Working for First Nations as buyers

Much of what is written about Indigenous procurement is about governments buying from Indigenous businesses. That matters, and we cover it in Indigenous procurement in Canada. This article looks at the other direction: First Nations as buyers.

BC has around 200 First Nations, and Alberta has close to 50. Many run their own housing, schools, water systems, roads, health centres, offices and businesses. They hire contractors for construction, maintenance, snow removal, landscaping, cleaning, security, IT and professional services. For many small contractors, especially in rural areas, First Nations are among the most important clients in the region.

Who does the buying?

• First Nations governments (band or nation administrations), through their public works, housing and capital departments.
• Development corporations, the business arms of many Nations, which run companies and partnerships of their own.
• Housing, education and health authorities set up by one or several Nations.
• Tribal councils and other groups that serve several communities.
• Self-governing Nations under modern treaties, with their own laws on procurement.

How do they buy?

There is no single system. Each Nation sets its own procurement policy. Common features include:

• Priority for members and member-owned businesses, then other Indigenous businesses, then others.
• Invitations to known contractors for smaller work, and open tenders for larger projects, sometimes posted on public portals and sometimes only on the Nation's site or through local networks.
• Funding rules. Many capital projects are funded through federal programs, which can set requirements on tendering, reporting and timelines.
• Community benefit requirements, such as hiring and training members, subcontracting to member businesses and sometimes joint ventures with the development corporation.

Because funding cycles drive many projects, timing can be tight. Work often has to be tendered and started within a funding year.

How to be a good partner

Listen first. Ask about the Nation's priorities and process before pitching. What the community wants out of a project often goes beyond the building itself.

Hire and train locally. If you can bring members onto your crew, with real training and a path to keep working, say so and mean it. Plan for it in your price and schedule. See hiring for a contract you just won.

Partner where it makes sense. Joint ventures and subcontracts with Indigenous businesses are common. Be clear about who does what and how money flows. Arrangements that put an Indigenous name on a bid without real participation damage trust and can breach procurement rules. See subcontracting on public work.

Respect community protocols about land, culturally important sites, community events and the people you work around.

Keep commitments. Small communities talk. A contractor who left a job half-finished will not be invited back, and word travels to nearby Nations.

Practical points

• Licences and permits on reserve land can differ from municipal rules. Ask the Nation what applies. See mobile business licences in BC.
• WorkSafeBC and insurance still matter. See WorkSafeBC coverage for contractors.
• Travel and accommodation for remote communities need to be priced in.
• Payment timing may follow funding draws. Clarify the payment schedule up front. See getting paid on public contracts.

A growing part of the market

As more Nations take on self-government, build housing and launch economic development projects, their share of regional construction and services keeps growing. Federally, Indigenous Services Canada describes a target for at least 5 percent of the total value of federal contracts to go to Indigenous businesses, which strengthens Indigenous-owned firms that Nations may partner with. For contractors who take the time to build real relationships, working with First Nations can be some of the most rewarding work there is.