Proposed Regulations under the Proposed Fairness in Procurement Act, 2018 (Bill 194)
Regulation - LGIC
Bill or Act:
Bill 194, Fairness in Procurement Act
Summary of Decision:
Effective April 1, 2018, the Suppliers from New York regulation under the Fairness in Procurement Act, 2018 came into effect to respond proportionally to the restrictions set out in the New York Buy American Act.
The new regulation applies to Ontario government entities procuring for construction, reconstruction, alteration, repair, maintenance or improvement of surface roads and bridges, where the value of the contract is over $1 million (USD). Government entities are ministries, public bodies (provincial agencies), the Independent Electricity System Operator (IESO) and the Ontario Power Generation (OPG) and each of OPG's subsidiaries.
Should a supplier from New York State be the successful bidder or chosen supplier, the procurement contract must include a provision restricting the supplier from using any structural iron fabricated in New York State that would be permanently incorporated into any surface road or bridge.
The Suppliers from New York regulation:
• Does not apply to any contract signed prior to April 1, 2018.
• Does not apply to any procurement contract resulting from a procurement process initiated (e.g. RFB/RFQ issued or VOR) before April 1, 2018.
• Contains a process for Ontario government entities to obtain exemptions from the requirements of the regulation.
The intent is that the responsive regulation would be revoked if New York State repeals its "Buy American" legislation, or provides Ontario suppliers or products with an exemption from the application of the legislation.
Due to positive advocacy efforts in Texas, Ontario has not created a regulation in response to the Texas Buy American Act at this time.
Analysis of Regulatory Impact:
The proposed regulations are not anticipated to impose any new administrative costs for Ontario business.
March 5, 2018
Summary of Proposal:
If passed, Bill 194, the proposed Fairness in Procurement Act, 2018, would permit the Lieutenant-Governor in Council to make regulations governing procurement practices of Ontario government and/or broader public sector entities. These regulations would be in response to legislation or policies implemented by sub-national (i.e. state or local) American jurisdictions that, in the opinion of the President of Treasury Board, may inhibit or prevent Ontario suppliers from participating or succeeding in public procurement processes initiated by those jurisdictions. If the bill is passed, the government intends to bring forward two new proposed regulations to respond to the Buy American legislation enacted by the states of New York and Texas - one responding to each of the US jurisdictions.
The Government of Ontario values open, transparent and competitive procurement. The proposed regulations are intended to respond proportionally to the restrictions set out in the New York and Texas legislation. The proposed regulations are intended to impose certain measures on government entities entering into procurement contracts with suppliers from the state of New York and with suppliers from state of Texas.
Treasury Board Secretariat
Corporate Policy and Accountability Branch
77 Wellesley Street West, 13th Floor
April 1, 2018