What is the PSIB?

How PSIB set-asides work

Under the PSIB — administered by Indigenous Services Canada (ISC), and formerly known as PSAB — federal organizations designate certain contracts as conditionally or mandatorily set aside for Indigenous businesses. Mandatory set-asides apply notably where a contract serves a population that is majority Indigenous; voluntary set-asides are applied at the department's discretion to help meet the 5% target.

Only businesses meeting the eligibility test may bid on a set-aside contract: at least 51% Indigenous ownership and control, and for firms with six or more full-time staff, at least one third of employees must be Indigenous. Joint ventures can qualify when the Indigenous partner meets the ownership and control thresholds.

Registration and verification

Eligible firms register in the Indigenous Business Directory (IBD) maintained by Indigenous Services Canada; appearing in the directory is how buyers verify eligibility. Businesses certified by recognized Indigenous organizations may also be accepted, and audits can be conducted before or after contract award.

Keep ownership documentation current, because eligibility is verifiable at any point in the contract lifecycle and misrepresentation can void the contract.

Finding PSIB opportunities

PSIB set-asides are published on CanadaBuys like any other federal tender, flagged in the notice's procurement strategy details. Some opportunities are also shaped by Indigenous Participation Plans, which require all bidders — Indigenous or not — to commit to Indigenous subcontracting, employment, or skills outcomes.

For non-Indigenous firms, those participation requirements make partnerships and joint ventures with Indigenous businesses a practical route into this growing segment of federal spend.

Frequently asked questions

Who qualifies as an Indigenous business under the PSIB?

A business at least 51% owned and controlled by Indigenous peoples (First Nations, Inuit, or Métis). Firms with six or more full-time employees must also have at least one third Indigenous staff.

What is the 5% target?

A Government of Canada commitment that at least 5% of the total value of federal contracts be awarded to Indigenous businesses, phased in across departments. PSIB set-asides are one of the main tools for meeting it.

Is PSIB the same as PSAB?

Yes — the program was renamed. The Procurement Strategy for Aboriginal Business (PSAB) became the Procurement Strategy for Indigenous Business (PSIB), with updated eligibility and administration under Indigenous Services Canada.

Can a joint venture bid on PSIB set-asides?

Yes, provided the Indigenous partner holds at least 51% ownership and control of the joint venture and the arrangement meets ISC's eligibility criteria.