How to sell to the Government of Canada as a small business

The federal government buys just about every kind of good and service. Public Services and Procurement Canada (PSPC) handles a significant portion of that for departments and agencies. For a small business, the work is to register, find the needs that fit, and submit a bid that answers every requirement. No result is assured: each bid is evaluated against the criteria in the tender.

Contract or grant: the difference

A contract is a sale. The government buys a good or service, you deliver it, and you are paid under the contract’s terms. You generally win it by bidding.

A grant funds part of a project in your business. You apply under a program’s rules, and the administering body decides.

The two can work together. A funding program may cover what you need in order to be able to deliver. The contract is still a sale you have to win.

Where to start: the steps, in order

CanadaBuys calls registering your first step. We suggest this order:

1. Get a CRA business number. Any business that wants to sell to the Government of Canada needs one. You will need it if you win a contract.
2. Create your SAP Business Network account. The account is free. You need it to bid on opportunities posted by PSPC. Have your legal business name ready: you can only have one account per CRA business number.
3. Complete the Government of Canada questionnaire. It is required before you can submit a bid. Do it early, so you have more time for the bid itself.
4. Check what the government buys in your field. Find your UNSPSC codes. You can use them to search tender and award notices and contract history.
5. Subscribe to alerts. New tender notices and amendments are published daily.
6. Attend a seminar. Procurement Assistance Canada offers free seminars.
7. Start with a need your size. Read all the documents before you decide. You can also signal your interest in partnering with other businesses on an active tender.

Finding tenders and bidding

On CanadaBuys, you can search by title, category, closing date or keyword. The site also shows notices from other organizations: other departments, provinces, municipalities, hospitals and schools. Each one receives bids in its own way, and the notice says how.

The description of each opportunity explains how to prepare your bid, when it is due and how it will be evaluated. Address every point. If you have a question or find an error, contact the contracting officer. The same person handles requests to extend the closing date.

If you are not selected, ask for a debriefing. If you have an issue with a federal contract, the Office of the Procurement Ombud can help resolve contract disputes. This neutral and independent organization also investigates complaints from Canadian businesses.

Low-dollar buys and public tenders

The threshold depends on what is being bought. According to CanadaBuys:

That page dates from December 7, 2023. Confirm these thresholds with Procurement Assistance Canada. Other thresholds also apply: a tender covered by a trade agreement is published when it reaches that agreement’s threshold. We do not list those amounts here. Confirm the applicable threshold in the notice.

Standing offers and supply arrangements

Both tools serve recurring needs. Neither one is a contract.

Standing offer. You offer goods or services at pre-arranged prices. You bid the same way as on any other solicitation. A contract exists only once a call-up is made, and there is no obligation before that. Prices must be firm, so this tool suits clearly defined needs.

Supply arrangement. You become a pre-qualified supplier. Departments then solicit bids from that pool for each requirement. Only suppliers pre-qualified when the solicitation is issued can bid.

There is no set date. Watch for requests, which may appear several months before the planned effective date.

The Small Business Procurement Program

PSPC launched the first measures on July 6, 2026. For reference, a small business has 499 employees or fewer, including those of its affiliates, or is a joint venture whose total number of employees does not exceed 499.

The backgrounder sets out two phases.

• Beginning in summer 2026: requirements proportionate to the opportunity, improvements to the Procura chatbot, and standardized procurement documents.
• By the end of 2026: plain language tender summaries, a “Tell Us Once” approach to attestations, structured response formats, pre-submission completeness checks and a supplier recognition program.

We could not confirm that every second-phase measure is in place yet.

Set-asides. The Buy Canadian Framework says opportunities are reserved for Canadian small businesses, with mandatory set-asides applied where feasible. The documents we reviewed do not say which purchases are set aside or from when. Do not assume a tender is set aside: check the notice.

The Buy Canadian Policy

The policy came into effect on December 16, 2025. It groups several instruments, and their scopes differ.

A Canadian supplier has, among other things, a physical location in Canada where work happens, is registered with the CRA and files taxes in Canada. The Policy gives the detailed definition. Exclusions and exceptions exist. For existing standing offers and supply arrangements, the requirements apply at the next renewal, unless a department brings them in earlier.

These thresholds are high for a small business. Even so, the prime bidder on a large procurement may look for Canadian goods or services for its content.

Procurement Assistance Canada

This PSPC service offers free seminars, resources and personalized assistance. It covers how procurement works, searching for opportunities and preparing bids. The CanadaBuys Service Desk answers questions about registration.

Innovative Solutions Canada

This program is for innovators and SMEs. The Challenge Stream sets real challenges to solve. Through the Testing Stream, departments can buy and test pre-commercial goods and services. The program is to receive $79.9 million over five years beginning in 2026-27, in support of the Buy Canadian Policy. Open opportunities change often and have specific closing dates.

If the contract has security requirements

Some contracts require security screening. PSPC’s Contract Security Program covers screening of the organization and its personnel. An organization must be sponsored before it can begin screening. For Canadian contracts, the sponsor can be a federal officer or, for a proposed subcontractor, an already cleared organization. Read this requirement early in the tender, and confirm timelines on the official pages.

Indigenous businesses

The Procurement Strategy for Indigenous Business can limit some tenders to eligible businesses. Among other conditions, a business must be listed on the Indigenous Business Directory or on a modern treaty business list. Departments and agencies also have a mandatory minimum target of 5% of the total value of their contracts. The full conditions are on those pages.

When will you be paid?

Goods and services. The Directive on Payments sets a 30-day payment term. It starts when both the invoice is received and the goods or services are accepted. The contract or legislation can set different terms.

Construction. The Federal Prompt Payment for Construction Work Act requires payment no later than the 28th day after a proper invoice is received, unless a notice of non-payment is given by the 21st day. It covers projects on federal real property or federal immovables. In December 2023, Ontario, Saskatchewan and Alberta were designated: that work falls by default under the provincial regime there.

Quebec has its own system

Quebec government contracts do not follow the rules described here. The Système électronique d’appel d’offres (SEAO), in French, brings together notices from most Quebec public bodies, Santé Québec, the education network and municipalities. Quebec also tells businesses to join the SEAO supplier directory, which public bodies can search for contracts below tender thresholds. If you are targeting the Quebec market, do this separately.

Funding what you need to deliver

A contract can call for a machine, a certification or new skills. Programs may help fund equipment, training or hiring. Manufacturers affected by tariffs can also read our guide. Check each program’s eligibility and timing before you buy.

Our free assessment can check what is open for your project. We do not offer bidding services and we do not prepare bids. An assessment does not guarantee funding or a contract.

Canadian Funding Partners is an independent advisory firm, not affiliated with the Government of Canada, and does not administer these programs. This page is general information, not tax or legal advice. Confirm current terms on the official pages.