N.W.T. gov’t renews consultation on potential Indigenous procurement policy

Goal is to have the policy in place by the end of 2025, officials tell MLAs

After years of consultation, officials with the N.W.T. government say the territory could have an Indigenous procurement policy by the end of 2025.

The policy would aim to make it easier for Indigenous-owned N.W.T. businesses to land government contracts by giving them certain advantages in the contracting process. Yukon instituted a similar policy in 2021.

The territory already gives priority to N.W.T.-owned businesses.

The N.W.T. government first began consulting on a potential Indigenous procurement policy back in 2021, after it was recommended in a procurement review. Staff have now come up with a few options for what the policy could look like and are doing community consultations, with stops in every region of the territory. Only consultations in Fort Simpson and Yellowknife remain.

Elizabeth King is a director of procurement for the territorial government. Speaking to MLAs at a committee meeting last week, she said “the goal” is to finalize the policy by the end of 2025.

“That is a very efficient timeline but I think it still looks achievable, and I think we can do something that makes sense,” she told the MLAs.

MLA Julian Morse asked how the staff would ensure that non-Indigenous-owned companies aren’t able to benefit from the policy through subcontracting agreements.

“Let’s say an Indigenous business wins a contract over, say, another local business that doesn’t qualify and then subcontracts that work. Would that be considered a bypassing of the policy in some way?” he asked.

“This is kind of a known issue,” King said, adding this also happens sometimes to companies who get contracts through the current Business Incentive Policy for N.W.T.-owned businesses.

King and Ben Singer, another director of procurement at the meeting, told Morse that the territory does have a system for penalizing companies that don’t meet their commitments under the current Business Incentive Procurement Policy.

As of June 2024, Singer said, companies have their payment adjusted downwards in proportion to how far they fell short of those commitments.

Related stories from around the North: 

Canada: Questions raised about Yukon First Nations procurement policy, CBC News

Norway: Nordics consider joint procurement of infantry fighting vehicle, The Independent Barents Observer