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FILE NO: 3880-000-005
DATE: September 19, 1996
TO: Functional Heads, Administration/Finance of all Departments and Agencies
SUBJECT: ABORIGINAL BUSINESS PROCUREMENT POLICY PERFORMANCE OBJECTIVES
ALL DEPARTMENTS AND AGENCIES WITH A CONTRACTING BUDGET IN EXCESS OF $1 MILLION MUST DEVELOP MULTI-YEAR PERFORMANCE OBJECTIVES RELATING TO PROCUREMENTS FROM ABORIGINAL BUSINESSES AND DEVELOP RELATED REPORTING MECHANISMS.
(a) Estimated Number of Contracts Awarded
Departments and agencies must develop a performance objective specifying the number of contracts and sub-contracts to be awarded to Aboriginal firms and outlining the means to be used to increase the number of contracts.
(b) Estimated Dollar Value of Contracts Awarded
A combination of approaches may be used to develop this objective. First, a total value of contracts and sub-contracts to be awarded to Aboriginal businesses should be specified. In addition, specific contracts, or sectors and regions in which increased contract values will be sought, may be specified.
(c) Estimated Supplier Development Activities
In the context of ongoing supplier development activities in departments and agencies, describe what means the department or agency intends to take to increase representation of Aboriginal businesses, with specific references to regional activities where they exist.
(d) Estimated Supplier Inventories
It is acknowledged that the creation and maintenance of inventories of Aboriginal suppliers is a responsibility shared by DIAND with each department and agency. Each department and agency must describe what means it will take to increase its inventory, again with specific reference to regional activities.
R.J. Neville
Assistant Secretary and Assistant Comptroller General
Financial and Contract Management Sector
Attachments
Distribution: TB06, TB07, T004, T005, T006, T009, T010 T022, T023, T024, T035, T036, T040, T041, T161
1997
To the limited extent that the Department carries out supplier development activities, it will recognize, and include, Aboriginal suppliers in these activities. When Aboriginal suppliers present themselves, they will be informed of the procurement strategy for Aboriginal business (PSAB) and its potential impact. Departmental procurement staff will be advised of the existence of the PSAB and Departmental performance objectives and will be sensitized to the requirement to develop aboriginal supplier capacity to do business with the Department.
1998
The Department will continue activities described above for 1997. Special efforts will be made to develop an aboriginal supplier base in the Western Region, by advertising in newspapers and letters to Aboriginal organizations. In addition, it will develop, in the context of its normal supplier development activities, modules and material to be directed at potential aboriginal suppliers.
1999
The Department will continue activities described above for 1997 and 1998. In addition, it will present, in the context of its normal supplier development activities, modules or material to potential aboriginal suppliers. As well, it will investigate Aboriginal supplier capacity in the informatics services area of the National Capital Region.
1997
Departmental procurement staff will be advised of the performance objective of increasing the number of Aboriginal firms on its supplier inventories. The Department will investigate electronic linkages to the DIAND database for its procurement personnel. The Department will amend its supplier registration process to enable Aboriginal suppliers to identify themselves.
1998
The Department, in close cooperation with DIAND, will develop lists of Aboriginal suppliers, or implement direct electronic linkages with a recognized database of Aboriginal suppliers, and allow all Departmental procurement personnel to access this inventory. A special inventory of Aboriginal construction firms will be developed in our Western Region.
1999
The Department will review the inventory of Aboriginal suppliers it is using and confirm that this inventory is current. This year, special emphasis will be given to developing an inventory of Aboriginal printing firms.
1997
The Department will communicate the requirements of the PSAB to all its procurement personnel. The Department will set a performance objective of entering into xx contracts with Aboriginal suppliers.
1998
The Department will review contracts awarded to Aboriginal suppliers on a commodity by commodity basis. Special efforts will be made, where Aboriginal supplier capacity exists, to increase Aboriginal supplier representation in those commodity areas where there is currently little or no representation. The Department will set a performance objective of entering into xx contracts with Aboriginal suppliers.
1999
The Department will review its contracting data to determine if Aboriginal business is adequately represented in contracts at all dollar levels, for both competitive and non-competitive contracts and standing offers. If necessary, it will make special efforts to increase representation of Aboriginal suppliers in areas where they are judged to be represented inadequately. The Department will set a performance objective of entering into xxx contracts with Aboriginal suppliers.
1997
The Department will endeavour to award contracts valued at $ xx to Aboriginal business.
1998
The Department will endeavour to award contracts valued at $ xxx to Aboriginal business. Included in this amount will be contracts, valued at $ xx, to be awarded to Aboriginal contractors in the construction sector in our Western Region.
1999
The Department will endeavour to award contracts valued at $ xxx to Aboriginal business. Included in this amount will be contracts, valued at $ xx, to be awarded to Aboriginal printing suppliers in our National Capital Region.
Who is eligible?
An Aboriginal business, which can be:
in which Aboriginal persons have at least 51 percent ownership and control,
OR
A joint venture consisting of two or more Aboriginal businesses or an Aboriginal business and a non-Aboriginal business(es), provided that the Aboriginal business(es) has at least 51 percent ownership and control of the joint venture.
When an Aboriginal business has six or more full-time employees at the date of submitting the bid, at least thirty-three percent of them must be Aboriginal persons, and this ratio must be maintained throughout the duration of the contract.
The bidder must certify in its submitted bid that it is an Aboriginal business or a joint venture constituted as described above.
Are there any other requirements attached to bidders in the Set-Aside Program for Aboriginal Business? - Yes, three:
How must the business prove that it meets the requirements?
It is not necessary to provide evidence of eligibility at the time the bid is submitted. However, the business should have evidence of eligibility ready in case it is audited.
The civil consequences of making an untrue statement in the bid documents, or of not complying with the requirements of the Program or failing to produce satisfactory evidence to Canada regarding the requirements of the Program, may include: forfeiture of the bid deposit; retention of the holdback; disqualification of the business from participating in future contracts under the program; and/or termination of the contract. In the event that the contract is terminated because of an untrue statement or non-compliance with the requirements of the Program, Canada may engage another contractor to complete the performance of the contract and any additional costs incurred by Canada shall, upon the request of Canada, be borne by the business.
What evidence may be required from the business?
Evidence of ownership and control of an Aboriginal business or joint venture may include incorporation documents, shareholders' or members' register; partnership agreements; joint venture agreements; business name registration; banking arrangements; governance documents; minutes of meetings of Board of Directors and Management Committees; or other legal documents.
Ownership of an Aboriginal business refers to "beneficial ownership" i.e. who is the real owner of the business. Canada may consider a variety of factors to satisfy whether Aboriginal persons have true and effective control of an Aboriginal business. (See Appendix A for a list of the factors which may be considered by Canada.)
Where an Aboriginal business has six or more full-time employees at the date of submitting the certification and is required by Canada to substantiate that at least thirty-three percent of the full-time employees are Aboriginal, the business must, upon request by Canada, immediately provide a completed Owner/Employee Certification form for each full-time employee who is Aboriginal.
Evidence as to whether an employee is or is not full-time and evidence as to the number of full-time employees may include payroll records, written offers for employment, and remittance and payroll information maintained for Revenue Canada purposes as well as information related to pension and other benefit plans.
A full-time employee, for the purpose of this program, is one who is on the payroll, is entitled to all benefits that other full-time employees of the business receive, such as pension plan, vacation pay and sick leave allowance, and works at least 30 hours a week. It is the number of full-time employees on the payroll of the business at the date of bid submission that determines the ratio of Aboriginal to total employees of the business for the purpose of establishing eligibility under the Program.
Owners who are Aboriginal and full-time employees who are Aboriginal must be ready to provide evidence in support of such status. The Owner/Employee Certification to be completed by each owner and full-time employee who is Aboriginal shall state that the person meets the eligibility criteria and that the information supplied is true and complete. This certification shall provide the person's consent to the verification of the information submitted.
Evidence of the proportion of work done by subcontractors may include contracts between the contractor and subcontractors, invoices, and paid cheques.
Evidence that a subcontractor is an Aboriginal business (where this is required to meet the minimum Aboriginal content of the contract) is the same as evidence that a prime contractor is an Aboriginal business.
An Aboriginal person is an Indian, Metis
or Inuit
who is ordinarily resident in Canada.
Evidence of being an Aboriginal person will consist of such proof as:
Evidence of being resident in Canada includes a provincial or territorial driver's licence, a lease or other appropriate document.
For further information on the Set-Aside Program for Aboriginal Business, contact the Access to Federal Procurement Directorate in the Department of Indian Affairs and Northern Development at (819) 997-8383 or (819) 997-8746 or fax (819) 994-0445.
A bidder who submits, under this program, a bid or proposal in response to a solicitation must complete and submit this certification. Failure to submit this certification will result in the proposal's being found non-compliant.
1. | (i) | I,
_________________________________________ (Name
of duly authorized representative of business) hereby
certify that ______________________________ (Name of business) meets, and shall continue to meet throughout the duration of the contract, the requirements for this program as set out in the attached document entitled "Requirements for the Set-Aside Program for Aboriginal Business", which document I have read and understand. |
(ii) | The aforementioned business agrees to ensure that any subcontractor it engages with respect to the contract shall, if required, satisfy the requirements set out in "Requirements for the Set-Aside Program for Aboriginal Business." | |
(iii) | The aforementioned business agrees to provide to Canada, immediately upon request, information to substantiate a subcontractor's compliance with this program. |
PLEASE CHECK THE APPLICABLE BOXES IN 2 AND 3 BELOW
2. | (i) | The aforementioned business is an Aboriginal business which is a sole proprietorship, band, limited company, co-operative, partnership or not-for-profit organization, [ ] |
OR | ||
(ii) | The aforementioned business is a joint venture between two or more Aboriginal businesses or an Aboriginal business and a non-Aboriginal business. [ ] | |
3. | The Aboriginal business or businesses have: | |
(i) | fewer than six full-time employees [ ] | |
OR | ||
(ii) | six or more full-time employees [ ] |
4. | The aforementioned business agrees to immediately furnish to Canada, such evidence as may be requested by Canada from time to time, corroborating this certification. Such evidence shall be open to audit during normal business hours by a representative of Canada, who may make copies and take extracts from the evidence. The aforementioned business agrees to provide all facilities for audits and to furnish information requested by Canada with respect to the certification. | ||
5. | It is understood that
the civil consequences of making an untrue statement in the bid
documents, or of not complying with the requirements of the
Program or failing to produce satisfactory evidence to Canada
regarding the requirements of the Program, may include:
forfeiture of the bid deposit; retention of the holdback;
disqualification of the business from participating in future
contracts under the Program; and/or termination of the contract.
In the event that the contract is terminated because of an untrue
statement or non-compliance with the requirements of the Program,
Canada may engage another contractor to complete the performance
of the contract and any additional costs incurred by Canada
shall, upon the request of Canada, be borne by the aforementioned
business.
|
||
6. |
Date |
Signature | |
Place |
Title (Duly authorized representative of business) | ||
For: | |||
Name of Business |
Factors that may be considered in determining whether Aboriginal persons have at least 51% ownership and control of an Aboriginal business include:
SET-ASIDE PROGRAM FOR ABORIGINAL BUSINESS
1. I, ________________________________________________, am an | ||
Name |
||
owner and/or full-time employee of_____________________________________, | ||
Name of business |
||
and an Aboriginal person, as described in the document "Requirements for the Set-Aside Program for Aboriginal Business". | ||
2. I certify that the above
statement is true and consent to its verification upon the
request of Canada.
|
||
Date
|
Signature of owner and/or employee |
|
Place |