Building Ontario Businesses Initiative Act (BOBIA)

The Building Ontario Businesses Initiative Act (BOBIA), O.Reg. 422/23 is a provincial regulation that will impact procurement requirements for purchases under $121,200 CAD (before taxes). BOBIA applies to Trent University as a Broader Public Sector (BPS) institution.

The objective of the Act is to give Ontario Businesses preference when conducting procurement processes.  The university will be required to demonstrate compliance with our BOBIA obligations on its procurement activity.

BOBIA does not override the university’s requirement to engage in competitive procurement where required by Procurement Policy.

Ontario Business Definition

The Act defines any supplier, manufacturer, or distributor that:

1. Conducts its activities on a permanent basis in Ontario, AND
2. At the time of a procurement, either:
   • Has its headquarters or main office in Ontario, OR
   • Has a minimum of 250 full-time employees in Ontario

The University will rely on a representation by the Vendor regarding their status as an Ontario Business as defined by BOBIA

Ways of giving preference to Ontario Businesses

BOBIA gives 2 methods for giving preference to Ontario Businesses when seeking quotes as part of invitational competitive procurement (under $121,200 threshold):

1. Only invite Ontario Businesses to quote
2. Allocate a 10% evaluation preference to Ontario Businesses who provide quotes

In either instance, departments are required to be fair and transparent when requesting quotes from Vendors. This includes providing Vendors with information regarding how their quotes will be evaluated. Refer to ITQ Templates below for detail in process to assist in quoting the process.

Exemptions under BOBIA

The University must give preference to Ontario Businesses in any purchase under $121,200, regardless of the means of procurement. Exceptions to the requirement to give preference to Ontario Businesses are only valid for the procurement of:

1. Goods or services are not available from an Ontario Business
2. Purchase from a Vendor of Record (i.e. OECM), Standing Offer, Qualified Supplier List
3. Goods or services required for an emergency
4. Goods or services procured for commercial sale or resale
5. Services provided by treasury operations, lawyers, paralegals, notary public, or expert witnesses

If an exemption applies to the procurement, demonstrate the exemption as to why not considering an Ontario Business in purchasing decision by submitting a Non-Ontario Procurement Justification Form attached to Procurement. BOBIA exemptions are separate considerations from the Non-Competitive Approval Form associated with Competitive Procurement.

How to Comply with BOBIA

Using your Corporate Credit Card (i.e., for purchases under $5,000)

Purchases made on your university corporate credit card must be made from an Ontario Business unless a valid exception applies. If you purchase a good or service from a non-Ontario Business, keep the justification in your records.

Cheque Requisitions (i.e., an invoice to pay for procurements less than $25,000)

Purchases paid for with a cheque requisition must be made from an Ontario Business unless a valid exception applies. The BOBIA Non-Ontario Procurement Justification Form must be attached to the supporting documentation for your purchase.

Travel and Expense System

If you purchase a good or service from a non-Ontario Business, keep the justification for that decision in your records.

Purchase Requisition

Complete the BOBIA Non-Ontario Procurement Justification Form and attach to the Purchasing Requisition when applicable.

Invitational Procurement (i.e., purchase requisitions where three quotes are required)

1. Complete the Invitation to Quote (ITQ)
   • Include the details of the requesting purchaser.
   • Describe the goods or scope of services being requested.
   • Identify the evaluation method that will be used for making your purchase decision: price-only or evaluation criteria.
   • Identify the required by date and contact.
2. Send the ITQ to each vendor being invited to quote on the good or service.
3. Once all quotes have been received, evaluate the quotes according to the method disclosed to the Vendor to arrive at the purchase decision. This includes giving a 10% preference to Vendors that have represented having met the definition of an Ontario Business under BOBIA.
4. Complete and submit a purchase requisition, attaching the relevant quotes and supporting documentation.

The University is required to report these procurements to the province to demonstrate compliance with BOBIA obligations. Procurement Services will collect and report this data on behalf of the University.

Need Help?

Procurement Services is committed to supporting your BOBIA compliance efforts and available to assist. As much as possible, seek vendors that are acknowledged as an Ontario Business or Vendor of Record by the university.

The University acknowledges the complexity posed by BOBIA, which calls for additional processes and accountability. Despite the challenges, the University is bound by law to comply with this legislation. We are committed to keeping you informed as the province provides further direction or information on this matter. Contact Procurement Services if any questions or assistance needed regarding BOBIA or ITQ invitation process at purchasing@trentu.ca