Purchasing regulation announcement: Building Ontario Businesses Initiative Act
To: TMU purchasing card holders, financial systems users, and departmental and administrative assistants
Cc: Leaders
The Building Ontario Businesses Initiative Act (BOBIA) is a new provincial procurement regulation that took effect on April 1, 2024. The Act impacts requirements for all university purchases valued at less than $120,000 and requires that preference is given to Ontario businesses when procuring goods and services for the university.
As you may recall, the open competitive procurement threshold recently increased from $100,000 to $120,000, as announced in our notice of changes to purchasing thresholds and Execution of Contracts Policy at TMU. Financial Services is available to support departments to ensure compliance with existing trade agreements and with BOBIA.
What this means to you
If you or someone in your department or unit purchases goods or services for the university, please be aware that BOBIA will now require you to give preference to Ontario businesses for all purchases that are less than $120,000.
The university is bound by law to comply with the BOBIA legislation. While BOBIA does not override the university’s requirement to engage in competitive procurement processes, it is to be observed in addition to those processes.
What is considered an Ontario business?
Under BOBIA, an Ontario Business is defined as any supplier, manufacturer or distributor that conducts its activities on a permanent basis in Ontario and at the time of procurement either has:
- its headquarters or main office in Ontario; or
- has 250 or more employees in Ontario.
The university can rely on the representation of the vendor regarding their status as an Ontario business as defined by BOBIA
How to comply with BOBIA
Where possible, Financial Services has worked to ensure existing TMU processes are aligned with BOBIA requirements. This will help minimize the administrative burden of compliance with the new regulations. Moving forward, to comply with BOBIA you will need to:
- award to an Ontario Business if the purchase is under $120,000;
- give Ontario businesses preference in evaluation; or
- document an approved exception.
More information can be found on the Building Ontario Businesses Initiative Act page of the Financial Services website, including information on:
- records and reporting;
- examples for applying BOBIA when you are selecting based on price or when you are selecting based on rated criteria such as technical factors.
Virtual training sessions
Financial Services is hosting sessions for employees to learn more about the BOBIA legislation, and to ask questions. Register via the Learning Events Calendar for one of three sessions on the following dates:
Questions?
If you have any questions about the Building Ontario Businesses Initiative Act’s enactment and implementation at Toronto Metropolitan University, please contact Danny Greenfield, interim senior director, strategic procurement and payment services at danny.greenfield@torontomu.ca or 416-979-5000, ext. 554276.
