Public Procurement 2024 Year in Review

In 2024, Canada’s procurement sector saw significant developments driven by court and tribunal decisions, and updates to laws and policies. As these rulings continue to shape legal interpretations and standards, stakeholders must stay informed to identify opportunities, mitigate risks, and maintain compliance with various evolving regulatory frameworks.

Developed by our National Procurement Group comprising skilled and informed advisors, Public Procurement 2024 Year in Review is a practical guide to key developments in procurement law over the past year. We review the key changes in procurement policies and methods by Canadian public purchasers, and provide an in-depth analysis of new decisions from procurement-related administrative tribunals/the federal court, as well as various provincial courts.

Topics covered include:

Key Developments at the Federal Level: Canada’s New Debarment Policy; the federal government’s new Office of Supplier Integrity and Compliance; the landmark decision by the Canadian International Trade Tribunal regarding bidder compensation for lost opportunities; an unprecedented invocation of the Canada Evidence Act by the Attorney General; and the ongoing Chantier Davie and Wärtsilä procurement saga before the Tribunal.

Key Developments in Ontario: The province’s “Buy Ontario” mandate issued by the Building Ontario Business Initiative Act; the launch of Ontario’s largest-ever competitive energy procurement; clarification on the limitation period for claims and implied duty of fairness in procurement law; and carrying through on the duty of good faith for all contracting parties.

Key Developments in Western Canada:

British Columbia: BC’s new procurement plan which encourages an equitable, accessible, sustainable procurement framework; and clarifying the obligations and rights of parties involved in the tendering process.

Alberta: Auditor General’s report on highway maintenance contracts highlighting deficiencies and suggestions on process improvements; domestic trade agreements; and, supporting local businesses for procurement.

Saskatchewan: The importance of transparency in public procurement in the wake of a lawsuit against the government of Saskatchewan over an alleged breach of a procurement contract.

Key Developments in Québec: Bidder and issuer responsibilities relating to ambiguous instructions within tender documents; the importance of adhering to filing deadlines when claiming compensation for work outside the scope of a contract; defining what constitutes a compliant bid; and a decision about who bears responsibility and costs for change requests and project delays.

Key Developments in Newfoundland and Labrador: The introduction of two new procurement strategies to maximize the success of local suppliers in obtaining government contracts.

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Public Procurement 2024 Year in Review

This year was one of significant developments (and some rebalancing) at the federal level. A new debarment policy increases risks for suppliers, whereas Canada received reminders from the Federal Court of Appeal and the Canadian International Trade Tribunal (the “Tribunal”) that it cannot act with high-handed impunity.

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Procurement law in 2024 saw a number of major strides forward in caselaw and policy. This includes a complete overhaul of the federal integrity regime, and the initiation of a preferential procurement system for Ontario businesses. Courts and tribunals have also been active, with several critical cases circumscribing the scope of both substantive obligations of purchasers, as well as remedies available to aggrieved bidders.

We have prepared a practical guide to important developments in procurement law over the past year in this Public Procurement 2024 Year in Review. In particular, we review the key changes in procurement policies and methods by Canadian public purchasers, as well as provide an in-depth analysis of new decisions from procurement related administrative tribunals/the Federal court, as well as various provincial courts.

About McCarthy Tétrault’s Procurement Group

Our Public Procurement Group consists of more than 25 lawyers nationally. Our principal areas of practice include project development, Technology, Energy, Infrastructure, International Trade & Investment, Tax, and Public Law. Our procurement lawyers provide end-to-end legal support for both buyers and sellers, ensuring compliance, mitigating risks, and securing cost savings. We assist private sector companies and government entities at all levels in drafting RFPs, negotiating contracts, and handling bid disputes. Whether you’re selling to or purchasing from Canadian markets, we help you navigate procurement agreements, optimize contracts, and resolve challenges efficiently.

Procurement is evolving rapidly, with increasing regulatory complexity, heightened competition, and greater scrutiny from shareholders, management, and the media. As governing bodies continually change procurement rules, businesses must navigate these changes strategically to minimize risks and maximize opportunities.