Further to OECM’s communication, which was published on April 8, 2025, we are pleased to provide an important follow-up update along with a set of Frequently Asked Questions (FAQ) to support your understanding and implementation of the Government of Ontario’s Procurement Restriction Policy on U.S. Businesses, which took effect on March 4, 2025.
This update is intended to clarify key aspects of the Policy and provide practical guidance on how it may impact your organization’s procurement activities when leveraging OECM agreements.
The Government of Ontario’s Procurement Restriction Policy, effective March 4, 2025, introduces new limitations on the participation of U.S.-based businesses across all public sector entities, including Broader Public Sector (BPS) organizations. As outlined in the Procurement Restriction Policy (U.S. Businesses): A Guide for Public Sector Buyers (the Guide), a U.S. business is defined as any supplier, manufacturer, or distributor that has:
1. Its headquarters or main office in the United States, and
2. Fewer than 250 full-time employees in Canada at the time of the procurement.
Are OECM agreements compliant with the new Procurement Restriction Policy?
Yes. Whether you are purchasing directly through an OECM agreement or conducting a Second Stage Selection, your procurement activities are fully compliant with the Procurement Restriction Policy—both under agreements signed before and after March 4, 2025. You can continue to purchase with confidence, knowing that OECM’s procurement processes align with all provincial requirements.
What specific steps has OECM taken to ensure compliance with the Policy?
We are pleased to confirm that OECM has proactively implemented several key measures, including:
- Ensuring that all current OECM agreements remain fully compliant, including any associated second stage selection processes.
- Requiring no action from customers when using OECM agreements, as all OECM awarded suppliers remain eligible.
- Updating all new procurement documents to include mandatory supplier self-declaration of U.S. business status.
- Disqualifying any new bid submissions that do not meet eligibility under the Policy.
- Implementing ongoing supplier monitoring to validate compliance.
How is OECM maintaining service continuity while ensuring compliance?
To ensure full compliance with the Policy without impacting service continuity or the value delivered to our customers, OECM has taken several proactive measures:
- All current and future OECM agreements are compliant, including any related Second Stage activities.
- All new procurement documents now include mandatory supplier eligibility declarations, with updated templates and language aligned with the Policy.
- Robust supplier validation and monitoring processes have been implemented to ensure ongoing transparency and adherence to the compliance requirements.
Are there exceptions to the Policy, and how does OECM manage them?
Exceptions to the Policy are strictly limited. As per the Policy Guide, procurement from a U.S. business is only permitted if:
- The supplier is the only viable source; and
- The procurement cannot be delayed, such as in cases of public health or safety risks.
A formal exception process has been established at OECM. All exception requests will be approved by OECM’s President & CEO, in accordance with Section 5 of the Guide. If your organization requires documentation confirming an approved exception for new agreements launched through the procurements issued after March 4, 2025, OECM may provide it upon request.
How is OECM supporting Ontario’s economy and promoting Canadian suppliers?
OECM is deeply committed to the broader economic goals of the province. To support this mandate, we have implemented the following measures:
- 96% of our awarded suppliers are Canadian-based, reinforcing local economic development and supply chain resilience.
- We continuously work with suppliers to identify and prioritize Canadian products and alternatives in all procurement initiatives.
For all new OECM procurement opportunities, U.S.-based businesses that meet the definition under the Procurement Restriction Policy are disqualified from consideration, and preference is given to eligible Canadian suppliers in alignment with provincial directives.
What purchasing options are available through OECM agreements?
| Purchasing Option 1 | Purchasing Option 2 |
| Direct Purchase: Buy directly from a supplier at contracted maximum rates under the agreement. | Second Stage Selection: Request custom quotes from pre-qualified suppliers to meet specific needs and achieve greater value. |
OECM’s Second Stage Selection Process allows customers to request customized quotes for their specific product and service requirements from pre-qualified supplier partners. The process is non-binding, simple, and quick, and it allows for greater flexibility and choice in selecting the supplier partner that best meets your needs.
Here’s how the Second Stage Selection Process works:
- Review the Second Stage Selection Process Guide (available with each eligible agreement)
- Complete the Second Stage Selection Template
- Send the request to one or more supplier partners
- Evaluate supplier responses based on your specific requirements
- Execute a Customer-Supplier Agreement (CSA) with your selected supplier(s)
- Secure your products and/or services
Important reminders when issuing a Second Stage Request:
- Ensure all internal customer procurement policies are followed.
- Engage with your internal procurement department as required.
- Provide all necessary information, including scope of work, specifications, drawings, and applicable terms and conditions.
OECM’s dedicated Customer Support team is also available to support you throughout the Second Stage Selection Process. Contact them at customersupport@oecm.ca
Who can I contact for further information or support?
If you have any questions regarding this update, the Second Stage Selection Process, or how OECM can assist with your procurement planning under the new Restriction Policy, please contact our dedicated Customer Support team:
Email: customersupport@oecm.ca
Phone: 1-844-OECM-900 (1-844-632-6900)
For additional information on the Government of Ontario’s Procurement Restriction Policy, please visit Procurement Restriction Policy | Ontario.ca.
