Feds say they'll simplify procurement to get more contracts to small businesses

Procurement Minister Joel Lightbound gives remarks at a press event at an L3Harris MAS facility in Mirabel, Que., on Monday, March 30, 2026. THE CANADIAN PRESS/Christopher Katsarov

TORONTO — Ottawa is promising to simplify procurement processes to make it easier for small- and medium-sized businesses to land federal contracts.

Procurement Minister Joël Lightbound is in Toronto today to announce plans to fix the clunky mechanisms that have made it difficult for small businesses to win federal work.

The government says, starting this summer, Public Services and Procurement Canada will be redesigning contracts with small businesses in mind by making sure that requirements are proportional to the work being done.

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The department says by the end of the year, it will try to put more of its tenders into plain language for applicants and find other ways to reduce the administrative burden on prospective vendors.

Last month, the federal government lowered the threshold for its Buy Canadian Policy to a minimum contract value of $5 million from $25 million, expanding the number of federal tenders that must prioritize domestic businesses and materials.

Ottawa also plans to dole out $79.9 million over the next five years through Innovative Solutions Canada to help entrepreneurs test and validate their technologies with the federal government as a first customer.

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Written by Craig Lord in Ottawa

This report by The Canadian Press was first published July 6, 2026.