Summary: Discusses the legal requirements for selling to the host government, including whether the government has agreed to abide by the WTO Government Procurement Agreement or is a party to a government procurement chapter in a U.S. FTA. Specifies areas where there are opportunities.
Last Published: 9/30/2019
Many governments finance public works projects through borrowing from the Multilateral Development Banks. Please refer to "Project Financing" Section in "Trade and Project Financing" for more information.

Canada is a signatory to three international agreements relating to government procurement: The World Trade Organization (WTO) Agreement on Government Procurement (GPA), the North American Free Trade Agreement (NAFTA), and the 2010 United States-Canada Agreement on Government Procurement. The current agreements provide U.S. businesses with access to procurement conducted by most Canadian federal departments and many provincial entities. U.S. suppliers have access under these trade agreements to procurement by seven of Canada’s Crown Corporations, which are government organizations that operate following a private sector model, but generally have both commercial and public policy objectives. Canada currently has more than 40 Crown Corporations.

Public Services and Procurement Canada (PSPC) www.tpsgc-pwgsc.gc.ca/comm/index-eng.html, formerly known as Public Works and Government Services Canada (PWGSC), is the government's largest purchasing organization, averaging 60,000 transactions and purchasing more than US$14 billion in goods and services annually. PSPC buys goods for the majority of federal government departments; most departments buy services themselves.

The Canadian government has instituted an "Integrity Regime" for public procurement managed by PSPC. This policy can restrict opportunities for firms that have been convicted of or pled guilty to corruption anywhere in the world. Details on the government’s Integrity Regime are available at www.tpsgc-pwgsc.gc.ca/ci-if/ci-if-eng.html.

The Canadian federal government's official, free, Internet-based electronic tendering service is buyandsell.gc.ca/tenders. It is the authoritative source for federal government procurements that are subject to trade agreements or subject to departmental policies that are below trade agreement thresholds. Features of the website include:
  • Search for opportunities using simple, plain language search terms to match your good or service to available tenders.
  • Narrow search results to opportunities by region, Goods and Services Identification Number (GSIN), department, and more.
  • Locate procurement information for any tender, such as previous contracts or pre-qualified suppliers who hold standing offers or supply arrangements.
Federal government buyers use the Supplier Registration Information (SRI) service to identify potential suppliers for purchases that are not subject to any of the trade agreements buyandsell.gc.ca/for-businesses/selling-to-the-government-of-canada/register-as-a-supplier. All sellers must be registered on the SRI to sell to the Government of Canada.

The Canadian federal government's fiscal year is from April 1 to March 31.

Advocacy
U.S. companies bidding on Government tenders may also qualify for U.S. Government advocacy. A unit of the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies.

The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agencies expressing support for the U.S. bidders directly to the foreign government.  Click here for more information: 
https://2016.export.gov/advocacy/

Multilateral Development Banks and Financing Government Sales

Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). Please refer to the Project Financing Section in Trade and Project Financing for more information. A helpful guide for working with the MDBs is the Guide to Doing Business with the Multilateral Development Banks.
 
The U.S. Department of Commerce’s (USDOC) International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.

 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.