GOVCON WEEKLY

Canadian Procurement Pulse: Your Weekly Contractor Insider

January 13-17, 2026

After months of "Buy Canadian" speeches and press conferences, we finally have proof the policy isn't just a bumper sticker. A $2.3 billion transit contract just set the template for what domestic procurement actually looks like in practice. Meanwhile, Treasury Board quietly adjusted contracting thresholds (because nothing says "Happy New Year" like updated CFTA limits), and environmental consultants are about to have a very good 2026. Here's your essential briefing:

Arctic Infrastructure Fund Creates Northern Opportunities

$1 Billion Allocated for Dual-Use Infrastructure 

Source: Global News | Date: January 4, 2026

What's Happening: Prime Minister Carney's inaugural budget included a $1 billion, four-year fund for "dual-use" infrastructure projects serving both civilian and military purposes in the North. Priority areas include airports, seaports, and all-season roads.

What It Means For You:

• Contractors with Arctic experience should be monitoring upcoming opportunities from the Department of National Defence and Infrastructure Canada

• "Dual-use" designation means projects must meet both civilian infrastructure standards and military operational requirements

• Northern construction involves specific environmental, logistical, and sovereignty compliance considerations that will narrow the competitive field

Our Take: Arctic procurement has traditionally been challenging due to the complexity of northern operations and the limited number of contractors with relevant experience. This fund creates meaningful opportunities, but success will require demonstrated capability in remote and harsh environment construction. If you're considering entering this space, partnership with established northern operators would be a sensible first step.

Data to Start Your Week: Northwest Territories Procurement

With $1 billion in Arctic infrastructure funding on the horizon, it's worth understanding what northern procurement actually looks like. We pulled the numbers on NWT contract awards from FY 2020-2026.

The Big Picture

That 272% spike in FY24-25? A single $425 million medevac contract awarded to Air Tindi. One contract. Nearly half a billion dollars. Welcome to northern procurement, where the deals are big and the vendor pool is small.

Who's Buying What

Infrastructure is the biggest buyer but balanced across all types. NWT Health and Social Services Authority is almost entirely services (medevac, counselling, social programs). NWT Housing Corporation is the construction powerhouse at 87%. And Finance? That's 82% services, mainly liquor distribution contracts.

It's Not All Construction

Despite what you might assume about building in the North, services account for nearly 80% of NWT procurement value. The breakdown for FY24-25:

A Concentrated Market

Around 370 vendors compete for approximately 700 contracts per year. The top 10 vendors capture a significant share of total value, and relationships matter. Rowe's Construction has won 65 contracts worth $103 million from Infrastructure alone. That's the kind of incumbent advantage that's hard to overcome without a local presence or established partnership.

The Competition Gap

Here's something interesting: construction contracts see a 16.4% bidder conversion rate compared to 29.3% for services. Fewer firms are bidding on construction opportunities, which means less competition per contract. For contractors considering northern expansion, the construction side may offer better odds.

What This Means for You

If Carney's Arctic fund flows through territorial governments (which is likely for civilian-use infrastructure), expect procurement patterns similar to what we see here: large contracts, concentrated vendor relationships, and a premium on firms with demonstrated northern experience.

The barriers to entry are real, but so is the opportunity. Firms looking to position for Arctic work should be studying these existing relationships and considering partnership strategies with established northern operators like Rowe's, Air Tindi, or Great Slave Helicopters.

TTC Awards $2.3 Billion Subway Contract to Alstom 

Source: Railway News | Date: January 2026

What's Happening: The Toronto Transit Commission has awarded a $2.3 billion contract to Alstom for 70 six-car Metropolis subway trains, with options for another 150 trains. This represents the first major procurement under the federal government's new Buy Canadian Policy, and both Ottawa and Ontario are backing it with nearly $1.9 billion in combined contributions.

The trains will be designed and engineered in Canada, with final assembly at Alstom's Thunder Bay facility and testing at its Kingston site. TTC confirmed that 55% of content will be sourced from Canadian suppliers.

What It Means For You:

• This contract sets the template for how Buy Canadian will actually work in practice: clear Canadian content percentages, domestic manufacturing requirements, and provincial/federal cost-sharing

• Transit and rail equipment suppliers should be positioning now for subcontractor opportunities; this contract alone is expected to create 945 direct jobs and over 1,700 indirect jobs

• The 55% Canadian content threshold gives us a benchmark for what governments consider acceptable under the new policy

Between Us: After months of rhetoric about Buy Canadian, we finally have a concrete example of the policy in action. The structure here is instructive: substantial government funding tied to domestic content requirements, manufacturing jobs in specific communities (Thunder Bay and Kingston), and a Canadian prime contractor with established facilities. Expect this model to be replicated across major infrastructure procurements.

Federal Contracting Thresholds Updated for 2026

Treasury Board Adjusts Procurement Limits 

Source: Treasury Board Secretariat / CFTA | Date: January 15, 2026

What's Happening: Effective December 15, 2025, Treasury Board amended its Directive on the Management of Procurement to raise federal contracting approval limits in line with inflation. More importantly for contractors, the Canadian Free Trade Agreement thresholds have been updated for 2026-2027.

The new limits for open competition requirements:

What It Means For You:

• The sole-source threshold for federal services is now approximately $139,000, up from previous levels due to inflation adjustments

• Municipal and broader public sector goods/services threshold sits at $139,000 before trade rules require open tenders

• Crown corporations have significantly higher thresholds before open competition kicks in, creating opportunities for direct engagement

Our Take: These threshold adjustments happen every two years, but contractors should update their pursuit strategies accordingly. Contracts just under these limits can be awarded through simplified processes with less competition. If you've been hesitant to pursue smaller opportunities, the math has shifted slightly in your favor.

Public Service Reductions Will Impact Procurement Capacity

16,000 Federal Positions to be Cut Over Three Years 

Source: CBC News | Date: January 16, 2026

What's Happening: The federal government is moving forward with plans to reduce the public service by 16,000 full-time equivalent positions between April 2026 and 2029, bringing total headcount to 333,000. Public Services and Procurement Canada has already issued 730 workforce adjustment notices, while Statistics Canada has issued over 850, including 12% of its executive positions.

What It Means For You:

• Reduced operational capacity in procurement departments likely means longer timelines from RFP to award

• Remaining procurement staff will face heavier workloads, so clear and compliant proposals become even more important

• Outsourcing of certain functions may increase as departments try to maintain service levels with fewer staff

Between Us: The practical impact here is straightforward: expect procurement processes to slow down. PSPC, the department that handles a significant portion of federal procurement, is among those issuing notices. Plan for delays in evaluation periods and be patient with contracting officers who are managing larger portfolios with fewer colleagues.

Climate Adaptation Planning Creates Municipal Opportunities

$7.1 Million for 80 Municipal Adaptation Plans 

Source: WaterCanada.net | Date: January 15, 2026

What's Happening: Environment and Climate Change Canada, in partnership with the Federation of Canadian Municipalities, is funding 80 climate adaptation plans across the country. The funding focuses on climate-focused asset management and adaptation planning at the municipal level.

What It Means For You:

• Environmental consultants should be actively pursuing these opportunities; municipalities across the country will be issuing RFPs for adaptation planning services throughout 2026 and 2027 - really any consultants should prepare for a deluge of this type of opportunity.

• Three examples already live: City of Grande Prairie, City of St. Albert, and City of Fredericton all have active RFPs for climate adaptation work

• This is the first wave of a larger trend as federal funding flows to municipalities for climate resilience

Our Take: If you're in the environmental consulting space, this is your signal to start positioning. With 80 municipalities receiving funding, there's a substantial pipeline of opportunities ahead. The firms that move now to establish relationships with municipal planning departments will be well-positioned when the RFPs start flowing in volume later this year.

Your Procurement Action Plan

Track Buy Canadian Benchmarks: The TTC/Alstom contract establishes 55% Canadian content as an acceptable threshold under the new policy. Use this as a reference point when preparing proposals for major infrastructure work.

Update Your Threshold Strategy: With adjusted CFTA limits now in effect, review your opportunity pipeline. Contracts just under $139,000 for services or $34,700 for goods at the face less competition through simplified procurement processes.

Build In Timeline Buffers: Public service reductions at PSPC and across government mean procurement timelines will likely extend. Factor additional time into your project planning and don't count on quick turnarounds.

Environmental Consultants, Move Now: The climate adaptation funding is creating immediate opportunities. The municipalities with live RFPs represent early movers, but 77 more plans need to be developed. Start your outreach to municipal planning and sustainability offices this month.

Position for Northern Work: The $1 billion Arctic fund will generate significant opportunities over four years, but competition will be limited to contractors with demonstrated northern capability. If this is a market you want to enter, begin exploring partnerships with established northern operators.

The Bottom Line

Buy Canadian has officially moved from campaign promise to contract reality. The TTC deal shows us what the model looks like: federal-provincial cost sharing, specific Canadian content requirements, and manufacturing tied to Canadian facilities. Contractors who can document their domestic credentials and position for subcontracting opportunities will benefit most.

At the same time, the machinery of government is shrinking. Fewer procurement officers managing the same volume of contracts means patience becomes a competitive advantage. Get your proposals right the first time.

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.