New regulation from Ont. business act tries to give companies more opportunities to compete

BURLINGTON — A new regulation under the Building Ontario Businesses Initiative Act, 2022 (BOBIA) will give Ontario companies more opportunities to compete for procurement contracts from public sector entities like hospitals, school boards and universities.

Whether it is a medical supply company in Thunder Bay or a fresh produce supplier in London, several Ontario businesses and industries will now reportedly have a competitive advantage that will help bolster their success.

“Ontario small businesses are the backbone of our economy, employing more than two million people,” said Nina Tangri, Associate Minister of Small Business. “By leveling the playing field for local businesses, the government is supporting Ontario-made products and innovations that will promote economic growth, create new jobs and secure the province’s supply chain.”

Under the regulation, public sector entities are now required to give preference to Ontario businesses when conducting procurements below the specified thresholds. This ensures compliance with the province’s trade obligations.The new rules apply to procurements below a $121,200 threshold 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.

“We applaud the government for making a commitment to support Ontario businesses by creating the Building Ontario Businesses Initiative”, said Mike Canzoneri, President and CEO of Canadian Hospital Specialities. “We look forward to working with Supply Ontario to reduce long standing barriers so Ontario based companies can benefit from greater access to public procurement opportunities, grow our businesses and create more jobs.”

The government anticipates that at least $3 billion in contracts will be awarded to Ontario businesses through to 2026.