Logo
TOPICS
TOPICS

AIR

NAVAL

LAND

SPACE

CYBER

INDUSTRY
EVENTS
EVENTS

C4ISR & BEYOND

DEEPBLUE FORUM

SHIPTECH FORUM

SIMULATION & TRAINING FORUM

MAGAZINE
PODCAST
Search
Log In
SUBSCRIBE
paper-plane-tilt
Logo
  • Home
  • Posts
  • Federal Audit Flags Weaknesses in Indigenous Procurement Strategy

Federal Audit Flags Weaknesses in Indigenous Procurement Strategy

The Office of the Procurement Ombud (OPO) has found significant compliance gaps in the federal program for directing contracts to Indigenous businesses.

Vanguard Defence
Vanguard Defence

Industry

A sundog appears over Pioneer Bay, NU while Major Shawn Dumbreck, Officer in Command of the Canadian Armed Forces' Arctic Response Company Group (ARCG), conducts a reconnaissance of Objective EIDER as part of Operation NANOOK-NUNALIVUT on March 24, 2019. Photo: Avr Jérôme J.X. Lessard

Since 2022, federal departments have been required to ensure that at least 5% of the total value of their annual contracts are awarded to Indigenous businesses. The OPO's review of four departments and 27 set-aside contracts found the program lacks the centralized policy, enforcement mechanisms, and accountability structures to reliably meet that commitment.

Key findings include the absence of a centralized Indigenous procurement policy, inconsistent departmental practices including skipped pre-award audits and failure to verify supplier eligibility, no recourse mechanism for Indigenous suppliers challenging contract awards, and a reporting methodology that overstates actual economic benefit by including work performed by non-Indigenous subcontractors.

The Ombud made three recommendations: develop a government-wide Indigenous Procurement Policy; establish a recourse mechanism for Indigenous supplier complaints, with a permanent mechanism to be Indigenous-led; and update the 5% target methodology to reflect only work performed by Indigenous businesses.

Public Services and Procurement Canada, which acts as contracting authority for major DND procurement programs, was among the departments reviewed, making the findings directly relevant to defence procurement.

Vanguard Defence delivered to your inbox

Get defence stories delivered to your inbox for free.

KEEP READING

OUR EVENTS

June 5, 2026

Event Title Here

Event Description here


June 5, 2026

Event Title Here

Event Description here

LATEST STORIES

320 New Jobs, One Combat System: Lockheed’s Nova Scotia Play

320 New Jobs, One Combat System: Lockheed’s Nova Scotia Play

Jul 28, 2026

Industry

The company is adding up to $126 million in salaries and 320 new jobs over the next five years.

DND Backs AI Decision Advantage with $8.3M Award to Larus Technologies

DND Backs AI Decision Advantage with $8.3M Award to Larus Technologies

Jul 27, 2026

Cyber

As the Canadian Armed Forces continue to scale capabilities across domains, tools like MAABI point to a future where decision advantage is increasingly shaped by the speed, precision, and adaptability of AI-enabled systems.

Arctic sovereignty, now a routine — not a one-off

Arctic sovereignty, now a routine — not a one-off

Jul 23, 2026

Industry

CAF, U.S. forces conduct multi-domain Arctic operation under LATITUDE

From Factory Floor to In-Flight: Aerospace is Canada’s Strategic Advantage

From Factory Floor to In-Flight: Aerospace is Canada’s Strategic Advantage

Jul 23, 2026

Air

What matters now is delivering capability and moving forward with contracts.

GE, Magellan bet on a fighter Canada hasn't bought yet

GE, Magellan bet on a fighter Canada hasn't bought yet

Jul 22, 2026

Air

This is industry positioning ahead of a decision, not after one.

Airbus, Landing Zones sign UAS partnership at Farnborough

Airbus, Landing Zones sign UAS partnership at Farnborough

Jul 22, 2026

Space

Landing Zones will act as a representative for Airbus Defence and Space Services in Canada.

Briefing and connecting Canada’s defence community

TOPICS






Explore





Stay informed

Get Vanguard Defence in your inbox.

No spam. Unsubscribe anytime.


Copyright 2026 Vanguard Defence. | Privacy Policy | Terms Of Service | Contact