OTTAWA – Canada’s ministers of finance and procurement have given officials in charge of most federal contracting 45 days to come up with a plan to review all existing and planned federal contracts to find ways to save money.
The directive made by Finance Minister François-Philippe Champagne and Public Works and Procurement Minister Joël Lightbound is the latest cost-savings directive from the federal cabinet as Prime Minister Mark Carney looks to cut government operating spending by 15 per cent over the next three years.
It came in a letter sent on Thursday to the deputy minister of public services and procurement, as well as the chief information officer and senior officials at the Treasury Board and Shared Services Canada.
Lightbound and Champagne say the plan should include a process for assessing existing and planned contracts to find savings.
It is to include a study of international best practices in contracting, and a plan to prioritize commercially available solutions by Canadian vendors.
It is also looking to renegotiate contracts in the areas with the greatest potential for finding savings including IT, real property, construction and travel.
The letter says the proposal should also include a way to engage with provinces and territories to pool their buying power on major procurement contracts and prioritize digital procurement solutions.
Champagne said in a statement to The Canadian Press that the federal government is one of the largest buyers in the country, with over $66 billion in goods and services purchases every year.
He said that’s why he and Lightbound have asked senior officials to review all contracts so Canada “can spend less on operations and deliver better value for Canadians.”
“This is another step in building a more efficient government that delivers for Canadians,” said Champagne.
In July, federal procurement ombud Alexander Jeglic called for a major overhaul of the government’s procurement system and criticized the government for doing nothing to fix problems in procurement that it had known about for years.
Jeglic said Canada must do better at reviewing and reporting on the performance of the companies and people it hires.
There have been several major contracting problems uncovered in recent years, including the ballooning costs to create the ArriveCan app during the COVID-19 pandemic. A federal audit of those contracts also slammed the federal government’s procurement system.
This report by The Canadian Press was first published Sept. 12, 2025.
