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May 11, 2015
Ontario-Quebec Announce Updated Rules for Government Procurement
Changes to procurement rules by the broader public sector were announced by the
Premiers of Ontario and Quebec today in Toronto. The Premiers have agreed in
principle to an update of the 2009 Ontario-Quebec Trade and Cooperation Agreement
(OQTCA) Public Procurement Chapter to align it with the Canada-European Union
Comprehensive Economic and Trade Agreement (CETA).
Since 2009, the OQTCA has covered buying by provincial ministries, schoolboards and
municipalities, and other public sector organizations. For municipal governments
thresholds remain at $100,000 for goods, services, and construction. The Chapter will
be updated to align with CETA on public disclosures, information needs, qualification of
suppliers, and other matters. As well, the Chapter will include a protest process for
unsuccessful bids, including municipal procurements. Professional services and
procurements covering cultural industries, non-profits, and indigenous communities are
not covered.
The thresholds in OQTCA for municipal governments are lower than those in either the
Agreement on Internal Trade (AIT) or the CETA. AMO will be seeking clarification from
Minister Duguid on the specific impacts that today’s announcement has for municipal
governments including the need to adjust procurement by-laws and procedures to
reflect the other requirements in the OQTCA Procurement Chapter.
Talks on the AIT are also being held by the provinces, territories and the federal
government, and updates to the AIT are likely forthcoming. However, no information is
available at this time.
OQTCA changes will come into force for municipalities in September 2016.
For more information and details on procurement thresholds in each agreement, please
see: OCTCA - Procurement Chapter.
AMO Contact: Craig Reid, Senior Advisor, E-mail: [email protected], 416.971.9856
ext. 334.
PLEASE NOTE: AMO Breaking News will be broadcast to the member municipality’s
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MAY 26, 2015
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11. C.9 - CW INFO
NEWS
Office of the Premier
OQTCA - Procurement Chapter
May 11, 2015 12:15 P.M.
Last fall, the Premiers of Ontario and Québec signed a memorandum of understanding
confirming their intention to reinvigorate and strengthen the trade relations between the two
provinces.
They committed to explore opportunities to align the chapters of the Ontario-Québec Trade and
Cooperation Agreement (OQTCA) with those in the Canada-European Union Comprehensive
Economic and Trade Agreement (CETA). Ontario and Québec have now reached an agreement
in principle on a revised OQTCA government procurement chapter. This is the most ambitious
procurement agreement either Québec or Ontario has ever negotiated.
Key points
The chapter includes rules on the conditions for participation, publication, technical
specifications, qualification of suppliers, disclosure of information, deadlines, bid protest, etc.
Almost all of the contracting entities of the two provinces are covered by the new chapter:
ministries, agencies, municipalities, education and health networks, and state enterprises. All
goods and construction service contracts are covered. Moreover, all service contracts are
covered, with the exception of health and social services, financial services and services
provided by certain professionals: doctors, dentists, nurses, pharmacists, veterinarians,
surveyors, accountants, lawyers and notaries. The coverage of the new chapter is the most
ambitious ever offered by Québec and Ontario to a trading partner.
The thresholds applicable to the new chapter are lower than those of the Agreement on Internal
Trade (AIT) and CETA. The chart below shows the thresholds applying under those
agreements. The thresholds will be adjusted in line with inflation every two years, which is a
new feature compared to the current OQTCA chapter and the AIT.
Overall, the new chapter simplifies and streamlines various requirements within existing
international agreements, making it more user-friendly for vendors and suppliers. Public bodies
and taxpayers will also benefit from open, competitive and non-discriminatory procurement rules
that ensure value for money in public procurement.
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The revised chapter improves upon existing commitments to better reflect current procurement
practices of both parties as well as covering a greater portion of procurement contracts.
Exceptions
The new chapter does not cover procurement of cultural industries, indigenous communities
and non-profit organizations. Measures necessary for the protection of the environment, health,
and consumers are excluded from the scope of the chapter. The Agreement also includes partyspecific exceptions.
Entry into force
The Agreement will enter into force in two subsequent phases: January 1, 2016 for ministries
and agencies and September 1, 2016 for other entities. The revised chapter of the OQTCA will
come into force in 2016 ahead of the implementation of CETA and the renewal of the AIT.
Thresholds applying in the OQTCA, AIT and CETA
(Procurement)
Covered entities
Ministries and agencies
Contracts
OQTCA
AIT
CETA*
Goods
$25,000
$25,000
$315,000
Services
$100,000
$100,000
$315,000
Construction
$100,000
$100,000
$7,800,000
$100,000
$100,000
$315,000
$100,000
$250,000
$7,800,000
$500,000
$500,000
$630,000
services
School boards, academic, health and
Goods and
social services entities, and
services
municipalities
Construction
services
Entities of a commercial or industrial
Goods and
nature
services
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Construction
11. C.9 - CW INFO
$5,000,000 $5,000,000 $7,800,000
services
*Note that the CETA thresholds are fixed in special drawing rights.