We mean all transactions between a public- or parapublic-sector organization and a private-sector supplier.  “Transactions” means all purchases, sales, leasing, construction, demolition, licensing, etc.  “Public- or parapublic-sector organization” means all government departments, agencies, boards, offices, municipalities, schools, hospitals, CLSCs, public-sector corporations, Crown corporations, etc.  Finally, a “private-sector supplier” includes independent workers, small businesses, and larger companies (regardless of their legal form with the exception, in some cases, of non-profit organizations).

Procurement contracts cover all forms of supply, from goods and services (stationery, clothing, tools, software, vehicles, specialized products., etc) to professional services (architecture, engineering, management or other), auxiliary services (security guards, marketing, travel agencies, etc.) and construction (buildings, roads, bridges, construction, demolition, renovations, etc.).

Not all government organizations buy all kinds of goods and services. It’s important to know which ones are your most promising prospects and to understand how they go about issuing procurement contracts.

How big is the government procurement market in Canada?

According to numerous sources, government procurement transactions amount to more than $100 billion every year, involving upwards of 80,000 transactions and 17,000 different types of goods and services for all levels of government (federal, provincial, regional, local, municipal, health, education, etc.). In addition, it is worth remembering that government procurement is fairly immune to the ups and downs of regular markets.

Who can win government contracts?

Generally speaking, any company that is able to fulfil the mandate is eligible to bid on a contract. Nonetheless, contracts are not awarded at random and are not there for the asking. To win a contract, a company must make sure that it meets the customer’s requirements, respects the bidding conditions and is competitive! You also have to know that a given contract or call for tenders is available in your industry.

Is winning a government contract complicated?

Like any kind of contracts, government procurement has its own rules and procedures. Once you have learned these rules, though, you can easily develop your business. In addition, to encourage competition between interested companies, governments are increasingly tending to make procurement processes transparent.

Many factors influence procurement procedures. The main ones are the nature of the client organization, its jurisdiction (federal, provincial, regional, local), the type of good or service required, and the value of the contract to be awarded. You have to properly understand the procedures and conditions specific to the client organization, depending on your goods or services.

At this point in the process, a bit of expert assistance from professionals can save you time and unnecessary expense and improve your chances of success.