Boss Moves: How to secure a public-sector contract

Expert advice for founders navigating government procurement processes

In this series, we tackle the thorniest questions facing business leaders today.

Dear Stymied,

Government procurement is indeed a challenging maze in Canada, often favoring larger, well-resourced companies. This can feel disqualifying for early-stage startups. RFPs often target existing solutions, which can sideline innovative technologies like yours.

To help you navigate this landscape, we consulted Andrew Murray, co-founder and CEO of Aslan Renewables, which has effectively integrated distributed hydroelectric power in various Canadian communities and secured government funding for it. Murray has firsthand experience with procurement from local to provincial levels, and here’s his valuable advice.

Start smaller than you think

Murray acknowledges the frustration with RFPs; they can indeed put smaller companies at a significant disadvantage. Instead of aiming too high at first, he suggests targeting the lowest levels of government where your solution could make an impact. Local municipalities are generally more innovative and eager to experiment with new solutions.

A partnership with a municipality can yield real data and community support, which can solidify your business case for higher government levels later on.

Look for side doors

Murray suggests reaching out to economic development agencies like Opportunities New Brunswick or Invest Ontario. These organizations aim to connect companies to government bodies and can be open to understanding how your solution fits their needs. Your pitch should emphasize local benefits and engagement.

Turn time into leverage

Many startups feel they need a government contract to secure capital, but Murray emphasizes that time is the real constraint. Be patient; he estimates the procurement process can take 1.5 to 2 years, depending on the novelty of your solution. Use this time to work on community-level deployments that generate revenue and testimonials, which can strengthen your position in future discussions with higher government entities.

Don’t mistake politeness for progress

A common misstep is interpreting a friendly conversation with government officials as real momentum. Push for concrete next steps, and if there's interest, seek specifics on how to advance the conversation. When Aslan faced procurement barriers in Ontario, they shifted focus to local conservation authorities, opening up new avenues.

The founders who succeed aren't those who wait passively. They're proactive, engaging deeply with communities, and adapting swiftly to the landscape. “Canadian companies are becoming leaner and more pragmatic,” says Murray, embodying true grit.

Are you a business leader with a conundrum? Write to us at media@marsdd.com.

Photo illustration: Stephen Gregory; photos: Unsplash