The new regulation enshrines in law that Ontario’s public sector — including hospitals, schools, colleges and universities — give preference to Ontario businesses when conducting procurements for goods and services such as acquiring school supplies or food for cafeterias.

“Ontario businesses should benefit from the investments of its own government,” said Minister Caroline Mulroney, President of the Treasury Board. “Prioritizing Ontario-made products and services will help protect the supply chain, create good paying jobs and rebuild the province’s economy.”

This 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.

“As the underlying engine of Ontario’s economy, local businesses play a vital role in creating jobs, and positioning the province as a prime jurisdiction for investment attraction,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “Through the adoption of this new regulation, our government is supporting Ontario-made innovation and taking another step towards ensuring a strong and resilient economy for future generations.”

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.

The government anticipates that at least $3 billion in contract awards will be targeted to Ontario businesses through to 2026.

Quick facts

• Building Ontario Businesses Initiative Act, 2022
• Doing Business with the Government of Ontario
• Building Ontario Businesses Initiative
• Broader Public Service Procurement Directive