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Federal Guard Contracts Open to Competition in 2027: How to Get Ready

From April 1, 2027, federal guard contracts in Canada go to open competition. What is changing, and how security companies can get ready to bid.

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Novagems Editorial Team

Nov 6, 2026 · 6 min read

Federal Guard Contracts Open to Competition in 2027: How to Get Ready

For more than 80 years, federal departments in Canada have had to offer their guard work to the Commissionaires first. That rule ends on March 31, 2027. From April 1, 2027, federal guard contracts will go through regular competition, according to Veterans Affairs Canada.

The government spends about $350 million a year on guard contracts under this rule. Security companies of any size will be able to bid for that work, and the first contracts are already moving to new suppliers.

What is changing

  • The rule: Since 1945, the Right of First Refusal policy has required federal departments to ask the Canadian Corps of Commissionaires for guard services before going to any other supplier. It covers posts such as access control, reception desks, patrols, screening, escorts and vehicle patrols.
  • The end date: The current policy was due to end on March 31, 2026. It was extended by one year, to March 31, 2027, to give veterans, the Commissionaires, the industry and departments time to prepare.
  • What replaces it: From April 1, 2027, guard services contracts will be awarded through regular competitive processes. The Commissionaires can still bid.
  • Who buys: Public Services and Procurement Canada (PSPC) usually buys guard services for federal departments. Some departments buy on their own.
  • The court challenge: The Canadian Press reported in April 2026 that the Commissionaires are taking the government to court over the decision. We found no ruling reported as of early November 2026, so check for news before you plan around the date.

The first contracts are already moving

In June 2026, the Canada Revenue Agency awarded its National Security Guard Services contract to Universal Protection Service of Canada, a subsidiary of Allied Universal. The contract is worth about $11.9 million over two years, with options to extend. The Commissionaires had held this work before.

The CRA used open bidding and chose the bid with the “highest combined rating of technical merit and price.” CBC reported that the two bids were only about $80,000 apart, under 1% of the contract’s value, and that the CRA looks at more than price, including past performance.

When prices are that close, the technical part of your bid decides the result. That is where you prove how well you run your sites.

How to get ready before April 2027

1. Register to bid

  • Federal tender notices and contract awards are posted on CanadaBuys. Anyone can browse them for free.
  • To bid, register as a supplier on CanadaBuys and complete your business profile. You need a Canada Revenue Agency business number.
  • Many PSPC opportunities are bid through SAP Ariba, so register there too. Bids made outside SAP Ariba need a procurement business number from Supplier Registration Information (SRI).
  • Check CanadaBuys for “security guard services” tenders often, so you see new ones as soon as they post.

2. Study who holds the work now

  • CanadaBuys also shows contract history. Search it for guard services to see which companies hold federal guard work in your region, and when those contracts end.
  • The Commissionaires’ national standing offer for guard services ends on March 31, 2027, the same day the rule ends.
  • Private companies already hold some federal guard work through PSPC’s guard services supply arrangement, so federal buyers are used to working with them.

3. Start on security screening early

  • Many federal guard contracts have security requirements, because guards work in government buildings and around protected information.
  • Your company cannot apply for screening on its own. It must be sponsored. Usually, the federal procurement officer sponsors you during bid evaluation, after you include the Application for registration (AFR) form with your bid.
  • A designated organization screening (DOS) lets your company have its staff screened to reliability status, for protected material and sites. A facility security clearance (FSC) is for classified levels, such as Secret.
  • Once you are sponsored, the Contract Security Program contacts you. You sign a security agreement and appoint a company security officer.
  • Screening is not instant. Read the security requirements in each tender as soon as it posts.

4. Keep every guard licensed

  • Every guard you put on a federal post still needs a valid licence in the province where they work.
  • Track every licence expiry date, so no one lapses partway through a contract.

5. Build your proof of past performance

  • Collect references from current clients, especially public sector clients.
  • Keep records that show how you deliver: shifts filled on time, patrol and checkpoint logs, incident reports and client reports.
  • Write down your post orders, training and supervision. The technical part of the bid is where you show them.

6. Watch for veteran hiring terms

  • The old rule existed to give veterans jobs. The government says it will keep supporting veteran employment in the guard industry through its National Veteran Employment Strategy.
  • Members of Parliament have asked whether companies that win these contracts will have to hire veterans (written question Q-1159, April 2026). Read each new tender for veteran hiring terms, and consider recruiting veterans now.

7. Price with care, but don’t compete on price alone

  • On the CRA contract, the two bids were less than 1% apart.
  • Know your real cost per post hour, including overtime and supervision, before you bid. Our guide on how to price security guard contracts walks through it.

Where Novagems fits

A federal bid asks you to prove you can run the work. Novagems keeps that proof in one place:

It is the same system Canadian operators use for security guard management in Canada. For bidding in general, see our guides on how to bid on government security contracts and how to win local government contracts.

Getting ready for federal work? Start your 14-day free trial and have your records in order before April 2027.

This article is general information, not legal or procurement advice. Rules and dates can change, so check each tender and the official sources below.

Sources

  • Veterans Affairs Canada, Question Period Note VAC-2026-QP-00028, Right of First Refusal Policy (April 2026): open.canada.ca
  • Veterans Affairs Canada, Policy on Procurement of Guard Services: veterans.gc.ca
  • CanadaBuys, guard services standing offer with the Commissionaires (ends March 31, 2027): canadabuys.canada.ca
  • CanadaBuys, CRA National Security Guard Services award notice (June 16, 2026): canadabuys.canada.ca
  • CBC News, on the CRA contract and the gap between the bids: cbc.ca
  • The Canadian Press, on the court challenge (April 24, 2026): panow.com
  • House of Commons, written question Q-1159: ourcommons.ca
  • PSPC, Electronic procurement: canada.ca
  • PSPC Contract Security Program, Sponsorship process: canada.ca
  • PSPC Contract Security Program, Organization security clearances: canada.ca

Frequently Asked Questions

What is the Commissionaires' right of first refusal?

It is a federal policy, in place since 1945, that requires federal departments to ask the Canadian Corps of Commissionaires for guard services before going to any other supplier. It was set up to give veterans jobs.

When does the right of first refusal end?

The policy ends on March 31, 2027. From April 1, 2027, federal guard services contracts will be awarded through regular competitive processes, according to Veterans Affairs Canada. The Commissionaires have challenged the decision in court, so watch for news before you plan around the date.

Can a private security company bid for federal guard contracts?

Yes. From April 1, 2027, federal guard contracts go through regular competition, and the Commissionaires can bid too. Some federal guard work is already open. In June 2026, the Canada Revenue Agency awarded its national guard contract through open bidding.

Where are federal guard tenders posted?

On CanadaBuys, the Government of Canada's official site for tender notices and contract awards. Anyone can browse it for free. To bid, register as a supplier and have a Canada Revenue Agency business number. Many Public Services and Procurement Canada tenders are bid through SAP Ariba.

Does my security company need a federal security clearance?

Many federal guard contracts have security requirements. Your company cannot apply on its own. A federal procurement officer usually sponsors you during bid evaluation, after you include the Application for registration form with your bid. A designated organization screening lets your company have its staff screened to reliability status.

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Novagems Editorial Team

The Novagems team writes practical guides for security and cleaning company owners on workforce management, scheduling, and operations.

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