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Ministers ask senior officials to review procurement contracts, find savings

Finance Minister Champagne and colleagues seek contract savings to address rising costs and budget deficits, with officials given 45 days to propose spending cuts in federal procurement.

  • Finance Minister Franois-Philippe Champagne and Public Works Minister Jol Lightbound asked senior officials on Sept. 12, 2025, to review federal procurement contracts to find cost savings.
  • This directive followed a federal audit criticizing procurement flaws known for years and calls by federal ombud Alexander Jeglic in July 2025 for a major system overhaul.
  • The review targets contracts worth roughly $66.9 billion annually, emphasizing renegotiations in IT, real property, construction, and travel, while promoting digital solutions and provincial cooperation.
  • Champagne instructed cabinet colleagues in July 2025 to cut program spending by 7.5 percent for the fiscal year starting April 1, 2026, asserting this is a step toward a more efficient government.
  • The effort supports Prime Minister Mark Carney's aim to reduce operating costs by 15 percent over three years as part of austerity measures ahead of the October 2025 federal budget release.
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The purpose of this review is to identify ways to achieve savings.

·Montreal, Canada
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Ministers ask senior officials to review procurement contracts, find savings

Canada’s ministers of finance and procurement have given officials in charge of most federal contracting 45 days to come up with a plan to review all existing and planned federal contracts to find ways to save money.

·Canada
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The Globe & Mail broke the news in Canada on Friday, September 12, 2025.
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