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ARTICLE · 15 OCTOBER 2026

Procuring An Edge: Indigenous Businesses And Federal Set-asides

Gowling WLG
Gowling WLG
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Gowling WLG

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Canada's Indigenous procurement framework requires more than nominal ownership. Recent scrutiny reveals that businesses must demonstrate meaningful Indigenous control, participation, and economic benefit, while federal buyers face pressure to ensure opportunities translate into real Indigenous economic outcomes. The rules operate at multiple levels, creating a substantive compliance exercise that extends well beyond the familiar "51% Indigenous-owned" threshold.

CanadaGovernment, Public Sector

Canada has made Indigenous procurement a significant part of its federal strategy, but recent scrutiny of the Procurement Strategy for Indigenous Business (PSIB) shows the rules are under pressure from two directions: the government must demonstrate that Indigenous businesses are receiving meaningful economic opportunities, and businesses must demonstrate that their Indigenous ownership, control, and participation are real in practice.

The rules operate at more than one level. The federal buyer must select the correct procurement route, including whether a PSIB set-aside is mandatory and whether Modern Treaty obligations apply. The bidder must establish eligibility, maintain meaningful Indigenous ownership and control, and satisfy the Indigenous-content requirements in the resulting contract.

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