Public Sector
The part of the economy run by government and publicly funded bodies, including the broader public sector of schools, hospitals, and agencies, that buys goods and services through public procurement.
Definition
The public sector is the part of the economy owned or funded by government and accountable to it, as distinct from the private sector of businesses and the voluntary or non-profit sector. In Canada it spans the three orders of government (federal, provincial and territorial, and municipal) and the broader public sector, often abbreviated BPS, which includes school boards, public colleges and universities, hospitals and health authorities, Crown corporations, and other publicly funded organizations. These are the buyers behind public procurement: when they need cleaning, facilities, or other services, they are generally required to acquire them through open, competitive processes.
How it works in Canadian procurement
Public-sector buyers operate under procurement rules and trade agreements that private buyers do not, because they spend public money and must demonstrate fairness, openness, and value. The same building cleaned by a private landlord and by a school board is procured very differently: the private owner can hire any contractor directly, while the school board typically must post a tender, evaluate bids against published criteria, and disclose the award. The broader public sector is the largest source of cleaning and janitorial contracts in Canada by volume, because it operates a vast inventory of offices, schools, hospitals, and public buildings that require ongoing service.
Common confusions
The public sector is not limited to core government departments; the broader public sector of arms-length institutions is much larger and runs its own procurement. A publicly funded body is also not necessarily a Crown corporation, though Crown corporations are part of the public sector; many BPS organizations are independent institutions that receive public funding. Finally, public ownership and public funding are different tests; some organizations are publicly funded but privately governed, and procurement obligations can turn on which test a given rule uses.
Frequently asked questions
The three orders of government plus the broader public sector: school boards, colleges and universities, hospitals and health authorities, Crown corporations, and other publicly funded organizations.
The arms-length, publicly funded institutions outside core government — schools, hospitals, post-secondary, and similar — which run their own procurement and are the largest source of cleaning contracts.
Because it spends public money, it must generally run open competitive procurements with published criteria and disclosed awards, rather than hiring a contractor directly.
Related terms
- Ontario Education Collaborative Marketplace (OECM): OECM (the Ontario Education Collaborative Marketplace) is a non-profit, Ontario-government-funded sourcing organization that runs collaborative procurements for the province's broader public sector, including school boards, colleges, universities, and hospitals.
- What Is a Tender: A tender is a formal invitation by a public-sector buyer for suppliers to submit competitive bids for goods or services.
- Canadian Free Trade Agreement (CFTA): The domestic agreement opening government procurement among the provinces and the federal government above set thresholds.
- Incumbent Vendor: The vendor currently holding the contract being re-tendered.
See Public Sector terms in real Canadian government contracts
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