Ad hoc Supplier Advisory Committee: December 16, 2025

Record of discussion

December 16, 2025, from 1:00 to 2:00 pm (Eastern Time, ET)

Attendees

Co-chairs: Present

• Public Services and Procurement Canada (PSPC), Dominic Laporte, Senior Assistant Deputy Minister (SADM), Procurement Branch (PB)

Member organizations: Present

• Aerospace Industries Association of Canada (AIAC): Dwayne Lucas, Vice President, Special Projects
• Aerospace Industries Association of Canada (AIAC): Michael Baker, Senior Manager, Operations
• Canadian Aboriginal and Minority Supplier Council (CAMSC): Cassandra Dorrington, President & CEO
• Canadian Association of Defence and Security Industries (CADSI): Nicolas Todd, Vice President, Government Relations and Communications
• Canadian Association of Management Consultants (CMC-Canada): Chris Harper, Executive Director
• Canadian Association of Management Consultants (CMC-Canada): Sandy Moir, Partner at Goss Gilroy Inc. Management Consultants
• Canadian Chamber of Commerce (CCC): Alex Greco, Senior Director, Manufacturing & Value Chains
• Canadian Chamber of Commerce (CCC): David Pierce, Vice President Government Relations
• Canadian Federation of Independent Business (CFIB): Michelle Auger, Manager, National Business Issues and Projects
• Canadian Queer Chamber of Commerce (CGLCC): Darrell Schuurman, Co-Founder and CEO
• Canadian Manufacturers and Exporters (CME): Ryan Greer, Vice President, Public Affairs & National Policy
• Women’s Business Enterprises Canada Council (WBE Canada): Jennifer Popowycz, President
• Council for the Advancement of Native Development Officers (CANDO): Ray Wanuch, Executive Director
• TECHNATION, Prateek Sureka, Executive Vice President, Government Relations, and Strategy

Guests

• PSPC, Levent Ozmutlu, Director General, Strategic Policy Sector (SPS)
• PSPC, Ricardo Seoane, Executive Director, SPS

Supplier Advisory Committee secretariat

• PSPC, Clinton Lawrence-Whyte, Director General
• PSPC, Angus O’Leary, Senior Director
• PSPC, Aline Ngarukiyintwali, Manager
• PSPC, Fresnel Devalon
• PSPC, Alfred Ogbumor
• PSPC, Paula McLenaghan
• PSPC, Baaloon Nanang

Welcoming and opening remarks

The government co-chair welcomed and thanked Supplier Advisory Committee (SAC) members for joining the ad hoc meeting for the launch of the Buy Canadian Procurement Policy Framework. He dispensed with the roll call and proceeded directly to the agenda.

Key highlights of the presentation

This meeting built on the September session following Prime Minister’s announcement of the New Buy Canadian Policy as part of the measures to protect, build, and transform Canadian strategic industries. PSPC provided an overview and examined two new policies—the Policy on Prioritizing Canadian Materials in Federal Procurements and Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurements. These policies were developed to increase Canadian participation in federal procurement, and PSPC emphasized that stakeholder input would remain essential as this work moves forward.

Policy on Prioritizing Canadian Materials in Federal Procurement

Effective December 16, 2025, federal construction and defence projects valued at $25 million or more must use Canadian steel, aluminum, and softwood across the entire supply chain. This requirement applies where at least $250,000 worth of these materials is required and a Canadian source of supply is available. This represents a change from previous obligations—formerly limited to the main contractor—to require full supply chain compliance. Upcoming solicitations will include updated clauses to support implementation. These measures are intended to strengthen the use of Canadian materials in major federal procurements.

Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurements

For strategic federal procurements valued at $25 million or more, proposals must include Canadian content as part of the evaluation process. At least 25% of the total score will be based on Canadian content, meaning bidders who maximize Canadian goods, services, and investments will earn higher points. This policy applies to industrial goods, services, and R&D components. The threshold will start at $25 million and gradually decrease to $5 million by spring, expanding the policy’s reach. A monitoring and compliance framework will be implemented to ensure suppliers meet their commitments.

Additional provisions and compliance

Both policies include exceptions that may require ministerial approval, as well as exclusions for materials or services delivered outside Canada. While the focus was on these two policies, work on the Small and Medium Business Procurement Program continues, and will be introduced later.

From a supplier perspective, all these measures offer significant advantages.

Roundtable discussion

CADSI asked how the Government of Canada will assess Canadian firms’ capacity to meet procurement requirements. They stressed that this information is essential for PSPC and for advancing defence industrial strategy and export promotion. CADSI recommended that capacity data be shared across departments, not limited to contracting officers, to enable a coordinated approach. They noted the defence sector’s shift toward sovereign capabilities and requested clarity on alignment with the Buy Canadian Policy.

CADSI also suggested leveraging organizations such as Industry Innovation, Science and Economic Development Canada (ISED) and regional development agencies, which often have deeper insight into industry capabilities than the Department of National Defence (DND). PSPC emphasized that assessing Canadian industry capacity requires cross-departmental collaboration. Contracting officers will engage industry through targeted Requests for Information (RFIs) to identify domestic capabilities, particularly for large procurements. Officers are not expected to have full knowledge of industry capacity; instead, they will rely on industry input and coordination with client departments. PSPC will work with federal partners, including ISED and regional development agencies, to access firm-level insights. For procurements requiring sovereign capabilities, PSPC will collaborate with DND and other stakeholders to refine processes and share lessons learned. Existing clauses requiring assessment of Canadian bidders will be expanded as part of PSPC’s commitment to supporting Canadian industry.

TECHNATION highlighted challenges in assessing Canadian content in information communication technologies (ICT) and software, noting complexities in determining whether code or intellectual property qualifies as Canadian when products have long development histories or global scaling. They also stressed that Canadian content should reflect development location, not only dollar value, and offered sector-specific input for shaping RFIs.

PSPC acknowledged that technology assessments require a nuanced approach. Unlike goods governed by Rules of Origin, digital products often involve multi-country inputs. Indicators of Canadian content may include Canadian jobs, engineering or IP investment, and service or server location. Service delivery is easier to assess, but complex solutions will require tailored methods.

To promote Canadian participation, PSPC will apply a scoring mechanism allocating 25% of evaluation points to Canadian content. This recognizes sector variability and supports holistic assessment. PSPC committed to industry engagement in refining RFIs and emphasized that building digital sovereignty remains a priority.

CANDO asked about the impact of the Buy Canadian Policy on interprovincial trade barriers and its potential to improve trade within Canada. They sought clarity on whether the policy could create challenges or opportunities for alignment across jurisdictions.

PSPC confirmed that the federal government is working with provinces and territories to prevent new barriers and maintain compliance with trade agreements. PSPC is developing a roadmap to extract Canadian value while encouraging adoption of similar principles where feasible. Some jurisdictions, such as Ontario, are exploring legislation aligned with the federal approach.

PSPC further emphasized that the policy provides advantages to Canadian suppliers without restricting interprovincial trade. The department will continue collaboration with provinces and territories to ensure consistency and support implementation. PSPC also highlighted its upcoming Small Business Procurement Program (SBPP). Consultations with industry associations will continue, and stakeholders are encouraged to provide feedback through PSPC’s online platform.

CADSI requested clarification on how the Buy Canadian Policy integrates with defence procurement and governance, coordination across federal entities, and the definition of a “Canadian supplier.” They also sought guidance on edge cases involving foreign multinationals, the mechanics of price and content advantages, and dispute resolution.

PSPC confirmed the policy applies broadly across departments, agencies, and Crown corporations, with tailored implementation for defence through collaboration with DND, ISED, and industry. Exceptions include military off-the-shelf purchases and cases where applying the policy would cause undue delay. Requirements will be adjusted to market conditions when Canadian content is limited.

PSPC stated that supplier eligibility is based on substantive presence in Canada (for example, operations, tax filing), not ownership. Canadian subsidiaries of multinationals qualify if they meet presence criteria. Borderline cases will be assessed individually, distinguishing eligibility from Canadian content scoring, which reflects value-added activities such as jobs, manufacturing, and services in Canada. Bidders should use tender question periods for clarification.

To incentivize Canadian participation, PSPC will apply two evaluation levers: a 10% price preference for eligible Canadian suppliers and up to 25% of total points for Canadian content. Suppliers with significant value-added activity in Canada can benefit from both measures. This approach aims to recognize Canadian inputs while maintaining fairness and trade compliance.

Appeals related to Buy Canadian advantages will no longer fall under Canadian International Trade Tribunal (CITT) jurisdiction; disputes will proceed through judicial review. PSPC anticipates fewer challenges due to clear, objective criteria and will maintain regular engagement with advisory committees and industry to refine guidance and support implementation.

Closing and next steps

The Buy Canadian Policy represents a significant shift in federal procurement, and successful implementation will require collaboration across government and industry. PSPC emphasized the importance of regular engagement with the Supplier Advisory Committee (SAC) and ongoing feedback from associations and stakeholders to refine processes and addressed emerging challenges. Industry input will be critical to ensure clarity and support for suppliers adapting to the new framework.

PSPC committed to providing guidance and implementation support for program officers as the policy evolves and expressed readiness to present to industry groups and associations upon request. Stakeholders are encouraged to reach out at any time and use available feedback channels on PSPC’s website. The department reiterated its goal of working closely with buyers and suppliers to ensure smooth implementation and thanked participants for their contributions and questions during the meeting.