US EditionProcurement ombud slams Indigenous procurement strategy outcomes in ‘shocking’ report
The federal review found departments often failed to verify Indigenous ownership or enforce the 33% Indigenous content rule, risking misuse of set-aside contracts, with over 2,900 businesses listed.
- On Thursday, Procurement Ombud Alexander Jeglic released a report revealing systemic oversight failures within the federal Procurement Strategy for Indigenous Business , warning the government cannot "credibly" claim to be meeting its economic reconciliation targets.
- Indigenous Services Canada provided "fragmented" guidance, leading to "widespread confusion and inconsistent applications" across departments. Agencies frequently bypassed mandatory pre-award audits for contracts valued at more than $2 million.
- Reviewing 27 procurement files, the report found departments repeatedly failed to verify bidders' status, creating risks that non-Indigenous entities use "shell companies" to unfairly access contracts. Most agencies lacked evidence they checked the Indigenous Business Directory.
- Calling the findings "sobering," Jeglic urged creation of an impartial complaints body to hold departments accountable. Reform must occur in collaboration with First Nations, Inuit, and Métis partners, he said.
- Indigenous Services Canada committed to a new complaints mechanism and methodology improvements for the 5 per cent target by 2028. Jeglic's office will review progress every six months to ensure accountability.
18 Articles
18 Articles
Strategy meant to help Indigenous businesses get federal contracts is 'failing,' says ombud
A new report says the federal government's delivery of a strategy for hiring Indigenous businesses is a "cascading failure," with inconsistent guidance, a lack of accountability and a lack of proper auditing of businesses.
The Epoch Times
Procurement Ombud Slams Indigenous Procurement Strategy Outcomes in ‘Shocking’ Report
Indigenous Services Canada and other departments are failing to uphold their own Indigenous procurement strategy and may be allowing contractors to use shell companies to access contracts reserved for Indigenous businesses, says the federal procurement ombudsman. In a scathing new report released Thursday, Alexander Jeglic says Indigenous Services Canada failed to provide timely answers to procurement officers’ questions in some cases and allowe…
'Deeply disappointing': procurement ombud's probe into federal management of Indigenous contracts reveals 'misleading data'
Federal departments and agencies have a mandate to award at least five per cent of the total value of federal contracts to Indigenous-owned and led businesses, but departmental reporting overstated the actual benefit to Indigenous businesses, says the Office of the Procurement Ombud.
‘Deeply and profoundly disappointing’: Watchdog calls for sweeping changes to federal Indigenous procurement strategy
The administration of the federal government’s procurement strategy for Indigenous businesses is rife with “cascading failures” and lacks clear accountability, according to a watchdog report.
Winnipeg Free Press
Procurement ombud slams Indigenous procurement strategy outcomes in 'shocking' report
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