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ARTICLE · 12 FEBRUARY 2025

New Federal Regulations May Significantly Impact Competitive Procurement Processes

Although a generally quiet and unassuming set of regulations, this recent change brings the Government Contracts Regulations (GCRs) front and center.

CanadaGovernment, Public Sector

Although a generally quiet and unassuming set of regulations, this recent change brings the Government Contracts Regulations (GCRs) front and center.

We explain below the purpose of the GCRs, how they are different from a National Security Exception (NSE), and consider potential impacts of the amendments.

What are the GCRs?

The GCRs are a small set of regulations enacted under the Financial Administration Act in the 1980s and apply to the vast majority of procurements by the federal government1. Most of the regulations deal with internal government operations and contracting processes (e.g., "indoor management rules"). One of these rules require that Canada must compete all procurements for goods above $25,000 and for services above $40,000, subject to limited exceptions.2

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