Buy Ontario Act (Public Sector Procurement), 2025

The Buy Ontario Act (Public Sector Procurement), 2025 (S.O. 2025, c. 27, Sched. 1) is the Ontario statute that authorizes Management Board of Cabinet to issue procurement directives giving preference to Ontario and Canadian goods and services across the public sector. Its first major instrument, the Buy Ontario Procurement Directive, has applied to new procurements since April 13, 2026.

What it is

The Act's stated purpose is to regulate public sector procurement on principles of integrity and value-for-money while leveraging procurement to promote and build Ontario's economy and safeguard its supply chain. Directives issued under it can require preference for Ontario or Canadian goods and services, limit who may participate in procurements, set vendor performance standards, and impose reporting and compliance measures. Ontario also prescribed municipalities, local boards and municipal services corporations as public sector entities under the Act, with a separate Municipal Buy Ontario Procurement Directive.

What the Directive requires

The Buy Ontario Procurement Directive applies to all ministries, provincial agencies, OPG and IESO, and designated broader public sector organizations (hospitals, school boards, universities and colleges among them). It consolidates the Building Ontario Businesses Initiative (BOBI) and the Procurement Restriction Policy into one directive and adds two strategic categories: fleet vehicles and capital infrastructure. The BOBI value tiers direct preference to Ontario businesses below the low thresholds ($34,700 goods / $139,000 services for government entities; $139,000 for BPS goods and services), Canadian businesses in the middle band, and — at or above $368,000 — businesses of Ontario's trading partners, with weighted domestic evaluation criteria; procurements of $50 million or more in specified sectors must include an Industrial Regional and Technology Benefit (IRTB) requirement. The Procurement Restriction Policy restricts U.S. businesses — those with headquarters or main office in the U.S. and fewer than 250 full-time employees in Canada — from Ontario public sector procurements at any value, except where a VOR or other available arrangement is used.

What it means for vendors

Eligibility now turns on where you are headquartered and staffed, and how much of your production is Ontario-based: an Ontario business is one with its headquarters or main office in Ontario, or at least 250 full-time employees in Ontario, and an Ontario-made good is one wholly manufactured or originating in Ontario, or with at least 51% of total direct production costs incurred in Ontario. U.S.-headquartered bidders with a substantial Canadian workforce can still qualify. Reporting now runs through Supply Ontario and the responsible ministries, and the requirements apply to procurements not yet issued or posted as each section takes effect.

Common questions

Does this override the trade agreements?

No — the Directive states it does not prevail over legislation, and its thresholds are updated in alignment with Ontario's trade commitments; the one exception is the Procurement Restriction Policy, whose requirements prevail over the rest of the Directive in a conflict.

Are emergencies covered?

No. The Directive does not apply to procurements addressing urgent and unforeseen situations such as emergencies, and it states there are no exemptions.

Related definitions

BPS Procurement Directive · Vendor of record · Social procurement · Canadian content eligibility