Canadian Content Requirements

Canadian content requirements are conditions in a procurement that require a bid, good, service or contract to include a specified proportion or value of Canadian goods, services, labour, manufacturing, processing, research and development, intellectual property or other Canadian value-added activity.

In federal procurement, these requirements work in three ways. A competition can be limited to Canadian goods or services, a bidder can be required to certify its Canadian content, or a buyer can award evaluation points for higher Canadian-content commitments. The rules sit within the federal Canadian Content Policy and newer Buy Canadian measures.

Where the Canadian Content Policy applies

The Canadian Content Policy normally applies to goods and services contracting carried out by the Public Services and Procurement Canada (PSPC) Acquisitions Program. The Department of National Defence (DND) must also apply it to applicable transactions or orders for defence supplies, following a Cabinet decision. The scope is set out on the CanadaBuys policy application page.

The policy covers competitive procurements with an estimated value of $25,000 or more, as stated on the same application page. It excludes certain procurements, including those covered by international trade agreements and certain Cabinet-mandated sourcing programs.

Limited, conditionally limited and open solicitations

Before issuing a solicitation, the buyer determines whether at least two eligible suppliers could provide Canadian goods or services. The result decides how the competition is run. According to the CanadaBuys guidance on preparing solicitations, a solicitation may be:

• Solely limited to Canadian goods or services.
• Conditionally limited to Canadian goods or services.
• Open to all suppliers.

Where a procurement is solely or conditionally limited, the offeror must certify that the good or service offered meets the applicable definition of Canadian goods or services. For requirements covered by the policy, at least 80% of the total offer price must consist of Canadian goods, Canadian services, or a combination of the two, depending on the requirement, as set out in the same guidance.

Evaluation points in strategic federal procurements

The 2025 Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Federal Procurements adds a points-based approach. Under it, evaluation can award additional points based on Canadian goods, services and value-added content, including intellectual property and research and development. PSPC describes the approach on its Buy Canadian page.

Canadian steel, aluminum and wood requirements

A separate measure, the Policy on Prioritizing Canadian Materials in Federal Procurement, applies to materials. It requires Canadian-produced steel, aluminum and wood products for qualifying federal defence and construction procurements valued at $25 million or more, where at least $250,000 of those materials is required and a Canadian source is available. The Treasury Board Secretariat policy notice sets out these conditions.

Materials must be manufactured or processed in Canada. Buying them from a Canadian company is not sufficient, as the Government of Canada announcement on the policy explains.

What this means for a supplier bidding on Canadian public contracts

Start by reading the solicitation to see whether it is limited or conditionally limited to Canadian goods or services. When it is, submit the required certification with the bid. DND solicitations on CanadaBuys, for example, can state that only bids accompanied by the Canadian-goods certification may be considered, and the CanadaBuys defence example identifies clause A3050T.

• Confirm that your offer meets the applicable Canadian-content definition and any minimum threshold.
• For strategic procurements, identify and substantiate the Canadian goods, services, manufacturing, processing, intellectual property and research and development in your offer.
• For qualifying materials procurements, document that steel, aluminum and wood products were made or processed in Canada.