AMO and construction industry partners call for practical improvements to Buy Ontario procurement rules
AMO has joined with key infrastructure construction partners to ask the province for practical improvements to the Buy Ontario procurement framework.
Municipalities already make most of their purchases from Ontario and Canadian businesses, but AMO has heard from our members that the Buy Ontario Act requirements have introduced red tape that makes it more difficult for local companies to comply while increasing the cost of major infrastructure projects. In a joint letter to the province, AMO and its partners outlined four recommendations:
- Provide clearer guidance on how to verify domestic content, evaluate and score bids, and balance domestic content requirements with value for tax dollars.
- Establish a provincial “Buy Ontario Qualified” pre-qualification framework so Ontario businesses have the option to prove compliance only once, and municipalities can rely on a provincial attestation.
- Reduce administrative burden by providing exemptions for low-value projects with low economic impacts.
- Conduct a market assessment of municipal demand and industry capacity to identify opportunities to invest in expanding domestic supply chains.
These recommendations are intended to make Buy Ontario rules easier to follow, reduce costs for municipalities, and help more Ontario and Canada based businesses compete for municipal contracts.
Our joint advocacy follows a letter sent by Minister Flack to municipalities expressing the provincial government’s expectation that municipalities comply with Buy Ontario policies, and maximize the use of domestic goods and services during procurement. The letter indicates that in cases of non-compliance, the government will reconsider provincial funding made available to municipalities.
Minister Flack’s letter also included a reference to the Building Ontario Business Initiative (BOBI) being expanded to municipalities. BOBI rules were consolidated into the provincial Buy Ontario Procurement Directive, and require provincial ministries, agencies, and public sector organizations to prioritize Ontario businesses where possible. The rules do not currently apply to municipalities. AMO is seeking clarity from the province on when and how BOBI may be extended to municipalities in the future and will provide more information as it becomes available.
