83% of Federal Contracts Are Small: Where to Win One

Small contracts are most of the count and a sliver of the value

Federal departments reported 205,572 contracts dated 2023 to 2025 under proactive disclosure, which covers contracts over $10,000. Of those, 170,631 were under $100,000. That is 83.0% of the count but only 6.1% of the value.

The size bands show where that volume sits. Contracts under $25,000 numbered 101,462, or 49.4% of all reported contracts. Contracts from $25,000 to $99,999 numbered 69,169, or 33.6%. Contracts of $100,000 and up numbered 34,941, or 17.0%.

For a supplier, the practical read is simple. The federal market's contract count is dominated by small buys, and almost half of all reported contracts are under $25,000. If you are new, your first win is far more likely to come from a small buy than from a large one.

Which departments sign the most small contracts

Ten departments account for a large share of contracts under $100,000. National Defence leads with 45,914 contracts under $100,000 and 11,900 distinct suppliers. Fisheries and Oceans Canada follows with 18,374 contracts and 4,726 distinct suppliers.

Correctional Service of Canada signed 11,098 contracts under $100,000 with 1,768 distinct suppliers. Public Services and Procurement Canada signed 11,054 with 2,621 distinct suppliers. Global Affairs Canada signed 9,095 with 4,543 distinct suppliers.

Further down the list: Royal Canadian Mounted Police with 7,663 contracts and 2,067 distinct suppliers; National Research Council Canada with 6,910 and 2,591; Parks Canada with 6,439 and 2,370; Environment and Climate Change Canada with 5,730 and 2,436; and Natural Resources Canada with 4,680 and 1,903.

The supplier counts matter as much as the contract counts. A department with many contracts and many suppliers is buying widely. A department with many contracts and few suppliers is buying repeatedly from a narrower group. Compare the two columns before you pick where to focus.

What departments buy under $100,000

The most common categories for contracts under $100,000 include goods and services codes that repeat across departments. R019 appears on 5,031 contracts under $100,000. Code 0 appears on 3,709. Water transport vessel maintenance and repair services appears on 3,353.

Other frequent categories are U099 with 3,003 contracts under $100,000, 7030 with 2,763, Drugs and Biologicals with 2,760, Aviation Fuel with 2,561, N8900 with 2,524, 6600 with 2,262, and R109 with 2,244.

Several of these are codes rather than plain descriptions. If you sell in one of these areas, check how the code is defined on the tender notice itself rather than guessing from the label. If your product or service does not appear here, that does not mean departments do not buy it. It means it is not among the ten most common categories for small contracts in this window.

How often small contracts are competed, and how many bids they draw

Of the contracts under $100,000, 63.6% were competitive. The rest were not, which is consistent with departments buying through standing offers and supply arrangements, where suppliers must qualify before they can receive call-ups.

Bid counts come from the number-of-bids field, which is reported for part of the competitive contracts only. Among small contracts with a reported bid count, 45,837 in total, 63.4% drew a single bid and 26.2% drew two to three bids.

That is the most useful pair of numbers for a small supplier. Most small contracts are competed, and most of those that report a bid count attract only one bid. A supplier who finds a relevant notice and submits a compliant bid is often not competing against a crowd.

The limit is real: bid counts are not reported for every competitive contract, so these shares describe the subset with a reported count, not all small contracts.

Most suppliers win once or twice

Across 2023 to 2025, 45,177 suppliers won at least one reported contract. Of those, 34,056 won only one or two contracts, which is 75.4% of suppliers.

This count uses matched company records. Unmatched name variants count separately, so a supplier that appears under more than one name may be split across records. Treat the 75.4% as a strong signal rather than an exact count of unique businesses.

The signal is that the federal market is not closed. Three in four suppliers who won anything won only one or two contracts, which means first and second wins are common. It also means that turning a first win into a repeat relationship is where suppliers separate themselves.

Where the opportunities are posted right now

Federal tender notices are published on CanadaBuys at canadabuys.canada.ca. At the time of this data snapshot, 875 federal tenders were open.

Procurement Assistance Canada, part of Public Services and Procurement Canada, offers free information sessions and help for small and medium businesses. That support is free, and it is aimed at suppliers at your stage.

Many departments buy through standing offers and supply arrangements. Suppliers must qualify for those before they can receive call-ups. If you only watch open tenders, you will miss the call-up volume that flows through arrangements you have not qualified for.

Practical steps for a first-time supplier

Start with the departments that buy small and buy widely. National Defence signed 45,914 contracts under $100,000 with 11,900 distinct suppliers, and Fisheries and Oceans Canada signed 18,374 with 4,726. Those supplier counts show room for new entrants.

Register on CanadaBuys and set up saved searches for the categories that match what you sell. Check the categories table for codes that repeat, then confirm the definition on the notice itself.

Qualify for standing offers and supply arrangements in your category. With 63.6% of small contracts competitive and call-ups flowing through arrangements, qualification is what puts you in line for work that never appears as an open tender.

Bid on small contracts first. With 101,462 contracts under $25,000 and 69,169 from $25,000 to $99,999, there is no shortage of entry points. Where a bid count is reported, 63.4% of small contracts drew a single bid, so a compliant bid has a real chance.

Use Procurement Assistance Canada's free sessions before you bid. They exist for small and medium businesses and cost nothing.

Plan for repeat business from day one. Since 75.4% of suppliers won only one or two contracts, the suppliers who win more are the ones who deliver well and stay qualified. Track every notice you bid on, every result, and every standing offer you hold.