Implementation of New Municipal Requirements under the Buy Ontario Act, 2025

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The decision

2026-05-20 · Toronto City Council · amended

As filed

City Council on May 20 and 21, 2026, adopted the following: 1. City Council amend Toronto Municipal Code Chapter 195, Procurement, as set out in Attachment 1 to the report (May 12, 2026) from the Chief Financial Officer and Treasurer and the Chief Procurement Officer, effective May 25, 2026 (the "Effective Date"), with changes to prefer Ontario-Made Goods and Services, followed by Canadian-Made Goods and Services, as well as to purchase or lease Ontario-Made Vehicles and vehicles from Ontario Vehicle Producers, as applicable, for City procurement as required by the Buy Ontario Act (Public Sector Procurement), 2025, and authorize the Chief Procurement Officer to take necessary actions to implement the changes.

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2. City Council authorize the Chief Procurement Officer and/or their delegates, as appropriate, to participate in consultation opportunities related to the Act and any regulations or directives under it by making oral and/or written submissions to any groups or bodies, including the Ontario Legislature and Ontario's Regulatory Registry, on such issues as required to protect the interests of the City. 3. City Council request the Province of Ontario to provide municipalities with a six-month implementation lead time for any future directives or related regulatory changes, allowing municipalities to conduct impact analysis; update policies, procedures and tools; engage and inform suppliers; update solicitation templates and guides; and train staff. 4. City Council request the Chief Procurement Officer to work with other municipalities, the construction industry, and governing bodies and organizations to develop standardized approaches, master specifications, processes and forms to better support municipalities and the industry to comply with new procurement directives as they apply to infrastructure construction. 5. City Council request the Province of Ontario to expand the development of Provincial vendors of record arrangements that may support municipalities in complying with the new procurement directives and maximize economies of scale. 6. City Council request the Province of Ontario to include in the Buy Ontario Act, or its supporting regulations and policies, the provision of additional administrative funding for municipalities to cover the staff resources required to implement, administer and develop automated tools, and monitor compliance with the new provincial legislation. 7. City Council request the Province of Ontario to provide a funding formula to cover increased Capital Infrastructure project costs resulting from the application of Buy Ontario Act requirements, including instances where a higher‑priced bid is selected due to evaluation advantages associated with the highest scoring Domestic Supply Chain Plan. 8. City Council forward this item to the Ontario Big City Mayor's Caucus and the Association of Municipalities of Ontario. 9. City Council request the City Manager to report to City Council in June 2027 with a review and summary of impacts to procurement decisions and incremental costs above the current baseline conditions resulting from the implementation of the new Buy Ontario Act procurement directives. 10. City Council direct that Confidential Attachment 1 to the supplementary report (May 13, 2026) from the City Solicitor remain confidential at the discretion of the City Solicitor, as it contains advice that is subject to solicitor-client privilege and contains information regarding potential litigation. Confidential Attachment 1 to the supplementary report (May 13, 2026) from the City Solicitor remains confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as it contains advice that is subject to solicitor-client privilege and contains information regarding potential litigation. Confidential Attachment 1 to the supplementary report (May 13, 2026) from the City Solicitor will be made public at the discretion of the City Solicitor.

On the agenda

As the city filed it

The Buy Ontario Act (Public Sector Procurement), 2025, establishes a new provincial framework intended to strengthen Ontario's economy by prioritizing Ontario‑ and Canadian‑made goods and services in public sector procurement. Effective April 13, 2026, municipalities and their local boards and municipal services corporations ("Municipal Sector Entities") have been prescribed by regulation as Public Sector Entities under the Act.

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Municipal Sector Entities are required to comply with procurement directives issued by the Management Board of Cabinet. This report provides an overview of the Act and its associated Municipal Buy Ontario Procurement Directive, and outlines implications and implementation plans to bring the City into compliance. In particular, the report highlights specified requirements applicable to the procurement of light‑duty fleet vehicles and capital infrastructure projects, including anticipated operational and financial impacts. For Fleet Vehicles, the Directive includes a requirement to purchase Made-in-Ontario Vehicles, followed by vehicles from Ontario Vehicle Producers (those with at least 1,500 Ontario jobs), subject to availability and operational feasibility. For Capital Infrastructure, which includes Construction as defined in the Directive, the Directive introduces a new obligation for suppliers to disclose whether Major Goods and Services are from Ontario or Canada through the required submission of Domestic Supply Chain Plans as part of the procurement process, along with prescribed bid evaluation approaches that either prefer Ontario-Made Goods and Services and Canadian-Made Goods and Services or a commitment approach to achieving the same. While implementation of the Act presents opportunities to leverage municipal purchasing power to further support Ontario and Canadian suppliers, it also represents a major operational and governance shift for the City of Toronto, requiring supplier engagement, new procedures and internal training. This report seeks Council authority to implement these new legislative requirements and engage with the Government of Ontario as needed to represent the interests of the City.

Staff recommended

The Chief Financial Officer and Treasurer and the Chief Procurement Officer recommend that: 1. City Council amend Municipal Code Chapter 195, Procurement, as set out in Attachment 1 to this report, effective May 25, 2026 (the "Effective Date"), with changes to prefer Ontario-Made Goods and Services, followed by Canadian-Made Goods and Services, as well as to purchase or lease Ontario-Made Vehicles and vehicles from Ontario Vehicle Producers, as applicable, for City procurement as required by the Buy Ontario Act (Public Sector Procurement), 2025, and authorize the Chief Procurement Officer to take necessary actions to implement the changes.

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