Overview

Doing Business with the Federal Government

Each year, the Federal Government spends about $10 billion on goods and services, including construction. However, you don't have to be a big firm to do business with the government. In fact, most government contracts are valued at less than $100,000.

Small and medium-sized businesses of all kinds have found that federal contracting can be an important market for their products and services. Aboriginal firms have traditionally been under-represented in this sector. The Procurement Strategy for Aboriginal Business (PSAB) has been designed to encourage federal officials and Aboriginal firms to do more business together.

The Procurement Strategy for Aboriginal Business

Under the Procurement Strategy, contracts that serve a primarily Aboriginal population are automatically set aside for competition among qualified Aboriginal businesses. Federal employees are also encouraged to voluntarily set aside opportunities for competition among Aboriginal businesses whenever practical.

Aboriginal businesses can compete for federal contracts that are open to all qualified suppliers, as well as those which are set aside for competition among qualified Aboriginal suppliers.

Who Qualifies

The PSAB is open to all Aboriginal businesses, including sole proprietorships, limited companies, cooperatives, partnerships, and not-for-profit organizations. To be considered an Aboriginal business:

• at least 51 percent of the firm must be owned and controlled by Aboriginal people,
• and if the firm has six or more full-time staff, at least one third of the employees must be Aboriginal.

If a firm is starting a joint venture or consortium, at least 51 percent of the joint venture or consortium must be owned and controlled by an Aboriginal business or businesses.

A firm must demonstrate, for the duration of the contract, a level of Aboriginal content amounting to 33 percent of the value of the work performed.