Procurement Centralization
Frequently Asked Questions (FAQs) for Vendors
We have been working diligently to engage stakeholders as their feedback is critical to the success of this initiative. Through stakeholder engagement, we have received feedback from broader public sector organizations about the value threshold for submitting Procurement Rationale Reports. In response to this feedback, government is making the following change to the Interim Measures:
- Effective September 23, 2019, select broader public sector organizations must submit a Procurement Rationale Report for procurements valued at $100,000 or above (whereas previously the threshold was set at $25,000).
- Note the Interim Measures for the Ontario Public Service remain unchanged, with a Procurement Rationale Report required for procurements valued at $25,000 or above.
- This change to the Interim Measures demonstrates the government's determination to work with stakeholders throughout this journey, including responding to emerging concerns, as we work to build a new public sector supply chain system.
- Why are there new interim measures?
- What are the benefits of the interim measures?
- Who do the interim measures apply to?.
- Do these new interim measures affect any of the procurements that are currently posted or closed?
- Are all types of procurement covered by the interim measures?
- Which procurements are considered “new”?
- My company is located outside of Ontario. Does this affect my ability to bid or access procurements?
- How do I become an eligible supplier on Ontario’s Vendor of Record program?
- I am in the process of responding to a procurement opportunity which is greater than two years. Will the new interim measures affect this procurement?
- Will there be fewer opportunities for small or medium businesses under the new interim measures?
- I have additional questions not addressed in these Qs & As, who should I contact?
1. Why are there new interim measures?
These interim measures support opportunities for collaborative purchasing, while protecting continuity of business and services during the building of a centralized system. The measures also support the collection of data that is necessary for building the centralized system
2. What are the benefits of the interim measures?
The new measures will help us gather information and identify opportunities to pursue collaborative bulk buying opportunities to achieve efficiencies and leverage other spend opportunities to support centralization. For example, the Interim measures may allow us to identify cases where multiple organizations plan to procure similar goods and/or services which would allow for a more collaborative approach rather than each organization acting independently.
3. Who do the interim measures apply to?
The measures include requirements for the OPS that apply to all ministries, provincial agencies, Ontario Power Generation and the Independent Electricity System Operator.
The measures also establish expectations for select BPS organizations, specifically hospitals; school boards; universities; colleges of applied arts and technology and post-secondary institutions; children’s aid societies; and, corporations controlled by one or more designated broader public sector organizations that exist solely or primarily for the purpose of purchasing goods or services for the designated broader public sector organization or organizations, specifically shared services organizations and group purchasing organizations.
Funding ministries will inform these BPS organizations of how the measures will apply to them. Depending on the existing legislative authority, ministries may be able to direct the select BPS organizations to follow all or some of the measures. In other cases, the funding ministry will request that the BPS organization to comply voluntarily with the measures.
The ‘funding ministry’ refers to the ministry that maintains the primary funding relationship with the select BPS organization.
4. Do these new interim measures affect any of the procurements that are currently posted or closed
No. Procurements that are already posted or closed are not affected. The interim measures apply to new procurements.
5. Are all types of procurement covered by the interim measures?
The interim measures apply to:
- Updated - New procurements of goods and services (consulting and non-consulting) valued at $25,000 or higher for Ministries and Agencies and $100,000 or higher for select Broader Public Service entities.
- Where procurement is related to construction (which means construction, reconstruction, demolition, repair or renovation of a building, structure or other civil engineering or architectural work and includes site preparation, excavation, drilling, seismic investigation, the supply of products and materials, the supply of equipment and machinery if they are included in and incidental to the construction, and the installation and repair of fixtures of a building, structure or other civil engineering or architectural work, but does not include professional consulting services related to the construction contract unless they are included in the procurement.)
- Where procurement is related to goods acquired solely for resale.
The measures do not apply:
6. Which procurements are considered “new”?
A “new” procurement refers to any process (i.e. a Request for Bids, a Request for Information, an invitational procurement, etc.) of acquiring a good or service that begins (e.g. released to the vendor community) after the Interim measures come into effect, and where there is no pre-existing commitment to acquire the good or service on the part of the buyer. An option to extend a pre-existing contract is a new procurement for the purposes of the interim measures.
7. My company is located outside of Ontario. Does this affect my ability to bid or access procurements?
No, the interim measures will not impact who may bid on public sector opportunities.
8. How do I become an eligible supplier on Ontario’s Vendor of Record program?
Information about how to do business with the Ontario Government can be found at the Doing Business with Ontario website.
Opportunities to be included in the Vendor of Record program are posted on the Ontario Tenders Portal.
9. I am in the process of responding to a procurement opportunity which is greater than two years. Will the new interim measures affect this procurement?
Please reach out to the procurement contact person on this opportunity who will be able to assist you with any inquires.
10. Will there be fewer opportunities for small or medium businesses under the new interim measures?
No, the interim measures may provide more consolidated opportunities for small and medium businesses to respond to over time. Small and medium business continue to be eligible to respond to all posted government and BPS procurements.
11. I have additional questions not addressed in these Qs & As, who should I contact?
Questions should be directed to doingbusiness@ontario.ca.
