How to Bid on Canadian Government Contracts in 2026

The Canadian federal government spends over $25 billion annually on goods, services, and construction through competitive procurement. Whether you're a small business owner looking to diversify your revenue or a seasoned contractor expanding into public-sector work, this guide covers everything you need to know to find, bid on, and win government contracts in Canada.

What is CanadaBuys?

CanadaBuys is the Government of Canada's official electronic procurement platform. Launched in 2023 to replace the legacy MERX system and Buyandsell.gc.ca, it serves as the single window for federal government procurement opportunities.

Through CanadaBuys, federal departments publish Requests for Proposals (RFPs), Requests for Quotations (RFQs), Advance Contract Award Notices (ACANs), and other procurement instruments. Every open federal tender is published here, making it the definitive source for government contracting opportunities.

The platform is free to access, and all published data is available under the Open Government Licence — Canada. However, the site itself can be difficult to navigate, offers limited search and alerting capabilities, and doesn't always present information in a business-friendly format — which is why tools like GovBids exist.

How Government Procurement Works in Canada

Canadian federal procurement follows strict rules designed to ensure fairness, transparency, and value for taxpayers. The process is governed by the Government Contracts Regulations, Treasury Board policies, and Canada's obligations under international trade agreements (like CFTA, CPTPP, and CUSMA).

The Procurement Lifecycle

1. 1. Planning: The government department identifies a need and develops requirements. For large procurements, this may involve industry consultations through Requests for Information (RFIs) or Letters of Interest (LOIs).
2. 2. Solicitation: The opportunity is published on CanadaBuys. The solicitation document contains the requirements, evaluation criteria, and submission instructions.
3. 3. Bidding Period: Suppliers prepare and submit their proposals before the closing date. During this period, suppliers can ask questions — answers are published as amendments visible to all bidders.
4. 4. Evaluation: A team evaluates proposals against the published criteria. This is point-rated, price-based, or a combination. The process is standardized and auditable.
5. 5. Award: The winning supplier is selected and a contract is issued. Award notices are published on CanadaBuys for transparency.
6. 6. Contract Management: Work is performed, deliverables are accepted, and payments are made according to the contract terms.

Key Procurement Methods

The government uses several procurement methods depending on the value and nature of the requirement:

• Open Bidding: Available to all qualified suppliers. This is the default for procurements above certain thresholds.
• Selective/Limited Tendering: Only pre-qualified suppliers are invited to bid. Used when there's a recognized need for specific qualifications.
• Standing Offers & Supply Arrangements: Pre-established agreements where the government can call up goods and services as needed. Think of it like a pre-approved vendor list.
• Advance Contract Award Notice (ACAN): The government signals its intent to award to a specific supplier and gives others a chance to challenge the decision. Often used for sole-source justifications.

Types of Tenders

Government tenders on CanadaBuys are categorized into four main procurement categories:

Tenders are also classified by GSIN (Goods and Services Identification Number) and UNSPSC codes, which provide more granular categorization. Understanding your GSIN codes helps you find opportunities that match your business.

How to Register as a Government Supplier

Before you can bid on federal contracts, you need to get set up:

Step 1: Get a Business Number

You need a Business Number (BN) from the Canada Revenue Agency. This is your unique identifier for all interactions with the federal government.

Step 2: Register on CanadaBuys

Create a supplier account on CanadaBuys. You'll need to provide your business details, areas of expertise, and GSIN/UNSPSC codes for the goods and services you offer.

Step 3: Get Security Clearances (If Required)

Many contracts, especially in defence, IT, and construction, require personnel to have security clearances from the Contract Security Program (CSP). This process can take 2–6 months, so plan ahead.

Step 4: Pre-Qualify Where Possible

Some procurement vehicles require pre-qualification. For example, Public Services and Procurement Canada (PSPC) maintains Supply Arrangements for common goods and services. Getting on these lists means you'll be invited to bid on call-ups without needing to compete each time.

How to Find Relevant Tenders

Finding the right opportunities is half the battle. Here's how to stay on top of relevant tenders:

Option 1: Browse CanadaBuys Directly

You can search and filter tenders on CanadaBuys by keyword, GSIN code, procurement category, and contracting entity. However, the interface is government-grade (functional, not delightful), and there's no smart alerting — you have to check back manually.

Option 2: Use a Tender Tracking Service

Services like GovBids pull data from CanadaBuys automatically (every 2 hours), provide better search and filtering, and send you email alerts when new tenders match your criteria. This saves hours of manual searching each week.

With GovBids, you can set up saved searches based on keywords, categories, regions, and contracting entities. When a new tender matches your search, you get an alert — daily or in real-time, depending on your plan.

Option 3: Network and Industry Events

Attend government procurement conferences and industry days. PSPC regularly hosts events where upcoming requirements are discussed before formal solicitations are published. This gives you a head start on preparing your bid.

Tips for Writing Winning Bids

Government bids are won on substance, not style. Here are the fundamentals:

1. Read the Entire Solicitation

This sounds obvious, but it's the #1 mistake. Government solicitations are long and detailed for a reason. Every requirement, every clause, every evaluation criterion matters. Read the document cover to cover — including the annexes.

2. Answer Exactly What's Asked

Government evaluators score your proposal against a checklist. If the solicitation asks for three references from projects completed in the last five years, provide exactly that — not two, not from seven years ago. Be literal and thorough.

3. Structure Your Response to Mirror the RFP

Use the same section numbers and headings as the solicitation. This makes it easy for evaluators to find your answers. A well-organized proposal signals professionalism and makes scoring easier.

4. Demonstrate Past Performance

Government buyers are risk-averse. Show them you've done similar work successfully. Include specific examples with measurable outcomes. "Delivered a $500K IT migration for [Client] on time and under budget" is better than "extensive experience in IT projects."

5. Price Competitively, Not Cheaply

Lowest price doesn't always win. Many procurements use "best value" evaluation, where technical merit carries significant weight. Price your bid to reflect the actual cost of delivering quality work. Unrealistically low bids raise red flags.

6. Submit on Time

Late bids are rejected — no exceptions. Government procurement officers have zero discretion here. Submit at least 24 hours before the deadline to account for technical issues with the submission system.

Common Mistakes to Avoid

• ❌ Bidding on everything: Focus on opportunities where you have genuine expertise and can be competitive. Shotgun approaches waste time and money. Use tools like GovBids search to filter down to your sweet spot.
• ❌ Ignoring mandatory requirements: If a solicitation requires ISO 9001 certification and you don't have it, your bid will be declared non-compliant — regardless of how good the rest is. Check mandatory criteria first.
• ❌ Copy-pasting from previous proposals: Evaluators can tell. Tailor every proposal to the specific solicitation. Reference the client's stated objectives and requirements by name.
• ❌ Not asking questions during the bidding period: If something is unclear, ask. Questions are submitted through the official channel and answers benefit all bidders. It's not a sign of weakness — it shows you're thorough.
• ❌ Underestimating the timeline: Quality government proposals take 2–6 weeks to prepare. Don't start the day before the deadline. Monitor upcoming opportunities with GovBids alerts so you have maximum lead time.
• ❌ Forgetting about security requirements: Many contracts require Reliability Status or Secret security clearances. The process takes months — start early.
• ❌ Not requesting debriefs: After a loss, you have the right to request a debrief. The government will tell you where you scored well and where you fell short. This feedback is invaluable for improving future bids.

The "Buy Canadian" Policy and What It Means for SMEs

In recent years, the Canadian government has strengthened its commitment to supporting domestic businesses through procurement. The evolving "Buy Canadian" framework is designed to give Canadian companies — particularly small and medium-sized enterprises (SMEs) — a competitive advantage in federal procurement.

What This Means in Practice

• Set-asides for Canadian businesses: Certain procurements below trade agreement thresholds are restricted to Canadian suppliers only.
• SME procurement targets: The government has committed to awarding a percentage of contracts to small businesses, Indigenous businesses, and social enterprises.
• Simplified procurement: For lower-value contracts, the government uses simplified procurement processes that are more accessible to smaller firms.
• Regional considerations: Some procurements include regional economic benefit requirements, which can favour local suppliers.

Trade Agreement Thresholds (2026)

Canada's trade agreements (CFTA, CPTPP, CUSMA, etc.) require open bidding above certain dollar thresholds. Below these thresholds, the government has more flexibility to prioritize Canadian suppliers:

• Goods: ~$30,300 (CFTA) to ~$100,000+ (international agreements)
• Services: ~$105,700 (CFTA) to ~$130,000+ (international)
• Construction: ~$264,400 (CFTA) to ~$13M+ (international)

Below these thresholds, procurements can be limited to Canadian suppliers. This is where SMEs have the biggest opportunity. Use GovBids to browse tenders and filter by category and value to find these opportunities.

Useful Links & Resources

Last updated: February 2026. This guide is for informational purposes only and does not constitute legal or business advice. Government procurement rules and thresholds are subject to change.