REGIONAL FOCUS A lthough liquid natural gas (LNG) development is now largely on hold in British Columbia, at its height companies were advancing huge projects that benefited First Nations in many ways, including providing procurement opportunities for Indigenous business. I recently drafted a report on this topic for the First Nations LNG Alliance. Titled Report on Indigenous Procurement Opportunities for LNG, it identified common barriers and best practices and opportunities tied to the procurement of Indigenous suppliers. Summarized here are some of the report’s key findings. TRUST & COMMITMENT Everyone knows there are many barriers faced by First Nation busi- nesses, including access to training and capital. But the report acknowl- edged that, in the LNG industry in B.C., a foundation of trust and commitment was just as important. Ultimately, trust proved to be the best foundation for success. LNG companies in the province often negotiated impact agreements that outlined procurement and employment opportunities. But this alone did not ensure these commitments were met. The agreements often encompassed the work of subcontractors who weren’t party to any agreement reached between First Nations and LNG companies. As a result, implementing the agreements turned out to be far more difficult than negotiating them. In the absence of relationships built on trust, drafting strong contracts was key: comprehensive contracts that outlined expectations, outcomes, and constant oversight by all parties. Industry needed to lead the charge to ensure First Nation businesses had every opportunity to succeed. How else could they overcome barriers such as industry bias against new, unknown companies? Corporate Canada also had a lot of capacity and expertise to share, but a successful outcome could only be guaranteed if built on a strong relationship. Only then were parties able to move from a strictly legal- compliance approach to one that focused on collaboration and the spirit and intent of the agreement. Other successful strategies employed by B.C. stakeholders included ensuring all parties had realistic expectations and a solid understanding of what LESSONS LEARNED could be achieved. Everyone needed to be aware of the full range of oppor- tunities and they needed to have a complete inventory of Indigenous busi- nesses and skills so they could match the right people to the right opportuni- ties and prepare them properly. As well, those organizations with dedi- cated staff for procurement and busi- ness development were far more likely to succeed – whether a First Nation economic entity or an LNG company. Also important was having staff with roles and responsibilities dedicated to ensuring targets were being met. The report revealed that groups with review-and-measurement processes in place were far more likely to succeed. The use of contracting tools was critical, i.e., tools to input targets or budget amounts, penalize subcontrac- tors who failed to meet procurement targets, or award bonuses to those companies that achieved their targets. Another take-away was that when multiple First Nation groups worked together on a project, their opportuni- ties increased exponentially. AREAS OF IMPROVEMENT There is much to be learned from the LNG experience in B.C. and I was able to identify key areas in BY KIM BAIRD KEY TAKE-AWAYS FROM THE FIRST NATIONS PROCUREMENT EXPERIENCE IN B.C.’S LIQUID NATURAL GAS INDUSTRY LESSONS LEARNED 34 A CCAB PUBLICATION 2018