The Buy Canadian Policy, in force since December 16, 2025, favours Canadian suppliers and Canadian content in large federal procurements. Since June 15, 2026 it covers competitive strategic procurements of $5 million and up, down from $25 million. It does not set aside small contracts for Canadian suppliers.
General information, verified against the Government of Canada sources listed below on September 21, 2026. It is not legal advice; the solicitation and the official policy text govern.
The four parts of the policy
| Policy | What it does | Applies to |
|---|---|---|
| Prioritizing Canadian Suppliers and Canadian Content | Gives Canadian suppliers and Canadian content an advantage in the evaluation of competitive strategic procurements in designated sectors: defence and security, health and pharmaceutical, infrastructure, construction and transportation, information and communications technology, and consumer and industrial goods. | $25 million and up from December 16, 2025; $5 million and up from June 15, 2026 |
| Prioritizing Canadian Materials | Requires Canadian-produced steel, aluminum and wood in major federal construction and defence projects. | Contracts of $25 million or more that require at least $250,000 of those materials |
| Reciprocal Procurement | Awards non-defence contracts only to Canadian suppliers, goods and services, or to those of trusted trading partners. | Non-defence contracts |
| Buy Canadian Procurement Policy Framework | The overarching framework the policies above sit within. | In force December 16, 2025 |
A Small Business Procurement Program runs alongside the policy, aimed at making federal procurement easier for Canadian small businesses.
How Canadian suppliers are prioritized
In a covered procurement, a Canadian supplier's financial proposal is reduced by 10 percent for evaluation only, and competition is limited to Canadian suppliers unless a trade agreement applies, in which case suppliers of that trading partner may also compete.
Canadian content is worth 25 percent of the evaluation, in one of two ways: 25 percent of the total score for Canadian value-added in point-rated evaluations, or 25 percent applied to the financial proposal in price-based evaluations. These adjustments affect the evaluation only, never the price paid.
Who counts as a Canadian supplier
- A place of business in Canada where it conducts activities on a permanent basis.
- Registered and filing taxes in Canada, such as GST/HST and corporate income tax.
- A registered address in Canada, and staff or day-to-day business activities in Canada.
- No subcontracting to suppliers outside Canada in a way that leaves minimal value added in Canada.
A joint venture qualifies when each of its members has a place of business in Canada.
What bidders must submit
Two attestations: a supplier eligibility attestation, confirming status as a Canadian supplier or a supplier of an applicable trading partner, with business addresses; and a Canadian content attestation declaring the total Canadian value-added, broken down by line item. A false attestation risks disqualification, liquidated damages, termination of the contract, or ineligibility under the Ineligibility and Suspension Policy.
Exceptions
With ministerial approval, the policy can be set aside for best value (a cost increase of 25 percent or more), the public interest, no Canadian capacity or availability, undue delay with critical defence or security impact, and commercial or military off-the-shelf products.
How it fits with trade agreements
Trade agreements still apply. For federal departments from January 1, 2026 to December 31, 2027, the Canadian Free Trade Agreement covers goods from $34,700 and services and construction from $139,000, and agreements such as CETA, the CPTPP and the WTO-GPA cover goods and services from $239,200 and construction from $9,200,000. When a trade agreement applies to a covered procurement, suppliers from that trading partner can compete alongside Canadian suppliers.
Sources
- Buy Canadian Policy (CanadaBuys)
- Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurements (CanadaBuys)
- Buy Canadian update: strategic procurement threshold lowered to $5 million (CanadaBuys)
- Buy Canadian backgrounder, December 2025 (PSPC)
- Contracting Policy Notice 2025-8: Trade agreements thresholds update (Treasury Board)
Verified September 21, 2026.
Frequently Asked Questions
What is the Buy Canadian Policy?
A set of federal procurement policies, in force since December 16, 2025, that favour Canadian suppliers and Canadian content in large strategic procurements, require Canadian steel, aluminum and wood in major construction and defence projects, and limit non-defence contracts to Canadian suppliers or those of trusted trading partners.
What is the Buy Canadian threshold?
For the policy on prioritizing Canadian suppliers and content, competitive strategic procurements of $5 million and up since June 15, 2026 (it was $25 million and up from December 16, 2025). For the policy on Canadian materials, contracts of $25 million or more that require at least $250,000 of steel, aluminum or wood.
Does the Buy Canadian Policy set aside small contracts for Canadian suppliers?
No. It works through large strategic procurements, not set-asides for small contracts. Below $5 million, the policy on prioritizing Canadian suppliers and content does not apply. Separate programs, such as the Procurement Strategy for Indigenous Business, do use set-asides.
How are Canadian suppliers prioritized?
In covered procurements, a Canadian supplier’s financial proposal is reduced by 10 percent for evaluation purposes only, and competition is limited to Canadian suppliers unless trade agreements apply. Canadian content counts for 25 percent of the evaluation, either as 25 percent of the total score or applied to the financial proposal. None of this changes the price actually paid.
Who counts as a Canadian supplier?
A supplier with a place of business in Canada where it works on a permanent basis, that is registered and files taxes in Canada, keeps a registered address and staff or day-to-day operations in Canada, and does not subcontract work abroad in a way that leaves little value added in Canada. A joint venture qualifies if each member has a place of business in Canada.
What do bidders have to submit?
Two attestations: one confirming status as a Canadian supplier or a supplier of an applicable trading partner, and one declaring the Canadian value-added in the offer with a line-item breakdown. A false attestation can lead to disqualification, liquidated damages, contract termination or ineligibility.
Are there exceptions?
Yes, with ministerial approval: best value (a cost increase of 25 percent or more), public interest, no Canadian capacity or availability, undue delay with critical defence or security impact, and commercial or military off-the-shelf products.
Bid on Buy Canadian procurements with ProposalForge
ProposalForge's Canadian Content calculator checks each opportunity against the current Buy Canadian threshold and helps you document Canadian value-added, with customer content stored in Canada.