Ontario Unveils New Procurement Rules to Boost Local Businesses
In a bid to revitalize the local economy and empower Ontario-based businesses, the provincial government has announced a groundbreaking regulation under the Building Ontario Businesses Initiative Act, 2022 (BOBIA). The new rules, unveiled by the Ministry of Economic Development, Job Creation and Trade, prioritize local companies when awarding procurement contracts from public sector entities such as hospitals, school boards, and universities.
With an emphasis on leveling the playing field for Ontario businesses, the regulation aims to provide a competitive advantage to homegrown enterprises, spanning diverse sectors from medical supplies in Thunder Bay to fresh produce in London.
Associate Minister of Small Business, Nina Tangri, highlighted the significance of supporting Ontario-made products and innovations, emphasizing their role in promoting economic growth, job creation, and securing the province’s supply chain.
Our government is putting Ontario businesses & entrepreneurs first.
Today, I joined Jamie Wallace @SupplyOntario & @chsltd_ CEO Mike Canzoneri to announce our government’s commitment to supporting Ontario businesses through our Building Ontario Businesses Initiative Act. 1/2 pic.twitter.com/4d2mlAb2Gd
— Nina Tangri (@ninatangri) April 26, 2024
Under the regulation, public sector entities are mandated to give preference to Ontario businesses for procurements below specified thresholds. For goods and services in the Broader Public Sector, the threshold is set at $121,200, while for the Ontario Public Service, it’s $30,300 for goods and $121,200 for services.
The move has been met with applause from industry leaders. Mike Canzoneri, President and CEO of Canadian Hospital Specialities, praised the government’s commitment to reducing barriers and facilitating greater access to public procurement opportunities for Ontario-based companies.
The government anticipates that this initiative will result in the awarding of at least $3 billion in contracts to Ontario businesses through 2026. This injection of funds into the local economy could serve as a significant catalyst for growth and innovation across various sectors.
In response to the announcement, Caroline Mulroney, President of the Treasury Board and Minister of Francophone Affairs, reaffirmed the government’s dedication to supporting Ontario-made products and services, which in turn will protect the supply chain, create jobs, and rebuild the economy.
Effie J. Triantafilopoulos, Member of Provincial Parliament for Oakville North—Burlington and Parliamentary Assistant to the Minister of Economic Development, Job Creation and Trade, hailed the initiative as a milestone in Ontario’s economic recovery, emphasizing its role in fostering a competitive advantage for local industries and ensuring the prosperity and resilience of the province.
James Wallace, CEO of Supply Ontario, emphasized the agency’s commitment to modernizing public procurement in Ontario and its pride in playing a key role in the Building Ontario Businesses Initiative. Wallace highlighted the potential for the initiative to support Ontario businesses in selling more goods and services, creating jobs, and fostering innovation.
Commentary
The unveiling of these new procurement rules marks a significant step forward for Ontario’s economy, particularly in the wake of the challenges posed by the COVID-19 pandemic. By prioritizing local businesses, the government is not only bolstering economic growth but also fostering resilience in the face of future uncertainties.
This initiative has the potential to stimulate job creation, encourage innovation, and strengthen the province’s supply chain. Moreover, it underscores the importance of collaboration between government and industry in driving economic development and ensuring the prosperity of Ontario’s communities.
As these new regulations come into effect, it will be essential to monitor their impact closely. While they hold promise for Ontario businesses, it will be crucial to address any potential challenges and ensure equitable opportunities for all stakeholders involved.
