Social procurement

Social procurement is the practice of leveraging purchasing power to realize socio-economic objectives by including socio-economic measures within procurement processes. In the Canadian federal context it has an official policy footing: the Public Services and Procurement Canada (PSPC) Policy on Social Procurement, a PWGSC policy in effect since May 3, 2021.

What it is

Per the federal policy, social procurement objectives can include enhancing market competition, job creation, and economic and social advantages stemming from purchases from small and medium enterprises, social enterprises or social purpose organizations, as well as encouraging socially responsible business conduct and advancing diversity and inclusion. The policy's stated aim is to support "best value for the Crown" — defined as an optimal balance between resource expenditures and outcomes, including non-financial considerations — and it applies to goods, services and construction procurements run by PSPC's Acquisitions Program, including those on behalf of client departments. It explicitly does not apply to procurements subject to modern-treaty (comprehensive land claims) obligations or to projects triggering the duty to consult, unless local Indigenous representatives consent in writing.

What socio-economic measures look like

The policy defines social benefit criteria as measures that can be included in a procurement instrument requiring federal suppliers to provide socio-economic benefits to the Canadian population as a procurement outcome — with examples such as employment of individuals from underrepresented groups, workforce and skills development, co-op programs, scholarships and research funding. PSPC's Supplier Diversity Action Plan builds on the same policy to increase participation of businesses from underrepresented groups, drawing on pilot procurements targeting women, persons with disabilities, racialized Canadians and Black-owned businesses.

How it differs from green and Indigenous procurement

Social procurement is deliberately distinct from two adjacent regimes. Green procurement runs under the Treasury Board Policy on Green Procurement (in effect since April 1, 2006), and the social procurement policy states the two are to be used in conjunction — one pursues environmental outcomes, the other socio-economic ones. Indigenous procurement is also separate: the policy itself states that the Indigenous context is markedly distinct because of the unique historical and legal relationship between the Crown and Indigenous Peoples, and programs such as the Procurement Strategy for Indigenous Business are carried out separately.

What it means for vendors

Expect some federal solicitations to carry socio-economic measures: social benefit criteria in the evaluation scheme, set-asides or small business set-aside programs, or questions about your firm's own diversity and workforce practices. Read the evaluation criteria to see whether socio-economic factors are scored and how they are weighted — they form part of the best-value assessment, not a charity add-on — and answer them with verifiable facts about your workforce, subcontracting and community participation rather than aspirational statements.

Common questions

Does social procurement replace price competition?

No. The policy frames socio-economic measures as a way of enhancing best value — financial and non-financial factors together — within normal competitive processes. Price and technical merit remain part of the evaluation; socio-economic measures are additional considerations where the buyer includes them.

Do provincial and municipal buyers do this too?

Yes, in various forms — several provinces and municipalities run their own social-value or community-benefit procurement approaches — but the May 2021 federal policy is PSPC-specific and the definition above is the federal government's own.

Related definitions

Green procurement · Industrial and technological benefits (ITB) · Supplier eligibility and Canadian content · OSME (Office of Small and Medium Enterprises)