As the GNWT's March 31 fiscal year-end approaches, NWT businesses can take steps to prepare for upcoming government procurement opportunities. These include confirming Business Incentive Policy (BIP) registration, understanding procurement thresholds, maintaining strong contract performance and monitoring policy developments. Indigenous-owned businesses should also consider registering with recognized Indigenous business directories as the GNWT collects new procurement data. With opportunities available through both territorial and federal governments, year-end planning can help businesses position themselves for future contracts.
The Government of the Northwest Territories ("GNWT") spends approximately $260 million a year on procurement contracts, creating substantial economic opportunities across the Northwest Territories ("NWT"). The months before the GNWT's March 31 fiscal year-end are a good time for vendors to get their affairs in order and position for the coming year’s requests for proposals.
The following measures can help position your business to compete for GNWT opportunities in the year ahead.
Confirm Your BIP Registration Is Current
The GNWT's Business Incentive Policy ("BIP") helps NWT businesses that supply goods or provide services compete with out-of-territory competitors that do not face the higher costs of operating in the NWT. For qualifying businesses, the BIP applies a bid adjustment that reduces a tender or proposal bid solely for ranking purposes. Depending on the contract's value, the adjustment may be up to 15% NWT and 5% local for contracts up to $1 million. For contracts over $1 million, it is 15% NWT and 5% local on the first $1 million, and 1.5% NWT and 0.5% local on the remainder.
To be eligible for registration, a business generally must:
comply with legal requirements for carrying on business in the NWT;
keep a year-round place of business in the NWT, with a physical address used mainly to run the business (this can be part of a home);
be subject to NWT income tax;
hold a current municipal or GNWT business licence (and, if it is an NWT supplier, be open to the public and keep inventory for sale); and
be majority-owned by NWT Residents. For a corporation (NWT or CBCA) or a co-operative, this means at least 51% of the voting shares are owned by NWT Residents; for a partnership, the majority interest is held by NWT Residents or other BIP-eligible businesses; and for a sole proprietorship, the owner is an NWT Resident.
To apply, complete the application available on the Industry, Tourism and Investment ("ITI") website and submit it, with the required documents, to your regional ITI office for review and approval.
Required documents may include:
proof of registration with the NWT Corporate Registries;
a certificate of compliance;
an NWT business licence;
proof of NWT property ownership or a lease;
a share register; and
proof of NWT residency.
Know Which Threshold Your Work Falls Into
Vendors should understand the procurement thresholds that apply to their offerings. Contracts valued at $25,000 or more are generally posted on the GNWT Contract Event Opportunities website, and businesses pursuing contracts above the applicable thresholds should monitor these postings closely, as a missed posting may mean a missed opportunity.
The GNWT dollar value thresholds for contracts requiring a competitive, public procurement process are as follows:
$25,000 for general goods and services;
$50,000 for professional services (services provided by a person holding a professional designation or certification under a legislated profession in the NWT); and
$100,000 for architectural and engineering services.
Ensure Performance
When evaluating a tender, a contracting authority considers only responsive tenders from responsible bidders with the capability, integrity, and reliability to fulfill all contractual obligations. Contractors that fail to meet those obligations may be deemed ineligible for future opportunities. Because past performance may factor into bid evaluations, vendors should prioritize completing existing contracts before pursuing new opportunities.
Monitor Developments in Procurement
Vendors should monitor recent developments. For example, the GNWT has adopted a definition of an "NWT Indigenous Business," which must be registered under the GNWT’s BIP and must also be either:
listed in the federal Indigenous Business Directory; or
listed in a publicly available business registry maintained by an NWT Modern Treaty Partner.
Currently, the definition is used only to improve procurement data and transparency and does not affect contract awards. While the GNWT has paused its broader work toward a dedicated Indigenous procurement policy, the data collected and publicly reported beginning in the 2026–27 fiscal year may still inform future measures and could ultimately be incorporated into procurement policy. Yukon and Nunavut already have policies that advantage Indigenous-owned businesses. Accordingly, Indigenous-owned businesses would be well advised to register on the relevant registries now.
Consider Federal Procurement Opportunities
The GNWT is not the only source of procurement opportunities. The federal government procures a significant volume of goods and services each year, and many of those contracts are open to NWT businesses. Activity in the North is also high: in March 2026, the federal government announced a plan backed by more than $40 billion to defend, build, and transform Canada's Arctic and Northern region.
How We Can Help
If you are pursuing northern procurement opportunities and would like advice on year-end planning, please contact Breton Gaunt or any member of Field Law's Business Law Group.
