GOVCON WEEKLY

Canadian Procurement Pulse: Your Weekly Contractor Insider

February 23 - March 1 2026

This week delivered more procurement dollars in a single seven-day stretch than most fiscal years produce. Defence Construction Canada posted a $3.74 billion advanced procurement notice for military housing. Infrastructure Ontario awarded a billion-dollar Science Centre contract. We dug into the DCC contract data to figure out who's already on the ground at these bases and where the real openings are. If you are interested in what will be the biggest construction market in 2026, read along. If infra bores you, I apologize! Got to change it up sometimes. Hope you are surviving the winter my friends,

$3.74 Billion Military Housing Expansion: Phase 2

Source: National Defence (Canada.ca) | Date: 2026-02-24

What's Happening: Defence Minister McGuinty announced the second phase of Canada's military housing construction program, with approximately 7,500 new Residential Housing Units planned across all 25 locations where the Canadian Forces Housing Agency operates. Defence Construction Canada issued an advanced procurement notice for projects valued at approximately $3.74 billion.

The largest build-outs are planned for Valcartier, QC (1,000+ units), Petawawa, ON (1,000+ units), Edmonton, AB (1,000+ units), Kingston, ON (900+ units), and Gagetown, NB (500+ units). CFHA is partnering with Build Canada Homes to leverage Modern Methods of Construction, including modular and prefabricated building systems.

CFHA CEO Paola Zurro called it "our largest construction campaign since the creation of the portfolio in the post Second World War era."

What It Means For You:

  • This is a multi-year, multi-site construction program across six regions. Contractors in residential construction, modular building, mechanical/electrical systems, and supporting services should be reviewing the advanced procurement notice immediately.

  • Mandatory Indigenous procurement targets and site-specific Indigenous Benefits Plans aim to exceed 5% of contracting value to Indigenous businesses. Indigenous-owned firms and joint ventures should be positioning now.

  • The emphasis on Modern Methods of Construction (modular, prefabricated, low-carbon materials) signals where DND wants the industry to go. Companies with modular building capabilities have a particular advantage.

  • Materials procurement will be significant: steel, lumber, concrete, and mechanical/electrical systems at scale across 25 sites. Canadian material suppliers should be mapping their capacity to these locations.

Our thoughts: This is LONG overdue. Anyone in the military will tell you how required this is, given the quality of housing provided at bases today. With that being said, I do love the ‘military’ spending hack to meet our NATO commitments of using it to build housing.

Location

Planned Units

Region

Valcartier, QC

1,000+

Quebec

Petawawa, ON

1,000+

Ontario

Edmonton, AB

1,000+

Alberta

Kingston, ON

900+

Ontario

Gagetown, NB

500+

New Brunswick

Ottawa, ON

280

Ontario

19 other CFHA locations

Remaining balance

National

Data Deep Dive: Who's Already Building at Phase 2 Housing Locations?

Defence Construction Canada Contract Analysis

The $3.74 billion Phase 2 military housing announcement is the headline, but the real question for contractors is: who's already on the ground at these bases, and what does existing DCC spending tell us about where the opportunities are?

We analyzed 1,091 Defence Construction Canada contracts totalling $831 million to map the competitive landscape at Phase 2 locations. Here's what we found.

The Big Picture

DCC awarded $831 million across 1,091 contracts in 2025-2023. Of those, 81 contracts worth $39.7 million were specifically tagged as CFHA or RHU work, covering everything from foundation digs to full residential unit recapitalizations. That existing spend tells you exactly which contractors have the relationships, security clearances, and base access already in place.

But here's the thing: the Phase 2 program at $3.74 billion is roughly 94 times larger than the current annual CFHA renovation and maintenance spend we're seeing in the data. DCC is going to need capacity that doesn't currently exist in its contractor pool, especially with the emphasis on modular and prefabricated construction methods. Incumbents have an advantage, but there's room at the table for new entrants.

Location-by-Location: Incumbents and Opportunities

Valcartier, QC (1,000+ units planned)

Current DCC activity: 70 contracts, $39.3 million

The Quebec base has a deep bench of regional contractors. Entreprises G.N.P. inc dominates the large-contract space with a single $21.7M award. For housing-specific work, the existing players are mid-sized Quebec firms: 9380-1645 Quebec inc (B2R) handles roofing ($1M), Levesque & Associes does foundation and waterproofing ($691K), and Germain Construction handles drainage work ($647K).

Key insight: Valcartier's existing contractor base is heavily Quebec-regional. With 1,000+ new units planned, this will be one of the largest single-site builds in the entire program. Expect DCC to need firms with apartment-scale construction experience well beyond what the current renovation-focused contractors typically deliver. Quebec-based modular builders should be paying very close attention.

Petawawa, ON (1,000+ units planned)

Current DCC activity: 88 contracts, $38.6 million Housing-specific: 28 contracts, $16 million

Petawawa already has the most active CFHA renovation pipeline of any base in the dataset. The contractors with the deepest housing-specific track record here are:

Contractor

CFHA/Housing Value

Work Type

Bird Design-Build Construction Inc.

$4.78M

Modified Design-Build RPCI

647514 Ontario Inc (Saffco)

$3.28M

RHU recapitalization, interior renovations

Ecowall Systems / A Class Contractors

$1.39M

Interior renovations

Narcity Construction Inc.

$1.47M

Housing renovations

Bird's presence here is notable. They hold a "Modified Design-Build" CFHA contract for the Ontario Region Residential Portfolio Capital Investment program, which is essentially the template for what Phase 2 will look like at larger scale. They also have the only modular accommodations contract in the entire dataset ($713K at Esquimalt). If any incumbent is positioned for Phase 2 new-build work, Bird is the one to watch.

Key insight: Petawawa is the base where DCC already has the most housing contractor relationships. Teaming opportunities here are real and immediate. The smaller firms (Saffco, Narcity, Ecowall) have proven CFHA track records but may need to partner with larger general contractors to handle apartment-scale new construction.

Edmonton, AB (1,000+ units planned)

Current DCC activity: 158 contracts, $76.2 million Housing-specific: 30 contracts, $22.7 million

Edmonton has the highest volume of DCC contracts in the dataset. EllisDon dominates the large-project space ($33.3M across 2 contracts). For housing work, the picture is more fragmented: Trainor Mechanical ($11.8M HVAC), Value Master Builders ($2.7M across 5 contracts), and 16351867 Canada Inc. ($600K CFHA kitchen standing offer).

Key insight: Edmonton's contractor pool skews toward large nationals (EllisDon, PCL at $22.9M) and specialized mechanical/electrical firms rather than housing-focused builders. With Alberta's broader $28.3 billion capital plan also driving construction demand, labour availability will be the biggest constraint here. Firms that can bring their own workforce rather than competing for local trades will have an advantage.

Kingston, ON (900+ units planned)

Current DCC activity: 20 contracts, $17.1 million Housing-specific: $6.8M (DC&F Corp's CFHA 6-plex) + $2.1M (ETKA Construction RHU recapitalization)

Kingston's CFHA housing work is concentrated in two contractors. DC&F Corp holds the single largest housing contract in the entire DCC dataset: a $6.8 million CFHA apartment building 6-plex. This is significant because it's the closest thing to new-build multi-unit residential work in the current portfolio, making DC&F potentially the most directly relevant incumbent for Phase 2.

Key insight: Kingston's existing housing contractor base is thin but experienced in exactly the right kind of work. The JV between Fidelity E&C and Mark Colborne ($5.1M) also shows that joint ventures are already an established procurement model at this base.

Gagetown, NB (500+ units planned)

Current DCC activity: 82 contracts, $22.3 million Housing-specific: 21 contracts, $5.5 million

Gagetown has a broad base of smaller contractors doing housing work. Pomerleau has an $855K CFHA Residential Portfolio Capital Investment contract here and a much larger $5M contract at Greenwood, making them one of the few national firms with multi-base CFHA experience. Wilson Builders ($1.3M across 2 housing contracts) and Heron Enterprises ($898K interior retrofit) are the key regional players.

Key insight: New Brunswick's construction market is smaller, which means the 500+ unit build will be a proportionally huge event for the local contractor community. Firms from outside the region partnering with established Gagetown-area contractors like Wilson Builders or Simpson Building Contractors would be a smart play.

Ottawa/Uplands (280 units planned)

Current DCC activity: 19 contracts, $69 million

Ottawa's DCC picture is dominated by a single player: Black & McDonald Limited, with $67.3 million across 3 contracts. They're the largest DCC contractor nationally ($82.4M total). However, their Ottawa work appears to be primarily facility management and maintenance rather than housing construction.

Key insight: Ottawa/Uplands has the least housing-specific construction activity of any Phase 2 location in the dataset. The 280 units announced (160 at Uplands) will essentially be a greenfield opportunity for housing contractors. The proximity to Ottawa's robust construction market means competition should be strong.

National Players to Watch

These contractors have the multi-location DCC experience and scale that Phase 2 will demand:

Contractor

Total DCC Value

Locations

Housing Experience

Pomerleau Inc.

$72M

5 bases

$3.1M CFHA work (Esquimalt, Gagetown)

Bird Design-Build Construction Inc.

$12.8M

5 bases

$4.8M housing + modular experience

TMR Restoration & Construction inc

$4.7M

3 bases

$4.4M CFHA recaps (Borden, Kingston, Trenton)

ETKA Construction Inc.

$3.2M

3 bases

$2.5M RHU work (Kingston, Petawawa)

Strong Bros General Contracting

$60.4M

3 bases

JV with SP Indigenous Services on RHU work

Pomerleau stands out as the only firm with both large-scale DCC construction capability ($72M) and direct CFHA housing experience across multiple bases. Bird brings the design-build and modular experience that aligns with DCC's stated Modern Methods of Construction preference.

The Indigenous Procurement Signal

The Phase 2 announcement includes mandatory Indigenous procurement targets aiming to exceed 5% of the program's contracting value. At $3.74 billion, that's roughly $187 million minimum directed to Indigenous businesses.

The DCC data shows Indigenous participation is still emerging. We found JV contracts with SP Indigenous Services (partnered with Strong Bros on RHU work in Ontario), plus a few smaller JVs. The gap between the 5%+ target and current participation levels means there will be significant demand for Indigenous-owned construction firms and meaningful JV partnerships.

What the Data Doesn't Show (But Matters)

A few important caveats:

This dataset captures DCC contracts, not all military housing procurement. CFHA also uses PSPC procurement vehicles, standing offers, and other mechanisms that won't appear here. The full incumbent picture is broader than what we can see.

Phase 2 is fundamentally different work. The existing contracts are predominantly renovations, recapitalizations, and maintenance. Phase 2 is new-build apartment construction at scale. The skills overlap but aren't identical. Companies that build multi-unit residential housing for civilian developers may be better positioned than some existing DCC renovation contractors, even without base experience.

The modular/prefab signal is strong but the market is thin. We found exactly one modular accommodations contract in the entire dataset (Bird, $713K, Esquimalt). DCC's partnership with Build Canada Homes and the emphasis on Modern Methods of Construction suggests they know the current contractor pool isn't deep enough in this area. If you're a modular builder, this is your signal.

Ontario Science Centre: $1.04 Billion Contract Awarded

Source: Infrastructure Ontario | Date: 2026-02-26

What's Happening: Infrastructure Ontario and the Ministry of Tourism, Culture and Gaming awarded a $1.04 billion fixed-price contract to Ontario Science Partners to design, build, finance, and maintain a new Ontario Science Centre at Ontario Place. The contract includes a 30-year maintenance term.

The team includes John Laing Limited, Sacyr Infrastructure Canada Inc., and Amico Major Projects Inc. as applicant leads, with Hariri Pontarini Architects and Snøhetta on design, and Johnson Controls Canada handling facilities management. Construction is expected to start this spring.

The procurement process began in May 2024 and was overseen by a third-party fairness advisor. The contract cost is notably higher than Infrastructure Ontario's original 2023 business case estimate of $628 million for the relocation, including 50 years of maintenance.

What It Means For You:

  • This is a Design-Build-Finance-Maintain (DBFM) contract, IO's preferred model for major public infrastructure. Subcontracting opportunities will flow through the Ontario Science Partners consortium, so firms with specialized capabilities (exhibit fabrication, AV systems, sustainability certification, heritage preservation for the Cinesphere) should be reaching out to the prime team now.

  • The DBFM model means 30 years of ongoing facilities management work. Firms in building operations, maintenance technology, and energy management have a long-tail opportunity here.

  • The 60% cost increase from the original business case to the awarded contract is a data point worth noting for anyone bidding on public infrastructure in Ontario. Cost escalation on major projects continues to be significant.

Our thoughts: This better be an epic science centre. $1B is nuts when Ontario runs budget deficits and has growing emergency room wait times. However, what I cannot deny is that it will be an incredible Ontario landmark if it gets completed (on time). The Ford Family Science Centre has a nice ring to it. I don’t know if you have had a chance to ride the Eglinton LRT yet, but it is beautiful (and empty). Hopefully this is a bit quicker.

Your Procurement Action Plan

1. Respond to the Military Housing APN Now. Defence Construction Canada's advanced procurement notice for the $3.74 billion Phase 2 housing program is live. Our data analysis shows the current CFHA contractor pool handles roughly $40M/year in housing work. Phase 2 is 94 times that. DCC needs new entrants, especially firms with multi-unit residential and modular construction experience. If you build apartments or prefab housing, this is your invitation.

2. Get Your Canadian Content Documentation Ready for June. The Buy Canadian policy expands to procurements over $5 million on June 15. Every major contract covered in this edition (military housing, Ontario Science Centre) will be evaluated with Canadian content criteria. Document your ownership structure, manufacturing locations, workforce, and supply chain now. Not later. Now.

3. Reach Out to the Ontario Science Centre Prime Team. The $1.04 billion DBFM contract was just awarded to Ontario Science Partners, and subcontracting decisions are being made in the coming weeks as the team mobilizes for spring construction. If you have specialized capabilities in exhibit fabrication, AV/interactive systems, heritage preservation, sustainability certification, or building operations, the window to get in front of Sacyr, Amico, and Johnson Controls is right now.

The common thread this week is scale. These aren't incremental budget increases or pilot programs. The federal government is building 7,500 military homes across 25 bases. Ontario just committed a billion dollars to a single science centre. The contractors who win this work will be the ones who can prove they're Canadian, prove they can deliver at volume, and prove they can start soon. The advanced procurement notices are already posted. The only question is whether you're positioning for it.

Publicus helps government contractors find, qualify, and win more contracts with less effort. Our AI-powered platform monitors every opportunity across all government levels, so you never miss a relevant RFP again. We have data on every contract awarded so you know your competition, incumbents, pricing, and can position yourself before the RFP hits the street.

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