The Canadian government has unveiled the first measures under a new Small Business Procurement Program, promising to simplify federal contracting and widen access for smaller firms that have long struggled with the time, cost and complexity of bidding for public work.
Public Services and Procurement Canada announced the changes on July 6, saying the programme is designed to remove barriers that have discouraged small businesses from taking part in federal purchasing. The move i...
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s part of a broader effort to modernise procurement and support the government’s Buy Canadian agenda, which began taking effect in December 2025.
According to the department, the first phase of the programme will streamline procurement processes, reduce bid preparation times and make federal opportunities easier to find and pursue. Officials said the aim is to give more Canadian small businesses a realistic chance to compete for contracts and to ensure government buying power supports domestic jobs, innovation and supply chains.
The initiative is being paired with a strengthened role for Innovative Solutions Canada, a programme run by Innovation, Science and Economic Development Canada. The government said the scheme will connect departments with Canadian firms to develop, test and commercialise new technologies, and will receive $79.9 million over five years to help innovators move from pilot projects to scaled procurement.
The latest measures build on the Buy Canadian Policy, which the federal government implemented on December 16, 2025 to prioritise Canadian suppliers, materials and content in public purchasing. Ottawa has said the policy is intended to bolster domestic industries and make supply chains more resilient.
The government says it buys more than $37 billion in goods, services and construction each year. It added that, by June 2, the Buy Canadian policy had already been applied to solicitations worth more than $3 billion, with $721 million in contracts awarded.
Small and medium-sized businesses account for about 47.2% of private-sector GDP and employ 63.6% of private-sector workers, according to government figures. Ministers said the new procurement programme is intended to translate that economic weight into a larger share of federal contracts.
Joël Lightbound, the minister of government transformation, public works and procurement, said the initiative marked “a real turning point” for small businesses. Mélanie Joly, the industry minister, said the changes would help firms win contracts and keep more taxpayer money circulating in Canada. Rechie Valdez, the minister responsible for small business and tourism, said the measures would make it easier for entrepreneurs to grow while strengthening domestic supply chains.
Source: Noah Wire Services
