Learn about the Yukon First Nations Procurement Policy

Bid value reductions are a mathematical way of re-ranking bids to reflect increased participation by Yukon First Nations businesses and people.

Both Yukon First Nations and non-Yukon First Nations businesses can benefit from bid value reductions.

Bid value reductions are a win-win for all businesses in Yukon. They will:

• incentivize partnerships among Yukon businesses that will grow the territory’s economy; and
• increase competition for bids that benefit Yukon taxpayers.

The bid value reduction, which will not come into effect before April 26, 2021, will apply to:

• price- and value-driven procurements; and
• invitational and open tenders.

The use of bid value reductions will be:

• continually tracked and assessed by the PS Centre and the government's Monitor and Review Committee; and
• reviewed every 2 years.

Yukon First Nations are eligible in 4 areas:

• the level of Yukon First Nations ownership;
• the level of Yukon First Nations ownership of a subcontractor;
• whether the business’s primary location is in a community; and
• the level of additional Yukon First Nations labour.

Non-Yukon First Nations businesses can benefit from:

• partnering with Yukon First Nations businesses;
• subcontracting to Yukon First Nations businesses; and
• employing additional Yukon First Nations labour.

The vendor performance review system, which is currently under development, establishes a record for each supplier that provides goods or services to the government in relation to 5 performance indicators.

1 of the indicators the program tracks is a supplier’s performance in meeting commitments under the policy. The likelihood of winning future contracts is increased for companies that:

• perform well in terms of meeting commitments to use Yukon First Nations subcontractors; and
• hire Yukon First Nations people.

We'll work with suppliers to help them improve performance. We'll collect scores through Yukon bids&tenders, which will be used by procurement authorities. We're aiming for it to begin in the fall of 2021.

A Yukon First Nations business needs to meet 1 of the following criteria to be eligible:

1. A corporation or not-for-profit corporation where 1 or more Yukon First Nations is the direct or beneficial owner of 100% of the shares of the corporation.
2. A sole proprietorship owned by a Yukon First Nation person.
3. A partnership or limited partnership where at least 50% of the partnership is owned by a Yukon First Nation person or an organization described in 1 or 2.
4. A corporation with at least 51 per cent of the corporation’s voting shares owned by a Yukon First Nation person or an organization described in 1 or 2.
5. A not-for-profit organization in good standing under the Societies Act with Yukon First Nations people comprising at least 51% of its membership.

A sole proprietorship owned by a non-Yukon First Nations person, which supports a Yukon First Nations spouse or common law partner, and/or a Yukon First Nations family, may qualify as a Yukon First Nations business.

We'll engage the relevant Yukon First Nation government during its review.

There's a contract enforcement section in the policy. We'll use the vendor performance review program to assess whether businesses are meeting their commitments under the policy. The system will include penalties for those that do not.

We'll have a verification process to determine which businesses meet the definition of a Yukon First Nations business.

There's a contract enforcement section in the policy. The PS Centre will add specific enforcement terms to contract templates to link the contract back to the commitments that businesses make when bidding.

Also, we'll use the vendor performance review program, once it's ready, to assess whether businesses are meeting their commitments under the policy. We'll then use the results of the vendor performance review program in future procurements. This will affect the likelihood of businesses winning future contracts.