Regina, Saskatoon approve policies meant to give more contracts to Indigenous vendors

City councillors in both Regina and Saskatoon voted Wednesday in favour of specific goals for what percentage of city procurement contracts should go to Indigenous vendors.

Regina city council voted unanimously to set a goal of 20 per cent of procurement contracts going to Indigenous-owned vendors.

According to city officials, it is Regina's first policy that directly responds to the Truth and Reconciliation Commission's calls to action.

"It's a significant and historic moment for the city," Thomas Benjoe, president and CEO of FHQ Developments, the economic development corporation for the File Hill's Qu'Appelle Tribal Council. Benjoe presented at Wednesday's meeting.

"This is more than participation, it's about creating impact in our communities and economy."

The City of Regina spent $205 million on procurement in 2022. Just $300,000 — or 0.15 per cent — went to Indigenous businesses. A report presented to city council said that percentage is expected to "grow exponentially" with the implementation of the new policy.

There is no timeline for when the city would be required to meet the goal of 20 per cent. Staff have previously admitted that some finer details in the agreement need to be ironed out.

Benjoe said there has been frustration within Indigenous communities who have been asking for these changes for a while. He said this paves the way for Indigenous voices in the system.

"It gives us greater support from Indigenous business community to know that not only the city is listening and supporting us, but also we're going to see the rest of the business community support us," he said.

"Talking about local procurement, it doesn't get more local than our Indigenous communities participating in procurement. We live here and our people are from this territory for thousands of year."

City officials said the benchmark of 20 per cent was reached by considering the growing Indigenous population in Regina and Saskatchewan. The 2021 census shows 10.3 per cent of Regina's population is Indigenous, while Saskatchewan as a whole sits at 17 per cent.

The benchmark is meant to serve as an achievable requirement that demonstrates Regina's "meaningful economic reconciliation efforts," the report presented to council says.

Mayor Sandra Masters Masters said the goal will help meet the Truth and Reconciliation Commission's 92nd call to action, which calls for a commitment to meaningful consultation, building respectful relationships, obtaining informed consent of Indigenous peoples before proceeding with economic development projects, and ensuring that Indigenous peoples have equitable access to jobs, training and education opportunities.

Glenn Pratt from George Gordon First Nation in Saskatchewan also offered a presentation at the council meeting. Pratt said he supports the procurement policy and that the city is "on the right track" to economic reconciliation.

He pointed to the federal government's 2020 decision to target five per cent Indigenous procurement and said Regina is setting a much better example.

"We recommended to the city to put the policy at 20 per cent because that starts meaningful economical procurement," Pratt said. "It's going to lead the way in terms of all cities. I hope the federal government is embarrassed with their five per cent, because they should be."

With council having approved the policy, the next step is for the city solicitor to prepare an amendment to The Regina Administration Bylaw reflecting the changes.

Saskatoon sets 5% goal

Meanwhile, Saskatoon city councillors approved a target of five per cent Indigenous contract spending.

In a Wednesday committee meeting, city administration was directed to implement a dedicated Indigenous procurement specialist as part of the 2024 budget options for the council's consideration, and to identify contracts that could be directly awarded to Indigenous-owned businesses. The committee heard that this approach would not only help achieve the five per cent target quickly, but would also ensure it is sustainable.

Administration estimated that the five per cent target could be reached by 2025.

During the Aug. 29, 2022, regular meeting of city council, the city's Indigenous spend for 2021 was recorded as approximately one per cent. 

The city report cited Statistics Canada data saying that approximately 4.8 per cent of 32,355 private businesses in Saskatchewan have First Nations, Metis, or Inuit majority ownership, and says this suggests that a target of five per cent Indigenous procurement is achievable.