British Columbia’s public sector operates within a strict regulatory framework regarding data management and privacy compliance. For professional services firms, such as software development companies, business consultants, engineering firms, and accountants, securing government contracts often requires adherence to stringent compliance standards. However, for firms that do not have a great deal of experience navigating these standards, successfully submitting and winning a public sector request for proposal (RFP) can present a significant learning curve.
This article breaks down the most common compliance challenges professional services firms face when engaging with the BC public sector data compliance framework. It provides some solutions that can shorten the learning curve.
Multiple laws govern BC’s public sector data, most notably the Freedom of Information and Protection of Privacy Act (FOIPPA). This legislation mandates how public bodies collect, use, disclose, and store personal information. Private sector firms working with BC’s public sector must meet the data residency requirements, which mandate that public sector data must be stored and accessed within Canada unless granted an exemption. Firms must also implement appropriate administrative, technical, and physical safeguards to protect public data. Access control measures should follow the principle of least privilege, limiting access to only those who require it. Additionally, data retention and disposal policies must align with predefined schedules, ensuring secure disposal of no longer needed data.
For professional services firms aiming to sell to government entities, ensuring compliance with these BC public sector data compliance regulations is critical to securing contracts and maintaining trust.
Professional services firms often use cloud-based data processing, development, and consulting platforms. However, data stored outside Canada can lead to conflicts with BC’s strict public sector data residency laws (FOIPPA, PIPEDA). This is particularly true when using hyperscalers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.
Client data stored outside of Canada can result in compliance violations. This is especially serious if the data involves legal documents or personally identifiable information (PII). For example, receiving a municipality’s staff list with qualifying information like home addresses or photographs falls under your confidentiality obligations. You are at risk if you do not have Canadian tenancy for this PII.
Solution: Choose cloud providers that offer Canadian tenancy to ensure you align with data residency regulations. You should also assess whether exemptions apply in specific cases and develop a strategy to handle storage needs while remaining compliant.
Storing and transmitting sensitive government data increases exposure to cyber threats such as unauthorized access, data breaches, and ransomware. Rather than using encryption, attackers now often steal PII and threaten to leak it. This results in operational disruption and significant recovery costs, and brand reputation risk from data breaches is more pronounced than ever before.
In 2024, cyber attackers stole files from London Drugs, prompting the organization to shut down all 79 locations across Canada. While this resulted in significant losses due to closures, the company took a major blow to their reputation because of the leaked files.
Solution: While you should follow established frameworks like ISO 27001 or NIST 800-53, you can start with smaller, more cost-efficient steps to mitigate big risks: implement encryption, insist on multi-factor authentication (MFA), and invest in phishing awareness training for the whole team. We also recommend that you work with a professional to develop an incident response plan that ensures your business can react swiftly in the case of security breaches.
Outsourcing to vendors or subcontractors introduces risks if they don’t follow the same data compliance practices. Many breaches originate from third-party failures, notably in healthcare, education, and legal sectors.
In late 2024, unauthorized access to PowerSchool, a web-based student management system, through a customer support portal resulted in the loss of personal and medical information in school boards across Canada. This affected decades of student and staff information and is an unfortunate example of how a third-party vendor breach can majorly impact PII security.
Solution: To ensure compliance, businesses should require third-party vendors to follow the same security and compliance protocols as internal teams. Working with a consultant to establish vendor compliance management programs can streamline this process, ensuring subcontractors meet necessary security standards. You also want to look for certifications, such as SOC2 Type II, that show their commitment to security. Regular vendor audits, conducted with oversight, can further confirm adherence to compliance requirements.
Many professional services firms struggle to determine how long to keep data, so they retain it indefinitely. However, unnecessary retention can create compliance, privacy, and legal risks. Under Principle 5 of PIPEDA, organizations are required to destroy, erase, or anonymize PII once it is no longer needed to fulfill the purpose for which it was collected.
The risks of retaining data or not keeping it long enough will vary across industries and from business to business. The BC Human Rights Tribunal has a strict one-year statute of limitations for filing discrimination or harassment complaints; best practice is that BC organizations keep past employee records not just for this one-year period, but for four years, as this is the current backlog time for processing complaints. After this time has passed, you can securely dispose of the records rather than continue storing them.
Solution: Organizations must develop guidelines and implement procedures around the secure destruction of personal information. Implementing automated data retention policies that align with BC government guidelines ensures consistency and regulatory adherence. Engaging a Managed Services Provider (MSP) to manage data lifecycle policies and oversee secure disposal can provide additional assurance. Businesses should also regularly review and update data retention schedules to remain compliant with evolving government regulations.
Under FIPPA, firms working with public institutions have a duty to respond to FOI requests. Organizations should be prepared to respond efficiently and in accordance with BC public sector data compliance policies. Mismanagement can result in unintentional disclosure or failure to meet legal obligations.
FOI modernization initiatives, such as automation and data classification, streamline the process of responding to FOI requests, reducing processing time and the operational costs that come with manual responses. The Office of the Information and Privacy Commissioner for British Columbia (OIPC BC) released an updated guidance document for public bodies in February 2025 that outlines recommended proactive disclosure steps, such as assigning records to categories. This record categorization is the first step in creating an internal data classification system you can use to automate FOI request responses.
Solution: Maintaining organized and accessible records facilitates efficient FOI request fulfillment. Work with an MSP to implement data classification strategies and create an automated response system. In addition, train employees on FOI request procedures and the benefits of proactively disclosing records when applicable.
Professional services firms looking to engage with BC’s public sector should create a clear compliance plan. Internally, a compliance plan helps establish clear guidelines for employees, ensuring everyone understands their role in maintaining data security and regulatory adherence. It also provides a framework for consistency, reducing the risk of errors or mismanagement when handling sensitive public sector data.
The first step in developing a compliance plan is to conduct a compliance gap analysis to assess where existing practices may fall short of BC public sector requirements. This includes reviewing data handling policies, ensuring alignment with FIPPA regulations, and identifying areas where additional security measures may be necessary. Firms should establish a data governance framework that outlines responsibilities, data access protocols, and risk mitigation strategies.
Ensuring the security of public sector data is a fundamental part of compliance. Professional services firms should implement security measures such as data loss prevention (DLP) tools to monitor and restrict unauthorized data movement, identity and access management (IAM) systems to enforce strict access controls, and security information and event management (SIEM) solutions to detect and respond to security threats in real-time. Establishing regular security audits and penetration testing can help identify vulnerabilities and ensure ongoing compliance.
Appointing a Compliance Officer or creating an internal compliance team for firms without a dedicated compliance lead can help maintain regulatory adherence. This role involves staying updated on regulatory changes, enforcing compliance policies, and conducting regular audits to assess risk. Having a designated compliance lead also provides a point of contact for public sector partners and procurement teams.
Public sector compliance requirements evolve over time, so firms should establish a continuous monitoring and improvement system. This can include setting up automated compliance tracking, conducting quarterly risk assessments, and updating policies in response to regulatory changes. Establishing incident response protocols ensures that firms can react quickly and effectively in the event of a data breach or security lapse while maintaining transparency with public sector partners.
Building strong relationships with public sector partners and procurement teams is essential for maintaining trust and demonstrating compliance readiness. Firms should develop clear documentation of their compliance policies and security practices, ensuring they are prepared to provide this information when submitting proposals or responding to audits. Engaging in ongoing dialogue with government stakeholders and staying informed about evolving security and compliance expectations can help firms remain competitive in the public sector space.
Working within BC public sector data compliance regulations is essential for professional services firms looking to partner with public organizations. Firms can ensure they meet public sector requirements while maintaining data integrity and security by creating a structured compliance plan that includes security best practices, data governance policies, and continuous monitoring. A proactive approach to compliance will reduce risks, enhance credibility, and increase opportunities for securing government contracts. Reach out to the MYRA team if you have questions about public sector compliance or need help creating your compliance plan.