Federal procurement rules are requirements that apply when municipalities use federal funding for projects. These rules ensure public money is spent properly through competitive processes that achieve value for money, prevent corruption, and support policy objectives. When federal infrastructure funding flows to municipal projects, the funding agreement typically requires compliance with federal procurement standards: open competition, fair evaluation criteria, conflict of interest prevention, and sometimes requirements for union labour, Indigenous participation, or Canadian content. Projects must also meet environmental and accessibility standards. These requirements can add complexity to municipal procurement processes and may limit flexibility in how projects are delivered. However, they provide accountability for federal investment and help ensure standardized outcomes. Understanding federal procurement requirements is essential when planning federally-funded projects to avoid compliance issues that could jeopardize funding.