This article was written in partnership with our friends at Fasken.
It is well known by now that Canada is significantly lagging on climate action compared to our fellow G7 nations. Without a serious uptake in cleantech adoption, we will face significant challenges in achieving our net zero targets. However, what we do have is a wealth of innovators, experts, and cleantech companies eager to scale their operations. Canada is home to countless ventures ready for commercialization and large-scale implementation. Government procurement is a crucial market for these ventures to drive meaningful change and accelerate our transition to a sustainable future.
As federal, provincial, and municipal governments start to address the climate crisis with more urgency, opportunities for ventures increase. It is important for ventures to be aware of these opportunities and know how to take full advantage of them when they arise.
We recently spoke with Marcia Mills, a partner at Fasken who has been practicing in the areas of national security and procurement for decades, to discuss some of the ways startups should approach government procurement bids, how they can protect their IP, what defines an advantage in government procurement opportunities, and how to avoid key mistakes when interacting with government purchasers.
She shared with us her insights and advice:
Build Your Foundation
Forming strong relationships with government procurement officers is crucial for startups. Governments have multiple divisions, all with unique and specific goals and constraints. Decision-makers are faced with both internal and external policies, processes, and pressures, and their decisions are always subject to public scrutiny. It is important that any venture looking to secure a government contract understand what these divisions aim to accomplish the pressures they face.
Mills recommends that ventures approach government procurement officers as they would any pitch opportunity: be prepared and informed. Understand procurement officers’ role, capabilities, and limitations, including conflict of interest obligations. Government processes emphasize open, fair, and transparent approaches, and, as Mills notes, it is key to adhere to communication protocols, respecting the procedural framework.
Fostering a positive relationship with procurement officers also requires addressing any bidding-process issues promptly by providing solutions. Government is often resource-constrained, so proposing solutions can facilitate collaboration. Recognizing and adhering to the rules governing the public sector institutions (including their conflict of interest policies and rules) ensures a positive and effective working relationship.
Protect Your IP
You’ve landed a government deal. Now, how do you ensure your innovative achievements remain your business’s achievements? Mills says that it is crucial to ask yourself this question prior to landing a government contract—well ahead of any procurement process or negotiations. Speak to a lawyer from the very beginning when an opportunity arises so you know what is possible and how to get there. Have a strong understanding of your IP before you even begin to bid.
Ensure you understand all the implications of a government contract during the RFP stage. What rights is the public entity looking for? In some cases, they might want ownership over any documentation you produce while under contract or license rights for what you produce. Know what your company is being asked to provide. Is any of this information proprietary? Can they break down the report and circulate the information? What kinds of copyright notices and restrictions should be on your documents? Mills notes that the government has a legal responsibility to make information accessible to Canadians, so you should know the implications of disclosing any information—including your IP—early on.
Do not go into a procurement process thinking that the terms can be negotiated at a later date. Determine whether the terms are negotiable at the RFP stage and ask questions. The best way to protect your IP is to fully understand what you are bidding on then determine whether this is an opportunity you can take based on whether or not it aligns with protecting your IP.
Know Your Stengths
When vying for a government contract, keep in mind your business's strengths but also respect the nature of the ask. It is best, Mills explains, to look for opportunities that align with what your company does. Government procurement has a very specific process—you either meet the requirements or you don’t.
While private enterprises can take risks when looking for innovative solutions, governments can’t and are instead subject to strict procurement rules, internal pre-approvals, and public audits. Because they use public tax dollars to fund projects, government buyers can be highly risk averse.. Therefore, proven solutions will have an advantage in the public sector. Mills recommends startups and smaller ventures seek opportunities in start-up programs or smaller scale or regional-based procurements (such as at the municipal level) where there may be greater flexibility in the processes. She notes that federal opportunities, for example, have a high degree of rigidity as well as greater risk and liability requirements.
Mills also suggests that if the solution requirements are unreasonable, it is entirely justifiable (and a bidder obligation in procurements) to speak up. For example, if an opportunity requires five years of experience when the technology has only been available for three, raise this issue in the bidding stage. The contracting officer may have simply used a five-year period as a baseline, and not necessarily considered the lifespan of the technology being acquired. When looking for opportunities to build your business’s credibility, Mills suggests looking for innovation programs and getting involved in government programs offered to SMEs. Foresight offers many tailored programs and support that can help you scale your business and reach the commercialization stage.
Avoid Common Mistakes
1. Do not wait for an RFP to be available to you.
Keep an eye on government projects. This will help you forecast what opportunities might be available soon. You can interact with the government in other ways before an RFP is open. Reach out to relevant departments and set up a meeting to present your solutions. A government relations practitioner can help you learn how to gain opportunities and get involved in government programs.
RFP requirements can be lengthy. Try and determine: What does this government buyer focus on? What are the common requirements that bidders must meet? Create a draft proposal while you search for opportunities with some of the most commonly necessary requirements so you’re ready when an opportunity arises.
2. Take advantage of Q&A sessions.
Once an RFP is released, there is usually some form of question and answer opportunity (either in-person meetings or written submissions). Attend these sessions and submit questions to fully understand the scope and requirements of the project—government buyers expect questions, so use the opportunity wisely.
3. Do not include information or materials that are not required for your bid, unless the RFP specifically permits it.
It is important to follow the instructions of the bid, as well as the specific requirements. If you include additional materials in your bid when they were not asked for, these materials will not be evaluated. If you offer something that doesn’t meet the requirements, your bid will be disqualified. Always respond to the requirements of the RFP, not what you think a government might like to have.
4. Always attend the debrief sessions.
Whether or not your solution was selected, attending a debrief is always important. Knowing what your business’ specific strengths were in the process and where there is room for improvement are still key things to note, even as the chosen solution. Officials might highlight an area of concern that was not previously on your radar, and this is very important feedback for future RFPs.
Bring Your A-Game
Overall, it is paramount you know the ins and outs of what you are bidding for as well as your own company’s strengths and weaknesses. Build a strong foundation with government procurement officers by applying relationship management best practices, respect the nature of the bidding process, ask questions where clarification is needed, and use all the available resources and opportunities to learn more.
As Canada tackles climate challenges, opportunities for ventures to implement innovative solutions will hopefully expand across all levels of government. But don’t wait for these chances to come to you—actively seek them out. Gain experience, learn the process, connect with the right people, and stay engaged. Deepen your understanding of your company and build credibility so that when these opportunities arise, you're fully prepared—not just as a business, but as a leading innovator navigating the procurement process.
Additional Resources:
Government Contracts, Procurement and Tender Law in Canada (Fasken)
Procurement Advice and Best Practices (Government of Canada)
