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New Regulation Levels Playing Field for Ontario Businesses in Public Sector Procurement

TORONTO – Ontario businesses are set to gain a significant boost following the implementation of a new regulation aimed at revolutionizing the public sector procurement process in the province. Effective April 1, 2024, the regulation, introduced under the Building Ontario Businesses Initiative Act, 2022 (BOBIA), mandates that Ontario’s public sector institutions prioritize local businesses when procuring goods and services, ranging from school supplies to cafeteria provisions.

Championed by Minister Caroline Mulroney, President of the Treasury Board, the regulation seeks to ensure that investments made by the Ontario government directly benefit the province’s economy. Minister Mulroney emphasized the importance of safeguarding the supply chain, creating employment opportunities, and kickstarting economic recovery.

“The Act is part of Ontario’s ambitious plan to centralize and modernize public sector procurement. The new regulation, which defines what is considered an Ontario business and what goods and services are covered under the Act, leverages the province’s purchasing power to support Ontario businesses and made-in-Ontario innovations,” said Minister Mulroney.

The move is part of Ontario’s broader strategy to modernize public sector procurement, leveraging the province’s purchasing power to support homegrown businesses and foster innovation. Minister of Economic Development, Job Creation and Trade, Vic Fedeli, underscored the crucial role of local businesses in driving economic growth and job creation, stating that the new regulation aligns with the government’s vision of a resilient economy.

“To ensure Ontario remains compliant with its trade obligations, this regulation applies to procurements below $121,200 for goods and services in the Broader Public Sector. Similarly, for the Ontario Public Service, the thresholds are set at $30,300 for goods and $121,200 for services,” stated Minister Fedeli.

Anticipating significant benefits for Ontario businesses, the government estimates that at least $3 billion in contract awards will be directed to local enterprises by 2026.

In tandem with the regulation, the establishment of Supply Ontario, a provincial agency dedicated to modernizing the procurement process, further highlights the government’s commitment to supporting businesses and driving economic growth.

“Small businesses are the backbone of our economy with over 400,000 businesses operating in our province, employing more than 2 million people. This new regulation will mean more opportunity for every one of our Ontario businesses and a brighter economic future we can all be proud of,” said Nina Tangri, Associate Minister of Small Business.

The new regulation marks a pivotal moment for Ontario businesses, signaling a commitment to fostering local innovation, job creation, and economic prosperity. As businesses across the province gear up to seize these newfound opportunities, the stage is set for a transformative period in Ontario’s economic landscape.

Samantha Deschamps

Samantha Deschamps serves as the Queens Park Reporter, offering insightful coverage of provincial politics with depth and accuracy. With a keen understanding of legislative intricacies, Deschamps provides invaluable perspectives on matters affecting Ontario. For inquiries or feedback, contact Samantha at

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