Indigenous Requirements in Government of Canada Procurement: What Vendors Need to Know

The Government of Canada is committed to ensuring that Indigenous businesses and communities are meaningfully included in federal procurement. This commitment has evolved from voluntary participation targets to formal Indigenous procurement requirements that vendors must understand to stay compliant and competitive.

1. The 5% Indigenous Procurement Target

In 2021, the federal government announced a mandatory 5% target — meaning that at least 5% of the total value of federal contracts must be awarded to Indigenous businesses. This target is now being implemented across departments, with specific reporting obligations for contracting authorities.

For vendors, this means that opportunities with an Indigenous participation component are becoming increasingly common — and often prioritized.

2. What Counts as an Indigenous Business

Under federal policy, an Indigenous business must:

• Be at least 51% owned and controlled by Indigenous persons; and

• If incorporated, have at least 33% of full-time employees identifying as Indigenous when the contract is awarded.

These businesses must also be registered on Indigenous Services Canada’s Indigenous Business Directory (IBD) to qualify for designated opportunities.

3. Types of Indigenous Procurement Opportunities

• Set-Asides: Contracts open exclusively to Indigenous businesses.

• Joint Ventures: Partnerships between Indigenous and non-Indigenous companies that meet ownership and participation thresholds.

• Subcontracting Requirements: Some tenders require non-Indigenous primes to subcontract a portion of the work to an Indigenous business.

4. What This Means for Non-Indigenous Vendors

Non-Indigenous suppliers can still participate — but collaboration is key. Building relationships with verified Indigenous partners strengthens competitiveness in bids that include Indigenous participation requirements.

Platforms like Bids Advantage help vendors:

• Identify opportunities containing Indigenous requirements.

• Locate verified Indigenous businesses through nearby listings.

• Track compliance within proposal submissions.

5. Moving Forward

Procurement isn’t just about price anymore — it’s about partnership, representation, and long-term community impact. Understanding Indigenous procurement policies isn’t optional; it’s now a critical part of doing business with the Government of Canada.

At Bids Advantage, we’re committed to helping every vendor — Indigenous and non-Indigenous alike — find opportunities, meet requirements, and build meaningful, compliant partnerships.