Five national Indigenous organizations have partnered to create the First Nations Procurement Organization, which will help Indigenous organizations win federal contracts.
The new procurement organization, known as the FNPO, will offer certification, networking, education and promotion for Indigenous businesses, as well as a business directory for purchasers.
“The FNPO will serve as a central hub, offering culturally appropriate wraparound services via a single point of contact for First Nation procurement needs,” explained a news release jointly issued by the five groups.
The organizations involved are AFOA Canada, the Council for the Advancement of Native Development Officers, First Nations Finance Authority, First Nations Financial Management Board, and the National Aboriginal Capital Corporations Association.
Once launched, the FNPO is designed to serve as a space where Indigenous businesses can network with the federal government and corporations, and learn how to navigate complex government procurement processes via training and events.
First Nations entrepreneurs “encounter systemic biases embedded within the existing procurement ecosystem,” read a news release announcing the new procurement organization.
The FNPO will advocate on behalf of Indigenous businesses and advise the federal government on policies needed to achieve Canada’s five-percent Indigenous procurement target, mandated by Ottawa in 2021 with a view to reaching that goal in 2024.
“Government procurement is designed to be risk-averse, which means it’s hard for companies to win contracts unless they have historically worked with the government,” Jean Vincent, chair of the National Aboriginal Capital Corporations Association, was quoted as saying.
“We know this excludes many First Nations businesses and we know it makes meeting the five-percent procurement target challenging.”
Of the $22 billion Canada spends annually goods and services from Canadian businesses, the FNPO says less than one percent is currently with Indigenous businesses.
The procurement organization projects it will need up to $20 million in federal funding to launch and remain operational for the first five years, after which it will become self-sustaining through membership fees for government and corporate clients, training and events.
Membership for corporate clients will give them access to an Indigenous business directory, to help purchasers find certified businesses and suppliers.
