Canadian Procurement Pulse: Your Weekly Contractor Insider

September 28 - October 05, 2025

I have to be honest, it's a bit of a slow news week, outside of the CRITICAL changes with the new Defence Investment Agency. We provide analysis of some big contract awards in construction and new procurement models being adopted. Sadly, I'm not sure any of them would have prevented the Eglinton Crosstown catastrophe in Toronto.

But here's what matters: Ottawa is finally putting money where its mouth is on procurement reform. Between the Defence Investment Agency, "Buy Canadian" policies gaining real teeth, and mega-projects experimenting with collaborative delivery models, the procurement landscape is shifting faster than it has in decades. If you're still operating like it's 2023, you're already behind.

Defence Investment Agency Launches: Ottawa's $100M+ Procurement Fast-Track

Source: Global News and GoC Backgrounder | Date: October 2, 2025

What's Happening: Ottawa launched the Defence Investment Agency to centralize defence procurement and accelerate equipment purchases for the Canadian Armed Forces. The agency will handle all purchases above $100 million and has authority to enter contracts without complex Treasury Board approvals. Doug Guzman, former RBC executive and Goldman Sachs manager, will serve as CEO, with Secretary of State Stephen Fuhr providing political oversight.

What It Means For You:

• Centralized procurement above $100M: One-stop shopping replaces fragmented oversight across multiple departments—no more navigating DND, PSPC, and Innovation separately

• Risk-based contracting authorized: Agency can use pandemic-era rapid contracting approaches without repeated Treasury Board sign-offs

• "Speed of relevance" mandate: Fuhr explicitly stated willingness to "take a bit of risk" to avoid delivering obsolete technology (the CC-295 search-and-rescue saga took a decade from contract to operational service)

• Integrated Procurement Teams: The Agency will draw staff from PSPC, DND, Canadian Armed Forces, Coast Guard, AND Innovation, Science and Economic Development Canada. This is significant—it's not just consolidating procurement authority, it's physically co-locating experts from all these silos into unified teams.

• Dual Ministerial Access: Both the Minister of Government Transformation/Public Works AND the Minister of National Defence can now tap the Agency for expertise on ANY defence/security/Coast Guard procurement at ANY stage. This breaks down the traditional jurisdictional walls.

• "May Receive Input" vs "Must Go Through": The language is deliberately vague—the Agency "may receive input" on all defence/security/Coast Guard procurements "regardless of stage." This suggests advisory authority even on procurements that don't meet the $100M threshold, which could mean informal influence far beyond the official mandate.

• Fall 2025 Launch: Operations begin this fall, meaning it's happening NOW—not a future promise. The "proving ground" language suggests they'll experiment with new models immediately rather than planning for years.

Our Take: This could transform defence procurement or become another bureaucratic layer—execution will determine which. The appointment of an outside executive signals intent to change culture, but Christyn Cianfarani from the Canadian Association of Defence and Security Industries captures the industry's wait-and-see posture: clear measurement targets and reduced process steps are what contractors need to see. The government promised this in 2019, abandoned it during COVID, and is finally delivering now. 

If you're working in this space, we'd love to hear your take—reach out with insights on how this will actually work in practice. Watch for the forthcoming defence industrial policy in coming months for details on "Buy Canadian" implementation within this new structure.

Major Infrastructure Awards: $1.6B Hospital Tower and Transit Projects Heat Up

UHNBC Acute Care Tower – $1.579B Alliance Contract Source: RenewCanada | Date: October 3, 2025

What's Happening: Northern Health awarded EllisDon Corporation and DIALOG BC Architecture the $1.579 billion Acute Care Tower for University Hospital of Northern British Columbia. Using an Alliance Contract model, construction starts fall 2026 with completion targeted for winter 2031. The project will enhance surgical, cardiac, and mental health services.

What It Means For You:

• Electrical and mechanical packages coming: Alliance participants for MEP systems will be selected by December 2025—if you're in these trades, proposals are due imminently

• Long runway requires planning: Five-year construction timeline demands careful supply chain and workforce planning

• Alliance model rewards collaboration: Integrated project delivery shares risks and rewards among owner, designers, and contractors

Green Line LRT – 78 Avenue Bridge Source: RenewCanada | Date: October 2025

What's Happening: Calgary awarded Graham Construction the contract to build a bridge adjacent to the existing 78 Avenue underpass to carry Green Line LRT tracks. Mobilization starts spring 2026 with completion targeted for October 2026.

What It Means For You:

• Tight construction window: Six-month timeline from mobilization to completion requires efficient scheduling

• Green Line momentum continues: Civil and trade subcontractors should monitor upcoming tender packages for later phases

• Graham expanding Calgary transit footprint: Success here may influence prequalification for future Green Line work

Bowmanville Hospital Redevelopment – RFP Stage Source: RenewCanada | Date: October 2025

What's Happening: Infrastructure Ontario and Lakeridge Health shortlisted two consortia for design-build-finance proposals: Bowmanville Health Partners (Amico Design Build, B+H Architects, Black & McDonald) and PCL Partnerships (PCL Constructors Canada, HDR Architecture Associates, Morrison Hershfield). The project will more than double hospital capacity, adding up to 32 beds, rooftop helipad, expanded critical care, ambulatory care centre, and hemodialysis stations. Preferred proponent announcement expected in 2026.

What It Means For You:

• Healthcare specialty contractors: Opportunities in medical equipment supply and healthcare facility construction

• Community benefits expected: Proponents must address construction disruptions and service continuity concerns

• Over $20M already invested: Provincial commitment to planning signals serious project momentum

Québec City–Lévis Third Road Link – IPD Approach Source: RenewCanada | Date: October 2025

What's Happening: Québec filed a project notice for a third road link connecting highways 20, 440, and 40. A consortium of Hatch, Parsons, and Artelia will lead using Integrated Project Delivery (IPD), exploring bridge, tunnel, or combination options.

What It Means For You:

• IPD relatively new in Québec: Contractors must prepare for collaborative risk-and-reward sharing model

• Tunnelling and bridge specialists needed: Subcontracting opportunities for geotechnical engineering and environmental services

• Potential precedent-setter: May influence future large-scale infrastructure procurement in the province

Bottom Line: Alliance and IPD models are gaining traction for mega-projects, rewarding contractors comfortable with collaborative risk-sharing over traditional low-bid approaches. If you're still operating purely on adversarial contracting mindsets, these opportunities aren't for you.

These new awards also provide a clear menu of the new procurement models we are seeing adopted nationally for infrastructure. Here’s a quick refresher.

Construction Delivery Methods: A Quick Guide

Alliance Contract (UHNBC Acute Care Tower) An Alliance Contract integrates the owner, designers, and contractors into a single team from the start. All parties share commercial risks and rewards through a pain/share-gain mechanism—if the project goes over budget, everyone shares the loss; if it comes in under budget, everyone shares the savings. Key features:

• No traditional adversarial relationships or claims

• Collaborative decision-making through an Alliance Leadership Team

• "Best for project" decisions rather than "best for my company"

• Used increasingly for complex, high-uncertainty projects where design can't be fully locked down upfront

Design-Build-Finance (Bowmanville Hospital) A single entity is responsible for designing, building, and arranging financing for the project. The government/owner makes availability payments over time rather than paying construction costs upfront.

 ey features:

• Single point of accountability for design and construction

• Private financing shifts some financial risk to the contractor

• Life-cycle considerations (because the builder has financing skin in the game)

• Common for public infrastructure through P3 (Public-Private Partnership) models

Integrated Project Delivery / IPD (Québec City-Lévis Link) IPD brings owner, architect, and contractor together in a multi-party agreement with shared risk/reward. Similar philosophy to Alliance Contracts but more formalized in North America. Key features:

• Multi-party contract (not separate contracts between parties)

• Shared financial risk pool—profits and losses distributed based on performance

• Early involvement of all key participants including trades

• Collaborative decision-making and transparency

• Relatively rare in Canada—Québec using it here signals procurement innovation

Traditional Design-Bid-Build (Not mentioned here, but for context) Owner hires architect to complete design, then bids construction to lowest qualified bidder. Sequential and adversarial—architect and contractor have separate contracts with owner. This is what most of these alternative delivery methods are trying to improve upon by reducing change orders, claims, and finger-pointing.

Why This Matters: If you're a contractor used to traditional low-bid environments, these collaborative models require different skills—relationship management, transparency, and willingness to share financial information. They also tend to favor larger, more sophisticated firms who can handle the complexity and risk-sharing mechanisms.

Shared Services Canada Achieves 11th Consecutive Year of Sustainable IT Procurement Excellence

Source: Government of Canada | Date: October 3, 2025

What's Happening: Shared Services Canada (SSC) has earned recognition from the Global Electronics Council for the 11th consecutive year for leadership in environmentally responsible electronics procurement. In fiscal 2024-25, SSC procured 364,994 EPEAT-certified products, generating projected savings of $5.1 million through reduced energy consumption, extended product life, and lower disposal costs.

You can’t find a news story on this because it does not seem to be a ‘big deal’, but this is the type of easy credential win that can give you an edge on future procurements.

What It Means For You:

• EPEAT certification becoming mandatory: Government IT procurement increasingly requires Electronic Product Environmental Assessment Tool certification for computers, servers, networking equipment, and mobile devices

• Lifecycle documentation expected: Contractors must demonstrate product sustainability from manufacturing through recyclability, including supply chain labour and human rights standards

• Cost-benefit analysis matters: Procurement officers want quantifiable environmental benefits—energy savings, extended lifecycles, reduced disposal costs—not just compliance checkboxes

• Federal trend cascading downward: SSC's 11-year track record signals sustainable procurement standards pioneered federally will spread to provincial and municipal governments

Strategic Context: This recognition reflects Canada's broader commitment to net-zero emissions by 2050. Procurement officers now integrate environmental, social, and economic responsibility criteria alongside traditional performance and cost factors. Contractors who establish strong environmental credentials now will be well-positioned as these standards become universal across Canadian public procurement.

So what should we care about?

This week's updates share a common thread: procurement is moving from adversarial, siloed, lowest-bid thinking toward collaborative, integrated, outcome-focused approaches. Whether it's Alliance Contracts sharing risk and reward, the Defence Investment Agency consolidating authority, or sustainable procurement prioritizing lifecycle value over upfront cost, the message is clear—relationships, transparency, and long-term thinking are replacing the old procurement playbook.

The winners will be contractors who can demonstrate genuine Canadian credentials, embrace collaborative risk-sharing, and move at the speed of government's new urgency. The losers will be those still optimizing for traditional low-bid adversarial contracting.

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