7.4.1.4 Example Illustrating a Violation of the Pehta Framework's Integrity

In this scenario, a vendor is bidding on a $20,000,000 waterline construction project. As part of the RFPs bid evaluation, there is a focus and weighting on the benefits and opportunities provided to Indigenous communities. Recognizing this, the vendor attempts to manipulate the system to appear compliant with the Indigenous procurement requirements set forth by the Pehta Framework.

The vendor approaches a Third-party Certified or Self-declared Indigenous-owned business with a proposition: they offer to place a $4,000,000 pipe order through a non-Indigenous supplier, but do so in the name of the Indigenous business. In exchange for this, the Indigenous business receives some form of consideration, which could range from a financial incentive to a promise of future business. The vendor then proceeds to claim this $4,000,000 pipe order as part of their Indigenous procurement spend in their RFP submission.

However, this practice is a clear violation of the Pehta Framework's principles. It undermines the framework's goal of authentic and meaningful Indigenous community engagement in procurement processes. Rather than the Indigenous business genuinely supplying the pipes, or being involved in a substantial part of the supply chain process, they are merely being used as a front. The true economic benefit and opportunity for capacity building within the Indigenous community is minimal or nonexistent.

This behavior distorts the true intent of the Indigenous procurement requirements, reducing them to a tick-box exercise rather than a genuine effort to empower Indigenous communities. It also damages the trust and credibility of the vendor, as they are engaging in practices that are superficial and dishonest, contrary to the transparency and integrity expected by the Pehta Framework. This not only impacts their current bid but could also have long-term repercussions on their reputation and ability to secure future contracts, especially those emphasizing ESG compliance and Indigenous community benefits.