Canada Unveils New Small Business Procurement Measures

Public Services and Procurement Canada

Reducing barriers, simplifying processes and increasing access to opportunities under the Buy Canadian Policy

Small businesses are the backbone of Canada's economy, driving innovation, creating good jobs, and strengthening communities across the country. That's why the Government of Canada is taking concrete steps to ensure they have better access to federal opportunities.

Today, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, and the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced a new set of targeted simplification measures that respond directly to concerns raised by small businesses about the complexity, cost and time required to participate in federal procurement.

In launching the first series of measures under the new Small Business Procurement Program (SBPP), the Government of Canada will work to remove long-standing barriers that have made federal contracting difficult for smaller firms, and to ensure they are better positioned to compete for and win government work. These changes will modernize procurement processes, improve access to opportunities for small businesses, and ensure they can play a stronger role in delivering federal priorities while supporting jobs, innovation, and a more resilient Canadian economy.

In concert with the SBBP, Innovation, Science and Economic Development (ISED) will leverage the Innovative Solutions Canada (ISC) program, which will help connect federal departments to Canadian firms to develop, test and commercialize their innovative technologies.

The ISC program will create an innovation pathway into federal procurement to support innovation-focused procurement opportunities for Canadian small businesses and help the government meet its operational needs. Bolstered by $79.9 million funding over five years, the ISC will help Canadian innovators develop, test and validate new technologies by providing opportunities to work directly with the federal government as a first customer. It will also expand support for Canadian small businesses to participate in federal procurement, making it easier for them to secure contracts, demonstrate their products at scale and build the track record needed to access new domestic and international markets.

Measures announced today respond to feedback from small businesses seeking to work with the Federal Government, and are designed to remove barriers and create a more accessible, predictable, and efficient procurement experience.

Building on PSPC's procurement modernization initiatives that have been introduced since 2017, the SBPP and ISC programs will reduce complexity, shorten bid preparation times, and improve the ability of Canadian small businesses to compete successfully for federal contracts, and support the Government's Buy Canadian Policy.

By giving more Canadian small businesses a fair shot at federal contracts, these measures will help unlock growth and create good jobs across the country. They will strengthen Canada's industrial base by building more resilient domestic supply chains and ensuring that government purchasing power is working harder to support Canadian businesses and communities. At a time when Canada is focused on building a stronger economy, these measures will help more entrepreneurs turn opportunity into growth and success.

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