IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 08 Mar 2018 | Removal date: open ended
Still in force

Public procurement, nes

On March 8, 2018 the "Fairness in Procurement Act, 2018" received royal assent. The stated purpose of the act is to respond to protectionist measures initiated by states and local governments in the United States, specifically measures that "inhibit or prevent Ontario suppliers from participating or succeeding in procurement processes" in what the Act describes as "offending American jurisdictions." If a U.S. government adopts a "Buy American" policy that either restricts or prevents an Ontario supplier from participating in a procurement, the Government of Ontario can designate that State as an offending American jurisdiction. Responding "proportionally" means customizing a regulatory response that will affect the procurement processes involving suppliers from the specific offending American jurisdictions. The specific "requirements, restrictions, policies, sanctions or other measures" imposed on a hospital or bidder-supplier will depend on the applicable regulation passed under the act. The range of responses is broad and could include the following:

  1. Providing that a procurement contract formed between a hospital and a supplier from an "offending American jurisdiction" is void.
  2. Sanctioning a hospital that has entered into a procurement contract in contravention of the Act. The sanctions described in a particularized regulation could be wide-ranging and would reflect, in the spirit of proportionality, the restrictions imposed on Ontario suppliers by the offending American jurisdiction.
  3. Requiring suppliers from offending American jurisdictions to provide additional information to Government entities or broader public-sector entities or meet additional requirements when participating in procurement processes.
  4. Fully excluding suppliers from an offending American jurisdiction from participating in procurement processes, or allowing them to participate but creating an evaluation preference in favour of the non-sanctioned suppliers. This would mirror the above-noted Buy American Act.
  5. Barring certain parties from launching legal proceedings or otherwise seeking compensation or other remedies against the hospital and the Government of Ontario, among other parties.

AFFECTED COUNTRIES

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