Canadian Procurement Pulse: Your Weekly Contractor Insider

While everyone's focused on Ottawa's new "Buy Canadian" consultation (covering $66.9 billion annually), we decided to follow the money on something more interesting: every Solutions-Based Informatics Professional Services (SBIPS) contract ever awarded. All 11 of them. $98 million total. Turns out a $2 million contract can become $37 million, enterprise systems integration is the only game in town, and the Big 4 consulting firms captured 96% of the spending. Also this week: Nova Scotia keeps sole-sourcing its way to faster delivery, and Toronto proved that sewers are sexier than subsidies when it comes to actually building housing.

Here's your essential briefing:

Spotlight: SBIPS in Practice—What "Solutions-Based" Actually Means

Source: ATIP, Publicus Analysis | Date: October 26th 2025

Solutions-Based Informatics Professional Services (SBIPS) has existed for years as PSPC's vehicle for outcome-focused IT procurement. Unlike task-based contracts where government defines specific work, SBIPS contracts ask: "What problem are we trying to solve?" and let suppliers propose the solution.

In theory, brilliant. In practice? Until recently, hardly anyone used it.

That's changing. We pulled every SBIPS contract awarded to date—all 11 of them, totaling $98 million—to see what "solutions-based procurement" actually looks like when government writes the checks.

The Numbers:

Top Procuring Departments:

• PSPC: 5 contracts, $17.3M (most contracts, but not highest value)

• DFO: 1 contract, $37.4M (single largest contract—Financial System Renewal)

• CFIA: 1 contract, $22.3M (Systems Integration)

• CBSA: 1 contract, $10.9M (Systems Integrator)

• NSERC: 1 contract, $9.2M (Tri-Agency Grants Management System)

• DND: 2 contracts, $0.69M (IT support services)

Top Vendors by Total Value:

• IBM Canada: $42.3M (43% of all SBIPS spending across 2 contracts)

• Accenture: $22.3M (single mega-contract)

• Deloitte: $20.1M (CBSA and NSERC contracts)

• KPMG: $12.1M original contract value, but only $922K total value shown (92% reduction)

• PwC: $7.5M

• Cistel: $4.0M

The Big 4 consulting firms plus Accenture captured approximately 96% of total SBIPS contract value. Only two contracts went outside this group: DND's small IT support contracts under $700K total (Leo-Pisces and CGI).

Award Timeline:

• 2015: $33.2M (SBIPS framework launch—Deloitte Systems Integrator, Accenture CFIA integration)

• 2017: $0.7M (DND IT Support)

• 2019: $53.6M (peak year—IBM Financial System Renewal $37.4M, KPMG Security Systems $12.1M, Cistel $4M)

• 2020: $2.4M (PwC Procurement Modernization)

• 2024: $9.2M (Deloitte Tri-Agency Grants Management)

• 2025 (to date): $10M (IBM & PwC CCRM Transformation Initiative)

Federal IT modernization spending follows a clear pattern: large consolidation years (2015, 2019) followed by multi-year transformation phases (2024-2025).

Contract Duration: Most SBIPS contracts run 2-4 years, suggesting phased implementation approaches rather than "big bang" deployments. Small support contracts average 1.3 years, while large transformations stretch 2.5-4 years.

What We're Actually Seeing:

"Solutions-Based" Means Enterprise Systems Integration

Every major SBIPS contract involves massive, enterprise-wide system transformation:

• Financial system renewals (DFO: $37.4M—largest single contract)

• Tri-agency grants management (NSERC: $9.2M)

• Industrial security systems transformation (PSPC: originally $12.1M, reduced to $922K)

• Procurement modernization (PSPC: $2.4M)

• Systems integration across agencies (CFIA: $22.3M, CBSA: $10.9M)

These aren't "here's an open-ended problem, propose an innovative solution" contracts. They're "we need to replace this massive legacy system, how would you approach implementation?" projects. The outcome is known (new financial system, new grants management platform), but the implementation approach is flexible.

With two exceptions (DND's sub-$700K IT support contracts), every SBIPS contract went to major consulting firms. The average contract value excluding the two DND outliers? Over $10M.

PSPC Manages the Most, But Not the Largest

PSPC awarded 5 SBIPS contracts totaling $17.3M, giving them the most diverse portfolio. But DFO holds the single largest contract at $37.4M for financial system renewal, and CFIA's systems integration comes in second at $22.3M.

PSPC's role is clearly as the central contracting authority for cross-government transformation initiatives, while large departments like DFO and CFIA use SBIPS for their own enterprise-scale modernizations.

PSPC Tests On Itself First

PSPC isn't just managing SBIPS as a procurement vehicle for other departments, they're using it themselves for internal transformation:

• Procurement Modernization Initiative ($2.4M, PwC, 2020)

• Industrial Security Systems Transformation ($12M, KPMG, 2019)

• CCRM Transformation Initiative Support ($10M combined, IBM + PwC, 2025)

• General SBIPS implementation support ($4M, Cistel, 2019)

They're eating their own dog food, testing solutions-based approaches on their own systems before scaling across government. This is smart policy implementation. Prove it works internally before mandating it externally.

Only The Biggest Firms Need Apply

With three exceptions totalling under $5M, every SBIPS contract went to Big 4 consulting firms with demonstrated enterprise integration capabilities.

If you're a small or medium IT services firm, SBIPS isn't your entry point to federal work. It's where you go after you've proven capacity on $10M+ transformation projects. The barrier isn't explicit, it's structural: only firms with track records on similar enterprise-scale work can credibly bid on these contracts.

This creates a self-reinforcing cycle: SBIPS contracts require proven capacity on large transformations, but you can't build that capacity without winning large transformation contracts.

The Ombud Connection:

Remember the Ombud's recommendation that PSPC shift away from evaluating individual resource qualifications toward assessing corporate capacity and past performance? SBIPS is the working model.

These contracts evaluate suppliers on:

• Past performance on similar enterprise transformations

• Corporate methodology and delivery approach

• Ability to deliver outcomes, not specific individuals' resumes

• Proven capacity on projects of similar scope, scale, and complexity

This is exactly what the revised Master Level User Arrangements (MLUAs) now require for large task-authorization contracts with multiple resources.

The challenge? Only firms with track records on $10M+ projects can demonstrate this capacity.

The Ombud's concern about corporate capacity requirements blocking SME access? SBIPS is Exhibit A. It works brilliantly for proven enterprise integrators. It's structurally inaccessible to smaller firms trying to break in. That may be a good thing in terms of avoiding another GC Strategies situation. However, there are many great firms left out of what should be a competitive process.

The Bottom Line:

After years of minimal adoption, SBIPS usage is increasing, but primarily for massive system transformations awarded to firms with existing track records. "Solutions-based" sounds innovative. In practice, it's enterprise systems integration where the destination is known but the implementation path is flexible.

Not a bad thing, government genuinely needs proven capacity for $10M+ transformations. However, it is not a procurement revolution.

Watch for more activity in 2026-2027 as the modernization cycle continues. And watch whether PSPC develops mechanisms to make solutions-based approaches accessible to smaller firms, or whether this remains the exclusive domain of enterprise integrators. Requirements for subcontracting portions of the work? Collaboration between multiple prime contractors? Who knows.

Federal Policy Shifts

Ottawa Launches "Buy Canadian" Consultation

Source: Canada.ca | Date: October 20, 2025

What's Happening: Minister Joël Lightbound just launched consultations on a new Buy Canadian Policy framework covering $66.9 billion in federal contracts awarded in fiscal 2024-2025 ($55.6 billion managed by PSPC alone). Initial focus: steel and softwood lumber in defence and construction, with potential expansion to other sectors. 

What It Means For You:

• Supply chain audits are now mandatory prep work: If you can't demonstrate Canadian content in your supply chain, you won't qualify for future solicitations. Start documenting your sourcing now, percentages matter.

• Steel and lumber first, everything else later: Defence contractors and construction firms should prioritize Canadian steel and softwood lumber suppliers immediately. This isn't optional positioning, it's table stakes for the next RFP cycle.

• Trade agreement compliance gets complicated: The policy must work within existing trade obligations (CUSMA, CETA, CPTPP). Expect nuanced local content thresholds that vary by sector and contract value.

Our Take: This is the formal policy framework for what we've been tracking all year. Provincial "buy local" initiatives, municipal tariff workarounds, and federal procurement nationalism. The consultation period means implementation is months away, but smart contractors are already repositioning their supply chains.

The Minister and this government have demonstrated a consistent effort to reform procurement in a way we have not seen in decades - kudos. The political side does not deserve all the credit though, the civil servants, the Ombud, and the ArriveCan scandal all pushed the system to change.

N.S. Awards $2.2M Untendered Contract for Home-Care Review

Source: CBC News | Date: October 20, 2025

What's Happening: Nova Scotia's Seniors and Long-Term Care Department awarded a two-year, $2.18 million untendered contract to Halifax-based Davis Pier Consulting to examine home-care service delivery improvements. Minister Barbara Adams justified skipping competitive procurement because Davis Pier is "already very familiar" with the province's system and the government wanted to "act quickly."

What It Means For You:

• Nova Scotia continues sole-source procurement at scale: This isn't a one-off. Nova Scotia has established a pattern of awarding untendered contracts to firms with existing relationships (remember Google's $50M contract?).

• "Unique solution" is your ticket: If you can demonstrate specialized knowledge of a government system, prior working relationships, or truly differentiated capabilities, Nova Scotia will consider sole-source awards. Document your unique qualifications aggressively.

• Speed trumps competition: Minister Adams explicitly cited speed as justification for bypassing tender. In Nova Scotia, demonstrating you can deliver faster than a competitive process allows may be more valuable than a lower price.

The Davis Pier Scope:

• Apply technology and data collection approaches (similar to long-term care improvements) to home care

• Address scheduling issues and cancelled visits

• Reduce administrative burden on care providers

• Improve communication and coordination (nurses report being sent to Shubenacadie, returning to Truro, then being sent back to Shubenacadie hours later—30 minutes each way)

Our Take: Nova Scotia continues to be the home of "get it done" procurement, or favouritism, depending on your perspective. The province consistently prioritizes speed and existing relationships over competitive processes.

If you're a local Nova Scotia firm with specialized expertise in a government challenge, your path to contracts doesn't run through competitive RFPs, it runs through building relationships with ministries and documenting your unique capabilities.

Defence & Infrastructure Spending

Defence Construction Canada: $14.3M in Recent Awards

Source: Defence Construction Canada | Date: October 20-22, 2025

What's Happening: DCC awarded 14 contracts totaling $14.29 million over three days, with Nova Scotia contractors capturing 64% ($9.17 million) of total value. Largest award: $5.45 million to EastPoint Engineering Limited for diesel electrical generator replacement at multiple Naval Warfare Systems locations.

Key Contracts:

What It Means For You:

• Atlantic Canada dominates defence infrastructure: Nova Scotia contractors captured nearly two-thirds of contract value, signaling regional specialization in military construction and engineering services. If you're not established in Atlantic Canada, partnering with regional firms may be your best entry point.

• Critical infrastructure modernization continues: Multi-million dollar generator replacements indicate sustained investment in defence energy infrastructure. Electrical engineering firms with defence experience should be positioned for upcoming similar projects.

• Indigenous procurement opportunity identified: Contract CL210022 awarded to an Indigenous business joint venture. DCC is actively using Indigenous set-asides. If you're an Indigenous firm with construction or engineering capabilities, target DCC opportunities.

Our Take: The average contract value of $1.02 million suggests these are substantial but not massive projects—ideal for regional contractors with specialized capabilities. The concentration of roofing, facility upgrades, and housing maintenance reflects ongoing infrastructure upkeep rather than major new construction.

This week shows Canadian procurement actually working, just not always the way the policy documents describe it.

Ottawa's launching Buy Canadian consultations while Nova Scotia awards sole-source contracts based on existing relationships and proven expertise. PSPC is scaling SBIPS for enterprise transformations while simultaneously trying to figure out how to make corporate capacity requirements accessible to smaller firms. Toronto's funding sewers because infrastructure bottlenecks are blocking 63,000 homes.

The contradiction isn't dysfunction. It's pragmatism. Federal policy sets direction. Provinces and municipalities implement based on what actually works locally.

Perfect? No.

But imperfect and functional beats theoretically optimal but paralyzed every time.

The winners this week are contractors who recognize that one strategy won't work everywhere: Buy Canadian positioning for federal RFPs, relationship-building for Nova Scotia sole-source opportunities, and enterprise integration credentials for SBIPS modernization projects.

Publicus helps government contractors find, qualify, and win more contracts with less effort. Our AI-powered platform monitors every opportunity across all government levels, with analytics on pricing and competition so you can understand your market like never before,.