As Saint John, New Brunswick, navigates the tail end of 2025, local businesses are keenly observing economic shifts. With the holiday season approaching, many are focused on local consumer spending, while others are looking at broader opportunities. Interest rates continue to be a significant factor in investment decisions, and businesses are always seeking avenues for growth and stability. One such avenue, often overlooked but critically important, is federal procurement. Recent developments from Ottawa signal a significant push for foundational changes in how the federal government conducts its purchasing, a move that could open new doors and streamline processes for businesses right here in Saint John.

A Call for Foundational Change in Federal Procurement

Federal Procurement Ombud Alexander Jeglic recently released his 2024-25 Annual Report, titled ‘Time for Solutions,’ which was tabled in Parliament on October 7, 2025. The report highlights the urgent need for foundational changes in federal procurement to address long-standing challenges. The goal is to create a more user-friendly system that delivers better outcomes for taxpayers and, by extension, for Canadian businesses like those in Saint John seeking federal contracts.

Five Pillars of Modernization

The Ombud’s report outlines five critical foundational changes designed to modernize and improve the federal procurement landscape:

1. Establishment of a Federal Chief Procurement Officer (CPO): This new role would ensure effective oversight and strategic direction for all federal procurement activities.
2. Creation of a Government-Wide Vendor Performance Management (VPM) System: A standardized system would enhance supplier accountability and provide clearer feedback mechanisms.
3. Development of One Universally Applicable Set of Federal Procurement Rules: This aims to simplify the currently complex federal procurement landscape, making it easier for businesses to navigate.
4. Use of Artificial Intelligence (AI) Advancements: Integrating AI into procurement tools and systems promises to modernize operations and improve efficiency.
5. Establishment of a Framework for Procurement Data Collection: This initiative seeks to increase the transparency of federal procurements, offering more insights into contracting processes.

Impact on Saint John Businesses

For Saint John businesses, these proposed changes could mean a more accessible, transparent, and fair federal contracting environment. Simplified rules, enhanced oversight, and clearer performance management could reduce barriers to entry for small and medium-sized enterprises (SMEs) in our region. The integration of AI and better data collection could also lead to more efficient processes, potentially speeding up contract awards and payments. While significant changes are still needed, the Office of the Procurement Ombud has already seen federal departments implement recommendations to address concerns like ‘unfair, overly restrictive, or biased’ evaluation criteria, demonstrating the tangible benefits of sustained oversight.

In 2024-25, the Office of the Procurement Ombud handled 670 procurement-related cases, a notable increase from 582 in the previous year. They also launched 42 reviews of formal complaints from Canadian suppliers, underscoring the ongoing need for these systemic improvements. As Procurement Ombud Alexander Jeglic stated, “Band-aid solutions are no longer acceptable; the time for solutions is now.”

Saint John businesses interested in federal contracting should stay informed about these developments. For more details, you can read the full news release on the Canada.ca website.

Frequently Asked Questions

What is the Office of the Procurement Ombud (OPO)?

The Office of the Procurement Ombud (OPO) is a neutral and independent organization within the Government of Canada. Its role is to help resolve contracting disputes between Canadian businesses and the federal government, investigate complaints, provide dispute resolution services, and recommend improvements to federal contracting issues.

Why are these changes important for businesses in Saint John?

These changes aim to make federal procurement more user-friendly, transparent, and fair. For Saint John businesses, this could mean easier access to federal contracts, reduced administrative burdens, and a more equitable playing field when bidding on government projects.

What are the five foundational changes proposed in the report?

The five proposed changes include establishing a federal Chief Procurement Officer, creating a government-wide vendor performance management system, developing a single set of federal procurement rules, utilizing AI advancements, and establishing a framework for procurement data collection.

Where can I find the full report?

The full 2024-25 Annual Report by the Procurement Ombud can be found on the Canada.ca website.