N.W.T. Indigenous Procurement Policy Stalls as Major Projects Approach

The Government of the Northwest Territories (GNWT) has decided not to implement an Indigenous procurement policy after examining the proposal since 2021. A government spokesperson told CBC News that the territory did not move forward because it could not reach consensus on how the policy should work and needed a clearer understanding of Indigenous participation in existing procurement. The decision leaves the N.W.T. without a dedicated policy that adjusts bid evaluations to support Indigenous businesses, even as major projects and military spending worth billions of dollars are anticipated in the territory. For contractors, the immediate operational point is that no new Indigenous procurement requirement or bid preference has been adopted.

Indigenous business and political leaders say a policy could help local firms compete with larger, established companies based outside the territory. Mildred Martin, co-owner of Wintergreen Travel, a booking agency based in Fort Smith, N.W.T., said her business has missed opportunities without a policy intended to help Indigenous-owned firms compete. Martin participated in government consultations. The debate is therefore not only about future contract rules: it also concerns whether local businesses can access upcoming work and whether public procurement can advance economic reconciliation. Range Lake MLA Kieron Testart summarized that objective by saying, “We need to be committed to economic reconciliation.”

The proposals under discussion include adjusting bid values based on Indigenous ownership and work performed on Indigenous lands. Such mechanisms could affect how future bids are evaluated, how primes structure partnerships, and how subcontracting or local delivery plans are presented—if the territory adopts a policy. At present, however, bidders should not treat these ideas as evaluation criteria, set-aside rules, or solicitation requirements. GNWT teams and vendors should continue to follow the applicable procurement documents and existing rules while monitoring whether consultations or policy work resume.

The regional and federal context is relevant to contractors preparing for competition. Yukon and Nunavut have Indigenous procurement policies that support Indigenous businesses by adjusting bid values based on ownership. The federal government has also established a target for five per cent of contracts to go to Indigenous businesses. CBC reported concerns about “systemic gaps” in confirming eligibility under the federal program, including tens of millions of dollars flowing to businesses later removed from the registry; questions have also been raised in Yukon about illegitimate companies benefiting from its policy. The N.W.T. has adopted a definition of Indigenous business that relies on its Business Incentive Policy, federal standards, or standards established by a modern treaty partner. The territory says this framework can help track contract destinations and identify issues, but it has not adopted the proposed bid-adjustment policy. For prospective primes and Indigenous firms, the practical approach is to verify current eligibility, document ownership and work location accurately, and distinguish existing requirements from advocacy proposals as major-project and defense-related opportunities develop.

• Policy status: The GNWT decided not to proceed after five years of consideration; work on the proposal had been underway since 2021.
• Stated reason: The territory cited a lack of consensus on policy design and limited information about Indigenous participation in current procurement.
• No new rules: Proposed bid adjustments are not adopted requirements; bidders should rely on current solicitation terms and procurement rules.
• Potential evaluation factors: Advocates have proposed adjustments based on Indigenous ownership and work performed on Indigenous lands.
• Market outlook: Billions of dollars in major projects and military spending are anticipated in the Northwest Territories, making the policy debate relevant to upcoming competition.
• Business impact: Wintergreen Travel co-owner Mildred Martin says her Indigenous-owned business has missed opportunities in the absence of a policy supporting competition with larger outside firms.
• Regional comparison: Yukon and Nunavut have Indigenous procurement policies that adjust bid values based on ownership.
• Federal context: The Government of Canada has a five-per-cent contracting target for Indigenous businesses; reported eligibility-control concerns make verification and documentation important.
• Current N.W.T. framework: Indigenous business definitions draw on the territory’s Business Incentive Policy, federal standards, or standards established by a modern treaty partner.
• Bidder action: Track any future GNWT policy developments, validate Indigenous-business status under applicable rules, and avoid pricing or compliance assumptions based on proposals that are not yet in force.