How federal contracts work
What every firm should know before its first federal bid, including what changed in 2026.
What a tender is
The federal government buys more than $37 billion in goods, services and construction every year. When a department needs something, from moving services to software, it posts a tender: a public notice that describes the work and invites businesses to make an offer, called a bid. Federal tenders are posted on CanadaBuys, the government’s official tendering site.
Any business that can do the work can bid. You don’t need to have worked for the government before.
How it works
-
Register
Create a free SAP Business Network account through CanadaBuys and answer the government’s supplier questions. You’ll also need a CRA business number.
-
Find
Search CanadaBuys for the kind of work your firm already does.
-
Read
Each tender comes with documents: what the buyer needs, the mandatory requirements, how bids are scored, and the closing date and time.
-
Ask
If something is unclear, send your question to the contracting officer before the deadline for questions. Answers are shared with every bidder as an amendment.
-
Submit
Send your bid exactly the way the tender asks, before the closing time. Late bids are rejected.
-
Evaluation
The buyer checks every mandatory requirement first. Bids that pass are then compared on quality, price or both, as the tender describes.
-
Award
The winner gets the contract and the award is published. Every other bidder can ask for a debriefing to learn how their bid was scored.
The words you’ll see
| Tender or solicitation | The buyer’s request for bids, with all its documents. |
|---|---|
| RFP | Request for proposal. You explain how you’d do the work, and your answer is scored, usually along with price. |
| RFQ | Request for quotation. Mostly about price, often for simpler needs. |
| Standing offer | You agree to prices in advance, and departments order from you when they need to. |
| Supply arrangement | You qualify once to join a list of suppliers, then compete with the others on it for individual contracts. |
| Mandatory requirement | A pass or fail condition. Miss one and your bid is out. |
| Rated requirement | A scored question. A stronger answer earns more points. |
| Closing date | The deadline for bids, down to the minute. |
| Amendment | A change or answer the buyer publishes after the tender goes out. |
| Debriefing | An explanation from the buyer of how your bid was scored. |
Why it’s worth bidding
- Repeat work from one qualification. Supply arrangements and standing offers can stay open for years. Qualify once, and you can be invited to compete for contracts again and again.
- A reference that wins the next contract. A completed federal contract is exactly the kind of experience the next buyer asks for.
- Everything is out in the open. Contract awards are published, so you can see what buyers pay, how often they buy and who wins before you decide to bid.
What changed in 2026
Public Services and Procurement Canada launched the Small Business Procurement Program on July 6, 2026. Treasury Board’s Contracting Policy Notice 2026-4 now directs departments to design procurements “with small businesses in mind.” In practice, that means:
- Simpler requirements. Requirements should not be “more complex, restrictive or burdensome than is necessary to meet the operational need.” Contracting officers are told to challenge unnecessary steps, certifications and paperwork.
- Contracts in pieces you can deliver. Departments must consider splitting large requirements into smaller lots or regional components, so more firms can bid on a part they can deliver well.
- Easier cash flow. Departments are told to check whether payment terms strain smaller suppliers, and to use milestone or progress payments where it makes sense.
- A way to prove yourself. Budget 2025 set aside $79.9 million over five years for Innovative Solutions Canada to award pilot contracts to small businesses.
- Clear feedback. Timely debriefings and prompt dispute resolution are part of the program, so you can learn why a bid won or lost.
Since December 16, 2025, the Buy Canadian Policy has also given Canadian suppliers priority on strategic federal contracts worth $5 million or more, with extra points for Canadian content. By June 25, 2026, it applied to more than $3 billion in solicitations. Because bids earn points for Canadian content, the firms that win these contracts have good reason to bring in Canadian subcontractors.
Why bids get rejected
- A mandatory requirement is missed, or the bid doesn’t clearly show it’s met
- The bid arrives after the closing time
- A required form, certification or signature is missing
- The files break the tender’s rules on size or format
- The price isn’t given in the format the tender asks for
Where Bid Desk comes in
Tender Watch finds the open tenders that fit what your firm already does. A one-page brief tells you whether one is worth bidding, and a compliance check makes sure your bid isn’t rejected for something avoidable.
Sources: How to register your business, CanadaBuys. Contracting Policy Notice 2026-4, Treasury Board of Canada Secretariat. Small Business Procurement Program announcement, July 6, 2026, and Buy Canadian Policy, Public Services and Procurement Canada. Figures as published by the Government of Canada.