Beyond the Bid - Part 1

Rethinking Digital Procurement to Support Local Innovation in the Yukon

Beyond the Bid” Series (Post 1): Rethinking Digital Procurement to Support Local Innovation in the Yukon
Beyond the Bid” Series (Post 1): Rethinking Digital Procurement to Support Local Innovation in the Yukon

Software Procurement in the North

Bizont supports digital modernization efforts in the Yukon. And while there’s growing momentum, one challenge that continues to stand out: current procurement practices for digital platforms often unintentionally sideline local tech companies.

This first post in our 3-part series draws from our lived experience as a local vendor in Whitehorse, offering insight into procurement barriers and ideas for how we can move toward a more resilient, locally supported digital economy in the territory.

Procurement Barriers Undermining Local Tech: A Call for Reform

Procurement is one of the most powerful tools governments can use to support economic development. In many areas, such as maintenance and facilities services and construction and trade services, Yukon Government procurement rightly prioritizes local businesses. But when it comes to digital platforms, we’ve consistently seen a different trend emerge.

Instead of creating space for custom-built or locally tailored approaches, most technology tenders are structured in ways that:

  • Use language or state requirements that favour out-of-the-box, pre-built solutions
  • Assume vendors already have deployments in other jurisdictions
  • Require existing licenses or operational frameworks
  • Implicitly exclude generalist firms, even though generalism is a practical strength in a small, adaptive market like the Yukon.
    • For example, in construction and renovation services, a general contractor in the Yukon might handle framing, drywall, basic plumbing, etc – providing a one-stop solution for diverse government and community projects across the territory.

The result? Local tech companies often aren’t able to compete—not due to capability or performance, but because of how the process is scoped before we’re ever invited to participate.

The Data: Where the Money Goes

The insight becomes even more clear when we look at the data.

Using publicly available Yukon procurement data (analyzed via Power BI), we found the highest volume of government contracts in the Yukon are awarded through direct award or invitational processes. These are generally faster and simpler to execute. Great, right?

However, the majority of public spending happens through open tenders. And here’s where the gap widens.

These larger-value, open tenders—especially in digital platform categories—are often written for pre-built, out-of-the-box (OOB) solutions. As a result, local vendors are effectively shut out of the highest-value opportunities because the structure of the RFP predefines the solution.

This means:

  • Local vendors may win smaller projects through direct awards
  • But large-scale digital transformation work (where real investment happens) tends to flow out of the territory

A Broader Pattern Worth Noting

These procurement challenges aren’t unique to the Yukon.

Canada’s Procurement Ombudsman recently released a national report highlighting similar concerns across federal departments, specifically overly complex processes, barriers for small businesses, and a lack of vendor performance tracking. The report called for more outcomes-based procurement that delivers real value for money.

It’s a helpful reminder that the need to modernize procurement, and make space for more inclusive, transparent approaches is being recognized at the highest levels of government.

The Small Vendor Dilemma

Another consideration: for small businesses, responding to an open public tender is a major investment of time and resources. It often includes:

  • Up to dozens of hours spent on technical writing, compliance checks, formatting, and pricing
  • Opportunity cost—time spent on bids is time not spent serving clients or innovating
  • Low odds of success when tenders are scoped with narrow product and licensing requirements that align with large, pre-existing solutions

Meanwhile, large firms with proposal teams and templated solutions can scale bids efficiently, often positioning themselves as “safe” options—even when more thoughtful, local alternatives exist.

This isn’t a level playing field. And it leads to a procurement culture that prioritizes familiarity over innovation, and volume over value.

Why It Matters

If we want to build a future-ready, resilient economy in the Yukon, procurement processes need to evolve to support local capacity—especially in the digital realm.

That doesn’t mean eliminating competition or closing off external vendors. It means creating space for local companies to propose thoughtful, adaptive solutions that are often more aligned with community needs, timelines, and budget realities.

It also means shifting procurement frameworks to reflect the realities of a smaller market—where firms are often multi-skilled, nimble, and capable of delivering strong results without the overhead of large-scale deployments elsewhere.

Looking Forward

We’re not calling for a complete overhaul. But we are calling for a more fair chance to compete – especially on projects that will make the biggest impact on the Yukon’s digital future.

We believe that with small changes to how tenders are scoped and structured, the Yukon can unlock more of the potential that already exists within its borders.

To support this shift, we created Yukon Connect, a platform designed to bring greater transparency to public sector procurement and highlight areas where local businesses are ready and able to contribute.

This is the first post in our Beyond the Bid series, exploring how digital procurement in the North can be more inclusive, effective, and future-ready. In our next posts, we’ll take a closer look at how total cost of ownership (TCO) can lead to smarter investment decisions — and how building transparent, maintainable systems can empower public organizations long after delivery.

Let’s work together to build a digital procurement process that reflects the territory’s values—and invests in its future.

This post was authored by Bethany Ryan and Marcos Castillo, drawing on research, project experience, and conversations.