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Aboriginal Co-operatives in Canada - Centre for the Study of Co ...

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INDIAN AND NORTHERN AFFAIRS CANADA1.0 EXPANDING BUSINESS OPPORTUNITIES1.1 ACCESS TO CAPITAL (GENERAL PURPOSE—FINANCIAL)Program Description Clients Partners <strong>Aborig<strong>in</strong>al</strong> Take-up1.2 ACCESS TO MARKETS (FINANCIAL AND NON-FINANCIAL)Program Description Clients Partners <strong>Aborig<strong>in</strong>al</strong> Take-upFederal <strong>Aborig<strong>in</strong>al</strong>Bus<strong>in</strong>ess ProcurementInitiativeThe purpose <strong>of</strong> <strong>the</strong> <strong>in</strong>itiative is to <strong>in</strong>crease <strong>the</strong>number <strong>of</strong> <strong>Aborig<strong>in</strong>al</strong> firms compet<strong>in</strong>g <strong>for</strong> andw<strong>in</strong>n<strong>in</strong>g federal contracts. Revenue <strong>Canada</strong> hasalso developed an <strong>in</strong>itiative to assist <strong>in</strong> this area.All <strong>Aborig<strong>in</strong>al</strong> groups andbus<strong>in</strong>esses who meet <strong>the</strong>bidd<strong>in</strong>g criteria.A m<strong>in</strong>imum <strong>of</strong> 3% <strong>of</strong><strong>the</strong> total federal contractsare to benefitthis <strong>in</strong>itiative.ProcurementStrategy <strong>for</strong><strong>Aborig<strong>in</strong>al</strong>Bus<strong>in</strong>essThe Procurement Strategy <strong>for</strong> <strong>Aborig<strong>in</strong>al</strong> Bus<strong>in</strong>essis designed to <strong>in</strong>crease <strong>the</strong> participation <strong>of</strong> <strong>Aborig<strong>in</strong>al</strong>bus<strong>in</strong>esses <strong>in</strong> bidd<strong>in</strong>g <strong>for</strong> federal governmentcontracts. It helps to ensure that <strong>Aborig<strong>in</strong>al</strong> bus<strong>in</strong>essesare better <strong>in</strong><strong>for</strong>med about government procurementneeds and that government procurement<strong>of</strong>ficers are better <strong>in</strong><strong>for</strong>med about <strong>the</strong> capacities <strong>of</strong><strong>Aborig<strong>in</strong>al</strong> bus<strong>in</strong>esses.Under this strategy, all federal government departmentswith a contract<strong>in</strong>g budget over $1 million arerequired to establish per<strong>for</strong>mance objectives <strong>for</strong> contract<strong>in</strong>gwith <strong>Aborig<strong>in</strong>al</strong> suppliers. <strong>Aborig<strong>in</strong>al</strong> firms aregiven first opportunity to supply good and services,and construction contracts servic<strong>in</strong>g <strong>Aborig<strong>in</strong>al</strong> communitiesand populations. All procurement over$5,000, <strong>for</strong> which <strong>Aborig<strong>in</strong>al</strong> populations are <strong>the</strong>primary recipients, are restricted to qualified<strong>Aborig<strong>in</strong>al</strong> firms.A bus<strong>in</strong>ess apply<strong>in</strong>g under thisstrategy will be required tocertify on each bid documentthat it qualifies as an <strong>Aborig<strong>in</strong>al</strong>firm. Qualification is based on<strong>the</strong> follow<strong>in</strong>g criteria:1. 51% ownership and control <strong>of</strong><strong>the</strong> firm is by <strong>Aborig<strong>in</strong>al</strong>people;2. 33% <strong>of</strong> full-time employeesmust be <strong>Aborig<strong>in</strong>al</strong>, <strong>for</strong> firmsthat employ six or more fulltimepeople; and3. Jo<strong>in</strong>t ventures <strong>of</strong> <strong>Aborig<strong>in</strong>al</strong>and non-<strong>Aborig<strong>in</strong>al</strong>bus<strong>in</strong>esses must be at least51% <strong>Aborig<strong>in</strong>al</strong> owned andcontrolled.F E D E R A L I N I T I A T I V E S ~ 165

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