Aboriginal Procurement Initiative Frequently Asked Questions

Frequently Asked Questions

• What is an Aboriginal business?
• Why does the Manitoba Government define Aboriginal business the way it does?
• Why should a business register?
• What if a business doesn't register?
• What happens if the status of an Aboriginal business changes after it has registered?
• Can an Aboriginal owned business located outside of Manitoba register for the API and be included in the Aboriginal Business Directory?
• Does the Aboriginal Procurement Initiative contravene the Agreement on Internal Trade (AIT)?
• Will Manitoba Aboriginal businesses be given preference over Aboriginal businesses located outside the Province?
• Can a non-Aboriginal company that hires and trains a large number of Aboriginal persons register for the initiative?
• Does an Aboriginal business have to be competitive?
• Is there a price preference for Aboriginal businesses?
• How does a business market its goods/services to the Manitoba Government?
• What kind of goods and services does the Manitoba Government buy?
• How can a business find out more about how to sell to the Manitoba Government?
• How does the government expect to achieve the benefits listed in the API Background?
• How was Manitoba's API developed?
• Does the government have a bid matching service now?
• How will government measure the success or achievements of the API?
• How does a person provide feedback or comments on the API?

What is an Aboriginal business?
An Aboriginal business is defined as:

• At least 51% Aboriginal owned and controlled; and
• If the business or organization has six or more full-time employees, at least one third of them are Aboriginal people.

If a supplier is part of a joint venture or consortium, at least 51% of the joint venture or consortium must be owned and controlled by Aboriginal business(es).

Why does the Government of Manitoba define Aboriginal business the way it does?
To harmonize Manitoba's definition with that of the Government of Canada, since we may have cost sharing agreements or partner on contracts with them.

Why should a business register?
To confirm who they are, where they are located, and what goods or services they offer, so buyers in government will be able to identify them as a possible source of supply when they tender for those requirements. Buyer knowledge of the supplier and what they provide will increase  opportunity for a business to compete for government contracts.

What if a business doesn't register?
The business won't be included on the Aboriginal Business Directory. A business can still bid on government tenders, but it may reduce the opportunity for government buyers to be knowledgeable about the business' capabilities, and may reduce opportunities for doing business with the Manitoba Government.

What happens if the status of an Aboriginal business changes after it has registered?
The supplier should inform Procurement Services Branch of any changes. If a business no longer meets the criteria of an Aboriginal business they will be removed from the Aboriginal Business Directory.

During the tendering process, a business may be required to certify that it is currently an Aboriginal business and will remain so for the duration of that particular contract.

Can an Aboriginal owned business located outside of Manitoba register for the API and be included in the Aboriginal Business Directory?
Yes, providing the criteria for an Aboriginal owned business is met.

Does the Aboriginal Procurement Initiative contravene the Agreement on Internal Trade (AIT)?
No, as per Article 1802 in the AIT, "this Agreement does not apply to any measure adopted or maintained with respect to Aboriginal peoples."

Will Manitoba Aboriginal businesses be given preference over Aboriginal businesses located outside the Province?
Preference may be given to a Manitoba Aboriginal business. Unlike the Government of Canada's Procurement Strategy for Aboriginal Business (PSAB), which is a nation wide program, Manitoba's API has a provincial focus. In keeping with community economic development as a key component of Manitoba's economic strategy, first consideration will be given to Manitoba Aboriginal owned firms, followed by Canadian Aboriginal firms if such competition occurs in tenders. In all cases competitive bidding will be applied to all purchases which means quality, cost, performance, environmental considerations and timelines in the delivery of the goods or services are the primary criteria in making purchasing decisions.

Can a non-Aboriginal company that hires and trains a large number of Aboriginal persons register for the initiative?
No, the company still must be 51% owned and controlled by an Aboriginal person(s).

Does an Aboriginal business have to be competitive?
Yes. The Aboriginal Business Directory is only a tool for government buyers to help identify what an Aboriginal business can supply. Being included on the Aboriginal Business Directory does not constitute any guarantee that a contract will be awarded.

Government buyers must ensure that a competitive bidding process is used, and, as in all government purchasing, quality, cost and timeliness of goods and services are primary criteria in making purchasing decisions and awarding contracts. The Government of Manitoba believes the principle of competitive bidding is important for building a strong competitive business base.

Is there a price preference for Aboriginal businesses?
Price preferences are not presently a consideration in the award of contracts to Aboriginal suppliers.

How does a business market its goods/services to government?
The Manitoba Government tenders its requirements on MERX, an electronic system where new opportunities are listed daily from the public sector across Canada, including Manitoba, the federal and provincial governments, and MASH sector entities (municipalities, academic institutions, schools and hospitals). For detailed information on MERX refer to their website at www.merx.com or contact Procurement Services at 945-6361 for information or a demonstration on MERX.

What kind of goods and services does the Manitoba government buy?
Procurement Services Branch have a complete listing of goods and services they purchase on behalf of the Manitoba Government and will gladly review this information with a supplier when requested. Each department in government also has a Departmental Purchasing Co-ordinator who will be able to provide suppliers with information on purchasing activity within their particular department.  

How can a business find out more about how to sell to the government?
Procurement Services provides workshops for suppliers on "How to Sell to Government", as well as specific workshops on the API. Contact Procurement Services to find out when the next session is planned or to arrange a workshop in a community outside of Winnipeg.

If a supplier would like to discuss the goods and services they provide in more detail, contact Procurement Services Branch and arrange for a personal meeting with a government representative.

How does the government expect to achieve the benefits listed in the API Background?
This initiative has mainly a purchasing focus which may have broad impacts in numerous areas. As the Manitoba Government purchases more from Aboriginal businesses it indirectly contributes to the realization of the benefits listed in the Background of the API.

For example, increased purchasing activity stimulates Aboriginal business development; it may indirectly contribute to a situation where new employment opportunities may be created as Aboriginal people and suppliers conduct more business with the Manitoba Government, resulting in a need to hire more staff.

How was Manitoba's API developed?
An Aboriginal Procurement Work Group with representation from across government canvassed jurisdictions in Canada and the United States, including organizations such as Manitoba Hydro, to review their strategies for best practices pertaining to Aboriginal procurement programs. The Federal Procurement Strategy for Aboriginal Business (PSAB) is the most comprehensive existing model and Manitoba Hydro's Northern Procurement Policy is the best local model. Both have helped shape Manitoba's API framework.

Does the government have a bid matching service now?
An automated service is available through MERX, the electronic tendering service currently used by the Manitoba government. Subscribers to MERX may have tenders matched to their profile of the goods and services they provide. For additional information, contact MERX at 1-800-964-6379 or at www.merx.com.

How will government measure the success or achievements of the API?
Initially government will track the purchases it makes from Aboriginal businesses each year by the type of goods or services provided.

Such tracking will also enable the identification of where there might be a lack of Aboriginal suppliers for a particular good or service, so that business development specialists in government can be informed of potential areas for developing Aboriginal businesses.

How does a person provide feedback or comments on the API?
Through the Procurement Services Branch website at www.gov.mb.ca/gs/psb or by contacting Mark Freedman at mafreedman@gov.mb.ca or 945-0826.