Canadian Government Contracts

Canadian government contracting has similar processes to those in the U.S., making the Canadian market highly accessible to U.S. government contractors. This short guide explains what you need to know to find the right opportunities, connect with procurement officials or teaming partners, learn about the market, and, most importantly, win Government of Canada contracts.

Every government must secure the goods and services essential to serving its citizens and communities. To do so, they enter into agreements with businesses that can provide the products and services the government needs.

Governments in Canada are no different; whether they are federal, municipal, provincial or territorial governments, they still need to provide what their citizens need. The Canadian government contracting process differs depending on the type of contract or the government entity involved.

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Similar to doing business with the U.S., selling to the government in Canada can differ depending on which type of government contract is on offer, such as bids and tenders (explained below), or which Canadian government agency a business is working with.

These are the three tiers of government in Canada:

CANADIAN FEDERAL GOVERNMENT

The federal government, known as the Government of Canada, spends approximately $20 to $22 billion CAD ($15 to $17 billion USD) annually on behalf of federal departments and agencies. This process is not dissimilar to U.S. federal contracting. To provide critical government functions, Public Services and Procurement Canada (PSPC) – the procurement arm of the federal government – averages 60,000 transactions annually for goods and services.

Just like in the U.S., the Canadian federal government is also heavily invested in the defence sector. Every year, Canadian defence organizations spend billions of dollars purchasing a wide variety of goods and services. Indeed, the Department of National Defence (DND) is responsible for well over 10,000 contracts per year and will spend an estimated $26.5 billion Canadian Dollars (CAD) in 2023-24. However, Canada’s defence budget, as well the broader Canadian federal budget, is facing proposed cutbacks.

Going into 2024, the defence industry in Canada is entering into a period of uncertainty, driven by the Government of Canada’s recent announcement to make sweeping budget cuts. All federal departments and agencies are being asked to collectively cut $15.4 billion CAD over five years.

Considering these potentially challenging economic conditions, it’s important that all companies that do business with the Canadian federal government develop a deep understanding of the state of Canadian defence purchasing.

CANADIAN PROVINCIAL AND TERRITORIAL GOVERNMENT

At the provincial and territorial level, procurement spending accounts for about $30 billion CAD ($23 billion USD) each year. Canada comprises ten provinces and three territories, but four provinces make up roughly 80 percent of total provincial and territorial spending: Ontario, Quebec, British Columbia and Alberta.

Provinces have their own unique procurement powers, which are exclusive from those of the Government of Canada.

Territories were created by the federal government and have authorities that differ from provinces.

CANADIAN MUNICIPAL GOVERNMENT

The municipal market includes municipalities, academic institutions, schools and hospitals, also known as the MASH sector. Municipal spending represents $15 to $18 billion CAD ($11 to $13 billion USD) yearly. Most of this spending comes from a few cities in particular: Toronto, Montreal, Calgary, Ottawa, Edmonton, Winnipeg, Mississauga and Vancouver.

Just like public sector contracting in United States, entering and growing your success in the Canadian government contracting market requires a commitment to understanding its unique needs, rules and regulations. That’s why experts from the U.S. Commercial Service and Deltek have partnered to share tips and best practices for approaching the Canadian government contracting market with confidence in this free-to-access, on-demand presentation:

Tips for Approaching the Canadian Government Contracting Market with Confidence

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In Canada, government solicitations are often referred to as “tenders” or “proposals”. After evaluating bids, the winning proposal is selected and the procurement entity awards the contract on behalf of the department or agency. The public is then notified through an award notice posted on the same tendering service that was used to advertise the requirement. Several types of bid notices are utilized in Canadian procurement; bids and tenders in Canada are some of the most common types.

Canada bids and tenders are posted on government websites such as CanadaBuys. One unique aspect of Canadian government procurement is its official language requirements for these posted notices. Canada has two official languages – English and French – so bids and tenders from the Government of Canada are published in both languages. Bidders may respond in the language of their choosing.

What is CanadaBuys?

CanadaBuys is the designated public platform for federal bids and tenders in Canada. Searches can be filtered by a few features, such as keyword(s), tender notice status or location.

Sellers to the Canadian federal government should register with CanadaBuys and become familiar with how the site works and how goods or services fit within it to help them search and monitor for relevant opportunities.

The Canadian government offers businesses plenty of opportunities to find and win government contracts. Before your company can bid on government contracts in Canada, you need to follow a few key steps to best position yourself to win.

1. Understand the Canadian Public Sector Market

The first step to doing business in Canada is understanding the market and where your business is likely to be successful by answering the following questions:

• Which governments buy goods and services that your business provides?
• How much have these governments bought before, and how do they make their purchases?
• What are these governments’ plans for buying in the future?
• Which regions or jurisdictions are a good fit for your company?

The answers to these and other similar questions can be determined by getting a holistic view of the Canadian market and comparing what each government needs or is likely to buy. That information is gained by analyzing tender and contract data, combing through budget and planning documents, and identifying market trends. Businesses can use tools like GovWin IQ from Deltek to gather this information in one place.

2. Register Your Business in Canada

To do business at any level of government in Canada, your second step should be registering your business. At the federal level, you should follow these steps:

• Be prepared with your Business Number (BN) from the Canada Revenue Agency (CRA). If your business is based outside of Canada, contact a Tax Service Office (TSO) to apply for your BN.
• Register as a supplier in the Supplier Registration Information (SRI) system.
• Sign up for SAP Ariba if you have not done so previously.
• Register in procurement databases and/or methods of supply relevant to your company

3. Find Canadian Government Contracts

The third step to doing business in Canada is knowing where and how to locate opportunities. CanadaBuys is the officially designated site for federal bids and tenders. Suppliers should become familiar with the language of CanadaBuys and how goods or services fit within it to help them search and monitor for opportunities. Provinces, territories, and municipalities usually have their own online tendering platforms as well, although they differ in their capabilities and search features.

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4. UNDERSTAND THE ADDRESSABLE CANADIAN GOVERNMENT MARKET FOR WHAT YOU OFFER

It is more than likely that Canadian government buyers across federal, provincial, territorial and MASH (municipalities, academic institutions, schools and hospitals) sectors are soliciting tenders and bids for the types of goods or services that your company provides. Browsing GovWin IQ’s sample government contracts site can give you an idea of what these governments are looking for. This will help you get an idea of your potential total addressable market (TAM) in the Canadian public sector.

Similar to the U.S. public sector market, numerous and varied procurement opportunities exist at all levels of government in Canada and can be accessed by all types of suppliers. GovWin’s free-to-access “Top Canadian Government Contracting Opportunities for 2024” report profiles ten top procurement opportunities from government entities across Canada that are expected to be released in 2024, including opportunities from the Canadian federal government, provinces, territories and municipalities. By reviewing the report, you will learn key insights about each opportunity, including budgeted and projected funding, estimated solicitation date and project background. From defense to information technology to construction, the analysis contained in this report covers a variety of projects for suppliers of all backgrounds to discover:

Build Your Pipeline with Top Canadian Government Contracting Opportunities

Review ten top procurement opportunities for 2024 from government entities across Canada, including the federal government, provinces, territories and municipalities.

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Are you looking to gain an edge in the Canadian public sector market? GovWin IQ from Deltek offers access to comprehensive, centralized coverage of Canadian federal, provincial, territorial, and municipal markets in one platform. As the leading provider of U.S. contracting market intelligence in both federal contracting and state and local contracting, Deltek’s GovWin IQ is now applying its tried-and-true methods to the Canadian market. Everything your company needs to do business in Canada successfully, from bids to contracts to market insights, is available on the user-friendly GovWin IQ platform.

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