Guidance for the Provincial Procurement Restriction on U.S. Businesses
The Ontario Government’s U.S. Procurement Restriction Policy (PRP) restricts U.S. businesses from participating in public sector procurements within Ontario. The PRP does not override TMU’s requirement to engage in competitive procurement processes, but is in addition to those processes.
During request for proposal processes, Financial Services will work with departments and units to ensure compliance with existing trade agreements and the PRP. If you are not pursuing an RFP, please refer to the U.S. Procurement Restriction Policy page for more guidance. If you are a researcher requiring support at any point in the procurement process, please contact the Purchasing Services unit.
What is a U.S. business?
Under the PRP, a U.S. Business is defined as any supplier, manufacturer or distributor that:
- has its headquarters or main office located in the United States; and
- has fewer than 250 full-time employees in Canada at the time of the procurement process.
The university can rely on the representation of the vendor regarding their status as a U.S. business as defined by the PRP. As much as possible, we encourage you to continue seeking vendors that have been:
- acknowledged as an Ontario business according to the Building Ontario Businesses Initiative Act; or
- have been pre-qualified to be part of TMU’s vendors of record list.
What does the U.S. Procurement Restriction Policy apply to?
The PRP applies to all university purchases of any dollar value. It is implemented on a go-forward basis and does not affect existing agreements or vendor of record arrangements.
There are exceptions under the PRP for purchases of goods or services that are required from a U.S. business. However, please keep in mind that inadequate planning does not constitute an emergency.
How to comply with the U.S. Procurement Restriction Policy
The PRP applies to all university purchases of goods and services of any dollar value. Beyond the PRP, the university holds an obligation to comply with the Building Ontario Businesses Initiative (BOBIA) Act. There are three ways by which you can comply with the PRP in tandem with BOBIA when making purchases.
Determine if one or more non-U.S. businesses are available to meet your requirements, with priority given to Ontario businesses, per BOBIA requirements. A (google sheet) TMU Ontario business vendor list (external link) is available, from which you can find a verified Ontario vendor.
If an Ontario business is definitively not available for your requirements, you can award to any Canadian or non-U.S. business.
Using a pre-qualified vendor on TMU’s vendors of record list allows you to bypass restriction checks and simplifies the procurement process. There may be additional vendors of record available beyond the vendors in the list provided—to find out if this is the case for your purchase, please contact Purchasing Services to discuss your needs.
If a valid exception exists, you are required to document the exception in the (google form) Non-Ontario and U.S. Business Exception Form (external link) and submit it in the Financial Information System (FIS) (opens in new window) .
Exceptions
The PRP applies to all new purchases. Goods and services must not be purchased from U.S. businesses. Exceptions for using U.S. businesses are allowed if:
- they are the only viable supplier, and
- the purchase cannot be delayed.
Purchases from U.S. businesses require a (google form) Non-Ontario and U.S. Business Exception Form (external link) and additional approvals.
- For purchases less than $120,000, the approval process within the Financial Information System will be utilized for further departmental approvals.
- For purchases more than $120,000, approvals will be facilitated by Purchasing Services.
Records and reporting
To demonstrate compliance with the PRP, TMU will be required to report procurements to the province. While Financial Services will report this data on behalf of the university, you must ensure the appropriate documentation is collected at the time of arranging procurement.
You can determine your documentation requirements according to the payment method and dollar value of your procurement.
PRP documentation requirements and record-keeping chart
The table below summarizes documentation requirements according to the two determining factors of payment method and dollar value.
Payment method |
Total procurement value (before taxes) |
Required documentation |
Where to upload documentation |
|---|---|---|---|
Cheque requisition or expense reimbursement |
$0 to $120,000 |
|
Please maintain documentation locally |
TMU Purchasing Card (P-Card) or self-service invoice (SSI) |
$5,000 or less |
|
Please maintain documentation locally |
Purchase requisition |
$0 to $24,999 |
|
Please upload documentation to the Financial Information System (FIS) |
Purchase requisition |
$25,000 to $119,999 |
|
Please upload documentation to the Financial Information System (FIS) |
Please note, for non-competitive purchases requiring a request to waive (RTW), the (google form) U.S. Business Attestation Form (external link) and (google form) Non-Ontario and U.S. Business Exception Form (external link) are required in addition to the RTW form.
Documentation explanations
If you are unsure what each type of document entails, a summary is provided below.
To streamline the procurement process, vendors can provide quotes using their normal format but should be asked to include in their quote the (google form) U.S. Business Attestation Form (external link) , which affirms they are a U.S. Business.
Vendors can confirm they are a U.S. business by completing the (google form) U.S. Business Attestation Form (external link) .
There are limited and specific exceptions when purchases are required to be made from U.S. businesses. In these specific cases, you are required to complete the (google form) Non-Ontario and U.S. Business Exception Form (external link) and either store it in your local records or attach a copy of the form to your purchase requisition. Find more on the PRP documentation requirements and record-keeping chart.
Questions?
If you have any questions or require assistance, please contact Purchasing Services.