Ontario’s procurement plan could create opportunities for businesses

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The Ontario government is taking steps to create a Buy Ontario plan.

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Ross Romano, Sault MPP and Minister of Government and Consumer Services, unveiled a plan to strengthen the province’s supply chain security and economic growth through the Building Ontario Businesses Initiative (BOBI).

The plan is designed to reduce barriers and provide companies in Ontario with greater access to public procurement opportunities, helping them sell more goods and services, create jobs in their local communities and recover from the economic effects of the COVID-19 pandemic.

The Ontario government has passed the Building Ontario Businesses Initiative Act, which mandates public sector entities to give Ontario businesses preference when conducting procurement’s for goods and services under a specified threshold amount. This legislative change will see the government targeting to spend at least $3 billion in contracts awarded to Ontario businesses annually by 2026, further creating immense economic opportunity for Ontarians.

“The Building Ontario Businesses Initiative will level the playing field for Ontario businesses vying to support our province’s procurement needs and will ensure they are able to compete with overseas businesses,” Romano said in a press release. “By harnessing our immense buying power, BOBI will allow our government to build our businesses in every corner of our province and support new jobs for our workers. We are investing in our people and unlocking our true economic potential.”

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Vic Fedeli, Minister of Economic Development, Job Creation and Trade, said the plan will ensure that local businesses can compete by increasing capacity and strengthening the province’s supply chain, ultimately supporting businesses, people and families.

Sault Ste. Marie Chamber of Commerce CEO Rory Ring said that it is important that the Ontario government support and recognize the challenges businesses have faced.

He called the government’s plan a positive action, especially with the stress that the supply chains have, and are, currently facing.

“The problem is there is a lack of representation on the senior management team and on the board with single sourcing. We need to make sure Northern Ontario is well represented and procurement can occur from across Northern Ontario and that transportation facts are factored in and allow the North to be competitive,” Ring said.

The price difference in transportation costs between the north and south can be dramatic and affect the true competitiveness of costs, he said.

Ring said he believes there are great opportunities for the health sector with the government’s new procurement plan.

“I think Northern Ontario has some strong opportunities and this could be a positive outcome for a variety of businesses, including those in the manufacturing supply chain,” Ring said.

But opportunities also exist in other areas including for local engineering companies, design companies and manufacturing.

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The decarbonization and climate change efforts also create other opportunities for Northern Ontario, including for instance with solar panels, 98 per cent which are sourced offshore but could be created here with the likes of Heliene Inc., which has already proven itself in the market.

“Everything the government buys, its buys with our tax dollars. It’s our money and that has to be recognized and we have to ensure that Ontario businesses are fairly considered, especially when they’re creating job and a big part of our local economy,” Ring said.

Romano said these changes will apply to the province’s overall procurements, which amount to $29 billion in goods and services annually across all public sector organizations. This immense buying power will be leveraged to help Ontario businesses in the technology and manufacturing sectors grow, create good paying jobs for Ontario workers, and secure domestic supply for critical goods required in times of crisis.