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1. Introduction: Leveraging procurement under the Buy Ontario Act
The Buy Ontario Act (Public Sector Procurement), 2025, establishes a framework that allows the Ontario provincial government to use public sector procurement to promote economic development, support Ontario-based businesses and strengthen domestic supply chains by directing public spending toward Ontario and Canadian-made goods and services. The Act explicitly states that its purpose is to "promote, protect and build Ontario's economy and businesses and safeguard its supply chain." With this objective in mind, on January 16, 2026, the Ministry of Public Business Service Delivery and Procurement (MPBSDP) launched a call for public feedback regarding a number of initiatives, including proposed directives requiring public sector entities to give preference to Ontario-made goods and services when procuring (i) light duty fleet vehicles; and (ii) major goods and services in capital infrastructure and construction projects.1
The proposed Buy Ontario policies under the Buy Ontario Act, proposed in the backdrop of the federal Buy Canadian Procurement Policy Framework, are open for public comments until March 2, 2026. Their potential implications are outlined below.
2. Buy Ontario policies for light-duty fleet vehicles
A new Made‑In‑Ontario Fleet Vehicle Procurement Policy for light‑duty passenger vehicles, aimed at reinforcing Ontario's automotive manufacturing base, has been proposed as part of the Buy Ontario policies. Under this proposal, public sector organizations would be expected to prioritize vehicles built in Ontario when renewing or expanding their fleets. The policy establishes a hierarchy of preference: public entities would first be required to acquire vehicles manufactured in the province. If no suitable Ontario‑made option is available, or if operational needs cannot reasonably be met through Ontario‑assembled models, organizations would then be directed to source from automakers that maintain production operations in Ontario. Only in situations where neither of these pathways is feasible would entities be permitted to pursue alternative procurement options, provided that the chosen approach remains consistent with the proposed policy's intent.2 By requiring public bodies to prioritize vehicles built in Ontario, or manufactured by companies with an active production presence in the province, the policy aims to direct government fleet spending toward domestic producers, support local supply chains, and increase economic resilience during a period of economic uncertainty.3
3. Construction procurement and municipal infrastructure
The MPBSDP is also considering an expanded procurement policy for major goods and services used in capital infrastructure and construction projects. The intent of this initiative is to encourage suppliers involved in delivering large public works to rely on Ontario‑made and Canadian‑made inputs wherever feasible, thereby reinforcing key provincial industries and supporting broader economic objectives. At present, the province's direction in this area applies only to ministries and provincial agencies. Ontario is now proposing to broaden the scope of this guidance so that it extends to designated broader public sector organizations, as well as to municipalities and their local boards, thereby amplifying the economic impact of public infrastructure spending.4
4. Expected impacts of the proposed measures
Although the provincial government has not yet finalized the detailed rules around how the new Buy Ontario policies will apply, they can be expected to create more demand for Ontario‑made goods and services, which, in turn, could help reinforce local supply chains and support domestic producers facing trade pressures. At the same time, public sector organizations will almost certainly face added administrative work as they adjust to the new framework, ranging from preparing revised procurement documents to applying updated evaluation criteria and confirming whether suppliers meet domestic‑content expectations. Businesses bidding on these opportunities may also need to devote extra time to assembling documentation, such as evidence of eligibility or supply‑chain plans, before they can participate effectively in procurement processes governed by the new rules.5
5. Comparative approaches to domestic procurement across Canada
Ontario's Buy Ontario Act is an enabling statute that authorizes the Management Board of Cabinet to issue binding directives requiring public sector entities to give preference to Ontario or Canadian goods and services, extend requirements through supply-chain managers and enforce compliance (including withholding funds), with the repeal of the Building Ontario Businesses Initiative Act (BOBI)6 to follow on the proclamation.7
Québec, by contrast, has adopted an explicit, time‑bound Government Strategy for Public Procurement that prioritizes Québec procurement and sets measurable targets through 2026. The Stratégie gouvernementale des marchés publiques covers four pillars: Québec purchases, responsible acquisitions, innovation and accessibility for SMEs.8 This strategy is paired with legislative or regulatory tools to permit reserved markets for small businesses, a possible 10% preference based on Québec or Canadian value added when contracts involve an expenditure exceeding the threshold defined by the Canadian Free Trade Agreement, but below the threshold for application of the Canada-European Union Comprehensive Economic and Trade Agreement, and requirements for Québec or Canadian goods and services below certain trade thresholds.9
British Columbia does not operate a formal geographic preference regime. Procurement is governed by the Core Policy and Procedures Manual and related materials emphasizing fairness, transparency, non‑discrimination, sustainability, Indigenous reconciliation and community benefits within a decentralized, principles‑based framework, rather than "buy‑local" rules. 10
At the federal level, the Government of Canada has implemented the Buy Canadian Procurement Policy Framework and companion policies that (a) require Canadian‑produced steel, aluminum and wood in large construction or defence projects at or above CA$25 million when at least CA$250,000 of such materials are involved and domestic supply exists; and (b) prioritize Canadian suppliers and Canadian value‑added in strategic procurements CA$25 million and up (phasing down to CA$5 million and up by spring 2026).11
6. Conclusion: Expanding the role of procurement in economic policy
The targeted Buy Ontario policies for light-duty fleet vehicles and construction procurement represent a significant evolution in Ontario's public procurement strategy. Ontario is positioning public spending as a central mechanism for supporting local businesses, strengthening domestic supply chains and enhancing economic resilience. If implemented, these measures would embed Buy Ontario principles across a substantial share of public sector procurement in Ontario and mark a shift toward a more coordinated, economy-focused approach to purchasing at both the provincial and municipal levels.
Footnotes
1 Ontario, Buy Ontario Act (Public Sector Procurement), SO 2025, c 27, Sched 1
2 Ibid
3 Ibid, (see "supporting documents")
4 Ibid
5 Ibid
6 Building Ontario Businesses Initiative Act, S.O. 2022, c. 2, Sched. 2
7 Legislative Assembly of Ontario, Bill 72, Buy Ontario Act, 2025, 1st Sess, 44th Leg, Ontario
8 Québec, Secretariat of the Conseil du trésor, L'achat québécois propulsé par les marchés publics (December 20, 2024)
9 Gouvernement du Québec, Priorité à l'achat québécois
10 Government of British Columbia, CPPM Policy Chapter 6: Procurement; Government of British Columbia, BC Procurement Plan 2024
11 Treasury Board of Canada Secretariat, Contracting Policy Notice 2025‑7: Buy Canadian Policies and associated amendments to the Canadian International Trade Tribunal Inquiry Regulations and Directive on the Management of Procurement (17 December 2025); Public Services and Procurement Canada, Government of Canada implements Buy Canadian Policy to strengthen Canada's economy and support homegrown industries (16 December 2025)
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