A successful pilot is no guarantee of a public-sector contract

For Canadian technology firms, building a product is only part of the challenge. The harder test can be persuading a major customer to adopt it. In digital health and advanced manufacturing, that first substantial sale often depends on proving that a new solution works in real conditions, evidence that public-sector buyers can help generate.

Hospitals, health authorities, municipalities, universities and federal departments buy goods and services on a significant scale. A caref...

ully designed public-sector contract can give a small or medium-sized business an early customer, operational feedback and a reference that may help it win further business in Canada and abroad. But moving from a promising trial to regular use is far from automatic. Public buyers must protect public funds, ensure fair competition and assess safety, privacy and cybersecurity, while suppliers face processes that can be slow, complex and difficult to navigate.

The Competition Bureau of Canada has identified several obstacles to competition in digital-health procurement, including fragmented rules, restrictive contract terms, lengthy purchasing cycles, risk aversion and an emphasis on price. It also warns that buyers may favour specifications based on technologies they already know, making it harder for unfamiliar products to gain a fair hearing. The Bureau’s findings concern health-care procurement, but they illustrate why a pilot alone may not be enough to secure a lasting contract.

A trial can produce encouraging results and still come to a halt if no budget, internal champion or route to purchase has been agreed in advance. In health care, a solution may also need to satisfy privacy, interoperability and clinical-governance requirements before it can be integrated into routine practice. For manufacturers, questions about reliability, safety, maintenance, training and compatibility with existing systems can be decisive.

Small firms can reduce the risk of a dead-end pilot by discussing the next steps before testing begins. They should establish who will evaluate the product, what measures will define success, who will own implementation and what procurement process could follow if the results are positive. A clear agreement can also set out data access, security obligations, support requirements and the timetable for decisions.

Procurement criteria matter as much as the route to market. A lowest-price tender may suit a straightforward purchase, but it can miss the longer-term gains offered by a new technology. A digital-health system, for example, might cost more initially while reducing repeat appointments, staff workload or avoidable admissions. In manufacturing, a solution could justify its price through less downtime, lower energy use, improved safety or reduced maintenance costs.

The Government of Canada’s Health and Biosciences Economic Strategy Table has recommended value-based purchasing across health systems. Its report argues that decisions focused narrowly on costs within individual services can overlook benefits to patients and the wider system. It proposes assessing price alongside outcomes, quality of life, reduced demand for costly care and broader economic effects. The report also recommends federal leadership and collaboration to develop practical approaches, including the possibility of a health procurement innovation agency. These are policy recommendations, not evidence that a common model has been adopted across all health systems.

The Competition Bureau’s guidance for procurement authorities similarly encourages clear, open processes. It recommends reviewing tender requirements, allowing equivalent or alternative solutions and seeking supplier feedback on draft specifications. Weighted assessments can consider technical quality, sustainability, reliability and costs over a product’s lifetime, rather than treating the initial price as the only measure of value. Such approaches still require transparent rules and fair competition.

For a supplier, the case for adoption should therefore be built around the buyer’s operational needs, not just the product’s features. Health technology firms may need to show clinical relevance, accessibility, data protection, cybersecurity and compatibility with existing systems. Manufacturers may be expected to demonstrate measurable improvements in performance, reliability or operating costs. Evidence is most persuasive when it addresses the criteria a purchaser will actually use.

Federal programmes offer some routes for firms to test and demonstrate innovations. Public Services and Procurement Canada launched its Small Business Procurement Program on 6 July 2026, with the stated aim of lowering barriers and making federal contracting easier for small businesses. The initiative is linked to Innovative Solutions Canada, which connects government departments with Canadian companies developing new technologies. The government says the programme is intended to help firms validate products with public-sector customers and, where appropriate, move towards larger-scale procurement. It does not guarantee contracts for participating businesses.

Innovative Solutions Canada’s Testing Stream allows government partners to assess pre-commercial products and services in operational settings. Applicants need an innovation ready for safe testing and must provide detailed technical information and evidence. The programme considers factors including readiness, deployment capacity, certifications, timing and whether a federal partner is interested. Applications are assessed competitively, and participation does not automatically lead to a wider purchase.

Public Services and Procurement Canada’s 2026–27 departmental plan sets a target of awarding at least a quarter of contract value to small and medium-sized businesses by 31 March 2027. The plan describes this as a goal, alongside measures to simplify federal procurement and improve access for smaller suppliers; it is not a guarantee that any individual company will secure work.

For Canadian firms, the practical task is to prepare for procurement before a pilot starts: understand the buyer’s problem, identify measurable outcomes, plan for integration and support, and address compliance requirements early. Public purchasing can help an innovative business establish credibility and gather evidence, but the transition from trial to adoption depends on a defined purchasing path and a clear demonstration of value.

Source: Noah Wire Services