to include oversight, planning and reporting mechanisms that:
      • E.2.2.2.1Support the participation of Indigenous businesses to compete for contract awards;
      • E.2.2.2.2Support the participation of Indigenous businesses to compete for subcontracting arising from a contract;
      • E.2.2.2.3Maintain a process for seeking deputy head–approved exceptions to exclude the value of contracts from the calculation of the mandatory minimum target (see subsection E.2.2.3.2.1); such approvals may not be delegated;
      • E.2.2.2.4Maintain a process that requires Indigenous Services Canada’s verification of an Indigenous business in accordance with the Indigenous Business Directory , for the purposes of these procedures;
      • E.2.2.2.5Ensure fulfillment of the requirements of the Procurement Strategy for Indigenous Business ; and
      • E.2.2.2.6Ensure the recording of timely, accurate and complete contracting information on contracts awarded to Indigenous businesses in conjunction with Appendix C.2 of this directive and when reporting to Parliament, in the format specified by the Treasury Board of Canada Secretariat and Indigenous Services Canada.

      Reporting on contracts awarded to Indigenous businesses

    • E.2.2.3Departmental procurement management frameworks are to include oversight, planning and reporting mechanisms that ensure the following:
      • E.2.2.3.1The total value of contracts awarded to Indigenous businesses annually is calculated so that:
        • E.2.2.3.1.1The value amount includes the total value of contracts awarded to Indigenous businesses, including contract amendments, during the fiscal year, and includes contracts that were entered into by acquisition cards valued over $10,000;
        • E.2.2.3.1.2The value amount may include the total value of subcontracting to Indigenous businesses that was committed to by non-Indigenous contractors at the time of contract award or contract amendment during the fiscal year; and
        • E.2.2.3.1.3The value amount may include the total value of contracts awarded to Indigenous businesses, including contract amendments, during the fiscal year that were entered into by acquisition cards valued at $10,000 or less;
      • E.2.2.3.2When determining the proportion of contracts awarded to Indigenous businesses:
        • E.2.2.3.2.1The proportion is to be calculated as an amount of the total value of contracts awarded, including contract amendments, during the fiscal year, excluding exceptions that were deputy-approved; this calculation may exclude the total value of contracts awarded, including contract amendments, during the fiscal year that were entered into by acquisition cards valued at $10,000 or less;
      • E.2.2.3.3Calculations in subsections E.2.2.3.1 and E.2.2.3.2 apply to contracts, as defined in the Treasury Board Policy on the Planning and Management of Investments, and the mandatory minimum target is not to be applied to each individual contract;
      • E.2.2.3.4Responses to Indigenous Services Canada’s annual call letter (see subsection E.3.5.3) indicate that reports on performance against the mandatory minimum target have been approved by the department’s deputy head and submitted to Indigenous Services Canada within six months after fiscal year-end for the purpose of inclusion in government-wide reporting; such approvals may not be delegated; and
      • E.2.2.3.5Information on departmental performance is validated against the mandatory minimum target and is published within 12 months after fiscal year-end, in coordination with Indigenous Services Canada’s publication on government-wide performance (see subsection E.3.5.4).

E.3 Roles of other government organizations

  • E.3.1This section identifies other key government organizations in relation to these mandatory procedures. In and of itself, this section does not confer any authority.
  • E.3.2The Treasury Board of Canada Secretariat is responsible for the following:
    • E.3.2.1Ensuring that government-wide training and guidance are developed and maintained, in collaboration with Indigenous Services Canada, Public Services and Procurement Canada, and the Canada School of Public Service, to support departments in meeting these procedures’ requirements; and
    • E.3.2.2Ensuring that departments’ results achieved are reported to parliamentarians.
  • E.3.3Public Services and Procurement Canada is responsible for the following:
    • E.3.3.1Developing and evolving procurement tools as part of its mandate, including standing offers, supply arrangements, standard clauses and templates, that pertain to the participation of Indigenous businesses; and
    • E.3.3.2Providing guidance to the functional procurement community to support departments in meeting these procedures’ requirements.
  • E.3.4Shared Services Canada is responsible for the following:
    • E.3.4.1Providing services as described in subsection 5.3.1 of the Treasury Board Directive on the Management of Procurement ; and
    • E.3.4.2Developing and evolving procurement tools, such as standing offers, supply arrangements, and other tools that pertain to the participation of Indigenous businesses when implementing activities pursuant to section 7 of the Shared Services Canada Act , as described in subsection 5.3.2 of the Treasury Board Directive on the Management of Procurement .
  • E.3.5Indigenous Services Canada is responsible for the following:
    • E.3.5.1Prescribing the schedule for when departments are to meet the mandatory minimum target based on an assessment of departmental level of readiness to meet the mandatory minimum target using prior departmental procurement plans related to the Procurement Strategy for Indigenous Business ;
    • E.3.5.2Issuing an annual call letter by the end of the calendar year, unless otherwise specified by Indigenous Services Canada, that requires deputy heads to submit procurement plans for meeting the mandatory minimum target for the following fiscal year;
    • E.3.5.3Issuing an annual call letter by no later than two months after fiscal year-end, unless otherwise specified by Indigenous Services Canada, for deputy heads to submit reports on performance against the mandatory minimum target;
    • E.3.5.4Publishing information on government-wide performance against the mandatory minimum target within 12 months after fiscal year-end;
    • E.3.5.5Implementing and advising on the Procurement Strategy for Indigenous Business ; and
    • E.3.5.6Assisting in identifying and building Indigenous business capacity and supporting coordinated government-wide outreach and assistance to Indigenous businesses.
  • E.3.6Common service providers are responsible for the following:
    • E.3.6.1Ensuring that information on contracts awarded to Indigenous business is shared with requisitioning departments no later than three months after fiscal year-end in order to ensure that requisitioning departments report on contracts awarded on their behalf by common service providers.

E.4 Enquiries

For interpretation of any aspect of these mandatory procedures, contact the Treasury Board of Canada Secretariat .

For information regarding the Government of Canada Procurement Strategy for Indigenous Business , contact Indigenous Services Canada at indigenousprocurement@sac-isc.gc.ca .

For information regarding the Government of Canada’s procurement processes and practices, contact Public Services and Procurement Canada at TPSGC.PAApprovisionAutochtone-APIndigenousProc.PWGSC@tpsgc-pwgsc.gc.ca .

For information regarding services provided by Shared Services Canada, contact Shared Services Canada at SSC.pvr-arf.SPC@Canada.ca .

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