Procurement Ombud flags 'cascading failure' to enforce federal Indigenous contracting rules

[Dr Strangelove]

Strategy meant to help Indigenous businesses get federal contracts is 'failing,' says ombud
Examples of failures
- Of 27 contracts reviewed, most lacked confirmation that the supplier was actually eligible under the Indigenous Business Directory.
- Joint ventures between Indigenous and non‑Indigenous companies accounted for 61% of spending, but departments did not monitor whether the required share of work was performed by Indigenous partners.
- Nearly $300 million in contracts went to companies later removed from the Indigenous Business Directory.

What the Ombud found
The report, released March 26, identifies systemic gaps in how the federal government administers the Procurement Strategy for Indigenous Business (PSIB):
- Inconsistent guidance from Indigenous Services Canada and Public Services and Procurement Canada.
- Lack of accountability — departments often cannot show whether contracts actually meet Indigenous participation requirements.
- Poor auditing — many contracts were awarded without confirming whether the businesses were eligible Indigenous suppliers.
- Overstated success metrics — the government’s claim that it met its 5% Indigenous contracting target cannot be validated.
The Ombud described the situation as a “cascading failure” because each weakness compounds the next, creating a system where rules exist but are not meaningfully enforced.

30 year old slush fund.

[al_keda]

Lip service to reconciliation.

[testerone]

There's like TWO native people a year that finish trade school in these parts, not enough to have any workers IF any natives had the ambition and money to form a business.
The Band Office has helped set up a couple but none big enough to take on a significant project.
Half the town's spending all their savings paying off their idled logging trucks.
Plus others in the same boat now the GLORIUS pipeline is done. Back on EI