Creative Geography 101: How California Became 'Local' to Saskatchewan

Procurement just got messier. Saskatchewan's caught red-handed calling California companies "local," while Ottawa fast-tracks nation-building projects and tightens bid challenge rules. The tension between political posturing and actual trade policy is reaching a breaking point, and contractors need to navigate an increasingly politicized landscape where "local" means whatever politicians want it to mean.

When "Local" Becomes a Political Fiction

Saskatchewan's Creative Geography Problem Source: CBC News | Date: June 27, 2025

What's Happening: Saskatchewan's NDP opposition just exposed the province's creative approach to defining "local" suppliers. Documents obtained through Freedom of Information show that while the government claims 90% of procurement goes to "Saskatchewan-based" companies, only 51% of contracts actually went to companies headquartered in Saskatchewan. The province has been categorizing businesses like Crumb Rubber Manufacturing (Newport Beach, California) and Mitsubishi of Canada (Ontario) as "Saskatchewan-based."

Had anyone just asked the team at Publicus, they would not have even needed a FOIA request!

What It Means For You: 

• Definition games are spreading: Provinces are stretching "local" definitions to meet political promises while following federal trade agreement criteria 

• Documentation matters more: Contractors need multiple corporate structures and local presence documentation to qualify across different provincial interpretations 

• Political risk increases: Opposition parties are using FOI requests to expose procurement practices, creating reputational risks for both governments and contractors

Between Us: This is procurement politics at its finest. Saskatchewan wants credit for supporting local business while still accessing the suppliers they actually need. The problem is that calling a California company "local" because they have a P.O. box in Regina makes the whole "buy local" movement look like theater rather than policy.

Major Projects Push Forward Despite Politics

Irving Shipbuilding Delivers on National Strategy Source: Public Services and Procurement Canada | Date: June 26, 2025

What's Happening: The National Shipbuilding Strategy is actually working. Irving Shipbuilding is completing the sixth and final Arctic and Offshore Patrol Ship (HMCS Robert Hampton Gray) this summer while beginning full-rate production of River-class Destroyers. Over 15 years, NSS contracts have contributed $38.7 billion to GDP and created 21,400 jobs annually.

What It Means For You:

• Long-term stability works: Multi-year naval contracts demonstrate the value of sustained procurement strategies over political cycles 

• Supply chain integration pays off: Subcontractors and suppliers benefit from stable production pipelines when governments commit to strategic industries. Subcontractors should use award notice data to identify opportunities.

• Performance standards matter: Stringent quality and schedule requirements mean only proven performers survive in mega-project environments

Calgary's $6.2B Green Line Breaks Ground Source: ReNew Canada | Date: June 27, 2025

What's Happening: After a decade of planning, Calgary broke ground on the Green Line LRT, the city's largest-ever infrastructure procurement at $6.248 billion. Phase 1 will construct 17.2 km of dual-track rail with 12 stations, funded collaboratively by municipal, provincial, and federal governments.

What It Means For You: 

• Multi-level complexity: Projects spanning three government levels require navigation of layered governance structures and compliance requirements 

• Consortium opportunities: Mega-projects of this scale demand partnerships between construction firms, vehicle manufacturers, and systems integrators 

• Calgary Goldrush: There will be a TON of transport related opportunities dropping in Alberta over the next 6-12 months. Vendors who want to win contracts there should start building relationships immediately.

Federal Policy Shifts: Speed vs. Scrutiny

Bill C-5 Fast-Tracks "Nation-Building" Projects Source: Global News | Date: June 26, 2025

What's Happening: The Canadian Sustainable Economy Act (Bill C-5) received royal assent, granting federal government powers to fast-track approvals for major "nation-building" projects. The goal is cutting red tape so designated projects secure all federal approvals in under two years. The law also eliminates the last federal internal trade barriers by Canada Day 2025.

What It Means For You: 

• Accelerated timelines: Major federal projects will move faster from RFP to execution, requiring contractors to scale resources more quickly 

• Unified market access: Removal of interprovincial barriers means easier expansion but increased national competition •

• Due diligence still critical: Despite fast-tracking, Indigenous engagement and environmental mitigation remain essential for project legitimacy

Bid Challenge Rules Tighten Against Non-Allies Source: Cassidy Levy Kent | Date: June 27, 2025

What's Happening: New federal regulations restrict bid challenges to Canadian suppliers or those from trade agreement countries (US, EU, Mexico). Companies from non-trade partners (China, India, Brazil) are explicitly barred from the federal bid challenge system. Compensation caps are now formalized: maximum 10% of bid price for lost profits, 2% for bid preparation costs.

What It Means For You: 

• Selective market access: Non-FTA country suppliers face higher barriers to contesting procurement decisions, potentially discouraging their participation 

• Litigation certainty: Fixed compensation caps provide predictability for both governments and contractors in dispute scenarios 

• Partnership strategies: Affected international companies may establish Canadian subsidiaries or partnerships to maintain eligibility

This is another signal of the new world order developing in the Trump era. Free trade only applies to those who agree to play by our rules.

The Growing Tension: Politics vs. Trade Policy

The Saskatchewan scandal reveals a fundamental tension in Canadian procurement. While Ottawa pushes interprovincial trade barrier removal, provinces increasingly use procurement for political positioning. The result is creative definitions of "local" that satisfy political promises while circumventing actual trade restrictions.

The contractor's dilemma: You need local presence to win political points, but actual operational capability to deliver projects. Companies are responding by establishing multiple corporate structures and regional partnerships to qualify under various provincial interpretations of "local."

The bigger picture: Bill C-5's interprovincial barrier removal conflicts with provincial politicians' need to claim support for local business. Expect more creative geography as provinces balance trade obligations with political promises.

Strategic Implications for Contractors

Documentation strategy becomes critical: With provinces playing definition games, contractors need comprehensive local presence documentation. P.O. boxes won't cut it when opposition parties start digging through FOI requests.

Regional partnership evaluation: Saskatchewan's approach suggests provinces will stretch definitions to meet political needs while technically complying with trade agreements. Strategic partnerships in key provinces become more valuable for accessing these "local" designations.

Federal vs. provincial divergence: Federal fast-tracking and barrier removal creates opportunities for national expansion, while provincial politicization creates local access requirements. Successful contractors will need strategies for both levels.

The Bottom Line

Procurement is becoming increasingly politicized, with provinces using creative definitions to claim local support while accessing the suppliers they actually need. Saskatchewan's "California companies are local" approach won't be the last example of political theater trumping procurement reality.

For contractors, this means more complexity in qualification strategies and higher political risk as opposition parties scrutinize procurement practices. The winners will be companies that can navigate both the technical requirements and the political optics of an increasingly polarized procurement environment.

The irony is that while Ottawa removes trade barriers to create a national market, provincial politics is creating new barriers through creative interpretations of what "local" actually means.

Publicus helps government contractors find, qualify, and win more contracts with less effort. Our AI-powered platform monitors every opportunity across all government levels—and helps you understand what "local" actually means in each jurisdiction.