Applying Equity to Procurement
November 1st, 2021
John Desjarlais, P.Eng., recognizes that some non-Indigenous Canadians consider engaging Indigenous people and organizations to be a zero-sum game. There are those who think they are expected to make a sacrifice in order for Indigenous people to advance.
His perspective focuses on gains to be made and equity to achieve equality. He explained this perspective as the chair of a new association formed within Saskatchewan’s construction industry this year.
The Indigenous Peoples-Owned Construction Company Group (IOCCG) went public in September after months of planning and process to formalize the group. Ten different construction companies that are at least 51 per cent Indigenous-owned and operated have come together to “form a unified voice on best practices regarding Indigenous engagement, capacity development, and procurement in the construction industry.”
The process that resulted in this group was started when Joel Morin, an Indigenous person who is the sole proprietor of a construction business, began a conversation with the Saskatchewan Construction Association (SCA). That connection led to the idea of organizing a wider discussion with other Indigenous-owned construction companies. Desjarlais, the general manager of Great Plains Contracting, was contacted by the SCA about participating.
Procurement in construction is often based on cost competitiveness, but the group realized maintaining that focus allows inequality to continue. Cost competitiveness can inhibit businesses from contributing to a broader socio-economic impact.
“We start talking and realized right away that we were often pit against each other and we were not particularly fond of that type of activity,” said Desjarlais.
“Clients usually lump us in the same box and treated us as competitors against each other whereas we should be incentivized and encouraged to work with each other, we felt.”
During that initial conversation, Desjarlais said it was determined they should work on a structure to formalize the group, an effort he could contribute to given his background in governance. The new group would focus on Indigenous interests in the industry while the SCA continues its advocacy for a broad membership.
The group spent about a year establishing its purpose, which is “to represent Indigenous-owned construction companies that seek to increase the socio-economic impact of construction activities for Indigenous peoples.” It also developed its structure before holding an election to select a chair for the board, a role held by Desjarlais, and going through a ratification process.
In its discussions, those participating in developing the IOCCG recognized that ownership of Indigenous-owned construction businesses varies. Some are owned by sole proprietors. Others are limited partnerships. Some are corporations with thousands of shareholders.
For example, Great Plains Contracting, the company that employs Desjarlais as its general manager is a First Nations partnership between File Hills Qu’Appelle (FHQ) Tribal Council Developments LP, Points Athabasca Construction LP and Graham Construction.
FHQ, which makes up 50 per cent of the partnership, is made up of 11 First Nations communities in southern Saskatchewan: Carry the Kettle, Little Black Bear’s Band, Nekaneet, Okanese, Pasqua, Peepeekisis, Piapot, Standing Buffalo, Star Blanket, Wood Mountain, and Muscowpetung. This translates to around 28,000 First Nations shareholders in the company, Desjarlais explains.
“One of our challenges as an association is how do you advocate for business like ours and advocate for a sole proprietor? Our economic impact is very different and far too often, a client would ignore a sole proprietor,” said Desjarlais.
“So how do we be inclusive? How do we not exclude? How do we not think about competition? How does someone like me not simply crush the opportunity of a small Indigenous entrepreneur for the sake of advancing our own business?”
Economic reconciliation, as a concept, helped them bridge the differences.
“Something that’s building incredible momentum is understanding Indigenous economic impact and starting to understand socio-economic impact,” said Desjarlais.
Indigenous-owned construction companies have been procured as Indigenous businesses, but that came with an expectation that these businesses would need to assimilate to enjoy continued success.
“Historically, the market tried to push us to say a successful Indigenous business is one that no longer has to identify (as Indigenous). They can compete,” said Desjarlais.
However, that “systemic racism” then requires the business to change, Desjarlais explains, because the message received is “we don’t want to see any of your values as a business. We don’t care what they are. We just care that you’re cost competitive.”
Allowing that attitude to go unchallenged would mean that the reasons those businesses were established could be dismantled.
“What we saw is the impact that (these) businesses need to make (by providing) training and development, community donations, sponsorships (and) leadership development,” said Desjarlais.
“So, all of those type of activities cost money. We thought, ‘We need to do this. This is why our business exists.’ But then, that places us in a different position in terms of value.”
This activity of developing people and supporting communities increases a company’s overhead costs. There are companies that don’t have those same overhead costs plus they have access to equipment, capital and other assets and can rely on decades of experience and connections when competing.
“What the market and what clients are telling us is that maybe we don’t know how to compete. Maybe we don’t know business, when that’s not the case,” said Desjarlais.
“Some clients, I think, want to have their cake and eat it, too. They want to be able to buy us at the cheapest possible price, but yet want us to make that impact because we were bought as Indigenous businesses. But that’s not possible.”
A competitive system that doesn’t address this inequity – and tries to treat all business as equals – loses out on the opportunity to develop an enhanced understanding of the value a business can offer the society in which it operates. Essentially, a business can give as much or more to the community as it receives.
“We are very good for the economy, potentially better than those who bid five per cent less than us,” said Desjarlais.
“Our businesses are very capable of delivering excellent, safe, quality services. But at the same time, we’re positioned to do it much better than the general market in terms of how we develop inclusive capacity and how we build Indigenous leaders.”
The IOCCG wants to see best practices developed regarding Indigenous engagement, capacity development and procurement in the construction industry and is working on strengthening its relationships with other construction associations in Saskatchewan. The IOCCG may start conversations from a space of Indigenous interests, but Desjarlais said the outcomes it is pursuing will benefit the economy as a whole.
For example, Desjarlais said research shows that money spent with a business that engages Indigenous people in the economy is more likely to circulate locally. Indigenous income earners are more likely to spend within their region and province to meet their personal and household needs. He welcomes additional research, pointing to an interest in the sociological impact of greater Indigenous economic activity and its benefits to the public and private sector. He looks forward to the day there is data related to health, education and justice.
Engineering was a starting point for his efforts to connect economic activity to societal well-being in a way that relates to his lived experience as an Indigenous person raised in Northern Saskatchewan who was educated and works in the southern half.
“Engineers like to solve problems. Engineers really start to elevate their game when they start to understand the socio-political world and people and they take their strong acumen in engineering and design, which is inclusive of people and stakeholders, and start to solve bigger institutional problems in terms of industry and interface.”
Those who question the need for a group such as the IOCCG may point to equality as key to fair competition. Desjarlais explains the need to recognize equity when considering equality. He explains using an example.
Some point to their ancestors immigrating to Canada to settle the west, building homes and livelihoods, who say their family’s success was the result of hard work and dedication alone. They point to this as evidence that Indigenous people can get ahead if they work just as hard.
What that assertion does not recognize is that government programs and supports were created for those immigrants to encourage the population and development of Western Canada. It also does not recognize the policies and programs developed to control Indigenous people as this development took place and how this resulted in the intergenerational trauma in Indigenous families and communities.
This treatment was not equal. Ignoring those facts of history allows inequality to continue. Equal treatment now does not achieve equality. It is through equity that equality can be achieved.
Equity addresses the circumstances of those participating. Circumstances can vary by participant. Developing desired outcomes and applying equitable — rather than equal — treatment to achieve those outcomes is one way to get beyond a zero-sum game to one that generates gains.