Important information about the new Buy Ontario Procurement Directive

To: Leaders, Financial Information Systems users and departmental and administrative assistants

Effective April 13, 2026, the Government of Ontario has introduced the Buy Ontario Procurement Directive (BOPD) (external link) , requiring broader public sector entities, like Toronto Metropolitan University, to prioritize Ontario and Canadian suppliers when procuring goods and services.

The directive consolidates:

• The Building Ontario Businesses Initiative Act (BOBIA), effective April 1, 2024;

• The Procurement Restriction Policy (U.S. businesses), effective March 4, 2025; and

• New strategic procurement requirements for capital infrastructure and light-duty fleet vehicles, effective April 13, 2026.

In parallel, the Tri-agency (including the Canadian Institutes of Health Research (CIHR), the Natural Sciences and Engineering Research Council of Canada (NSERC) and the Social Sciences and Humanities Research Council of Canada (SSHRC)) has updated the Tri-agency Guide on Financial Administration (TAGFA) (external link)  to reflect requirements from the federal Buy Canadian Policy (external link) , encouraging prioritization of Canadian suppliers and Canadian content in Tri-agency funded procurement, where appropriate.

We ask that leaders share this email with employees in their units responsible for making procurement decisions on behalf of the university.

What remains the same?

• For purchases less than $120,000, departments must continue to comply with the provincial policies, which include:

• Giving Ontario businesses preference during evaluation;  

• Restrictions on procuring goods and services from U.S. businesses; and

• For purchases exceeding $120,000, Procurement Services will work with departments to explore compliance and sourcing strategies.

For additional information on complying with the existing requirements, please refer to Building Ontario Businesses Initiative Act and Guidance for the Provincial Procurement Restriction on U.S. Businesses pages.

What has changed?

Depending on the value and type of procurement, different domestic preference rules apply:

• All procurements over $120,000: Procurement Services at TMU will manage new requirements, which includes granting preference to Canadian businesses;
  • Note for research: Tri-Agency funded procurements may have additional requirements, as the Tri-Agency has strongly encouraged TMU to take reasonable steps to prioritize Canadian suppliers, services, materials, and content wherever possible under the Federal Buy Canadian Policy. The policy applies to procurements over $25M ($5M effective June 15, 2026).  

• Fleet vehicles (any value): For all purchases of light‑duty fleet vehicles, institutions must prioritize Made‑in‑Ontario (MIO) vehicles or consider vehicles from Ontario Vehicle Producers;
  • Learn more by viewing the  (google doc) fleet vehicles section of the Vendors of Record and Common Purchases resource (external link) ; and

• Capital infrastructure (any value): Capital infrastructure procurements may require a domestic supply chain plan. Procurement Services is working closely with sector peers and subject matter experts to operationalize the new requirements.

What this means for departments

• Departments should engage Procurement Services early in the procurement process, especially for higher‑value or research‑funded purchases;

• Additional documentation for supplier selection and exceptions may be required;

• Departments should continue to follow competitive procurement requirements under university policy; and

• Departments should maintain clear records to support decision making and provincial reporting.

Please note that Toronto Metropolitan University may be required to report certain Buy Ontario Procurement Directive outcomes to the Province to demonstrate compliance.

Additional guidance will be shared in the future

Working with our sector partners, Procurement Services is developing tools and guidance to support the implementation of the Buy Ontario Procurement Directive and Buy Canadian expectations. We recognize the complexity of these new requirements and will continue to share updates as further guidance becomes available.

Questions?

If you have any questions about the Buy Ontario Procurement Directive and its requirements, please contact Procurement Services by emailing purchasing.assistant@torontomu.ca.