Kincardine council received a report regarding the new rules for procurement of fleet vehicles and capital projects.
The new guidelines are thanks to the province’s Buy Ontario Act (2025) and will change the way the municipality purchases vehicles and selects contracts for capital projects going forward.
Director of Corporate Services and Treasurer Roxana Baumann shared the changes with council.
“In practical terms for fleet purchases, if an Ontario-made vehicle is available and operationally feasible, the municipality is required to select that vehicle, even if it is not the lowest cost,” she shared during Wednesday’s council meeting.
For the municipality, it means if there is a particular type of vehicle that the municipality needs, they will have to choose a vehicle that is made in Ontario.
If there isn’t a vehicle available based on operational standards, then the municipality is permitted to widen the search for a vehicle that is built in Canada.
If the requirement is not met, only then can the municipality look for a vehicle that is made elsewhere.
“There is limited flexibility, but only in specific cases where costs increase significantly and are appropriately documented can you have an exemption,” explained Baumann.
Those limitations also apply to capital projects within the municipality.
Baumann explained that for capital projects, “We are now required to incorporate domestic content considerations into our processes, and require bidders to submit domestic supply chain plans.”
While the focus of the Buy Ontario Act were designed to promote economic growth within the province, there are many issues that can arise from such restrictions, according to Baumann.
“These changes are expected to have several impacts, including cost increases, longer procurement timelines, reduced competition in some specialized markets, and some increased administrative requirements,” she said. “And there are also associated risks related to compliance, potential procurement challenges, and alignment with trade agreements.”
The report, which was presented as information, said that municipal staff will continue to monitor provincial direction and will report back to council with required policy and resource updates in order to support effective and compliant implementation.
