# What the federal Buy Canadian policy means for small contractors

> Since December 16, 2025, the federal Buy Canadian policy gives Canadian suppliers an edge in federal procurement. For larger strategic procurements of $5 million or more, Canadian bids can get an evaluation advantage and Canadian content can be scored, and large construction and defence contracts favour Canadian steel, aluminum and wood. Most small contracts are less affected, but subcontractors and suppliers to bigger bidders benefit.

By James DeGreef. Updated 2026-10-24. Facts checked 2026-10-24. Source page: https://crewbid.tech/articles/buy-canadian-policy

Trade tensions with the United States pushed governments across Canada to look harder at where their money goes. Federally, the result is the Buy Canadian policy, which took effect on December 16, 2025. Several provinces made similar moves for their own buying.

If you bid on federal work in BC or Alberta, or supply firms that do, it is worth knowing what changed and what did not.

## What the policy does

Public Services and Procurement Canada describes the policy as giving preference to Canadian suppliers and Canadian goods in federal procurement, within Canada's trade agreement obligations. The main pieces are:

- **Strategic procurements of $5 million or more:** federal buyers can apply an evaluation advantage to bids from Canadian suppliers, and can score Canadian content, so a bid with more Canadian value can rank higher.
- **Large construction and defence contracts of $25 million or more:** a requirement or strong preference for Canadian steel, aluminum and wood, where available.
- **Reciprocal procurement:** limits on suppliers from countries that do not give Canadian firms fair access to their own public markets.

The exact rules for each procurement appear in the solicitation documents. Read the evaluation and certification sections carefully, because bidders may have to declare where they are based and where their goods come from.

## Does it affect small contracts?

Most small federal contracts, like a single building's janitorial service, snow clearing at a detachment or a small renovation, fall well below the $5 million strategic threshold. Those contracts are still bought under the usual federal rules. See [federal contracts in BC](https://crewbid.tech/guides/federal-contracts-bc).

But the policy can still matter to small firms:

- **Subcontractors and suppliers.** Large bidders scored on Canadian content have a reason to use Canadian subcontractors and materials. A local trade or a BC fabricator becomes more valuable to them. See [subcontracting on public work](https://crewbid.tech/guides/subcontracting-public-work).
- **Larger service bundles.** Some multi-year facility service contracts are big enough to be covered.
- **Materials.** If you supply steel, aluminum or wood products into large federal construction, Canadian origin now carries weight.

## How to be ready

**Know your own content.** Where are you based, where do your people work, and where do your main materials and equipment come from? Keep a simple record in your [bid library](https://crewbid.tech/articles/bid-library).

**Read the certifications.** False declarations can disqualify a bid or lead to bigger trouble. Only certify what you can prove.

**Talk to prime contractors.** If you are a subcontractor, make sure the firms bidding big federal work know you are local and Canadian. Many are actively looking.

**Register properly.** You need CanadaBuys and the supplier registration in place to bid or to be found. See [how to register on CanadaBuys](https://crewbid.tech/guides/register-on-canadabuys).

## What about provincial and municipal work?

Provincial and municipal buyers have their own policies, and the trade agreements that cover them, such as the Canadian Free Trade Agreement and the New West Partnership, limit discrimination between Canadian provinces. Some provinces and municipalities have taken steps to favour Canadian suppliers over those from certain other countries. Check each tender's terms. See [public tender thresholds](https://crewbid.tech/guides/public-tender-thresholds-bc) and [the New West Partnership](https://crewbid.tech/articles/alberta-new-west-partnership).

## The bigger picture

Buy Canadian is part of a wider move toward procurement with goals beyond the lowest price: social value, Indigenous participation, environmental performance and now domestic supply. For small Canadian firms, each of these tends to help, because they reward being local and accountable. Read [social procurement in BC](https://crewbid.tech/articles/social-procurement-bc) and [green and low-carbon requirements](https://crewbid.tech/articles/green-requirements-public-tenders).

## Sources

- [Buy Canadian Policy (Public Services and Procurement Canada)](https://www.canada.ca/en/public-services-procurement/services/acquisitions/selling-federal-government/buy-canadian.html)
- [How the government buys (Government of Canada)](https://www.canada.ca/en/public-services-procurement/services/acquisitions/support-for-businesses/understand-procurement-process/how-government-buys.html)