Unlocking the Potential of Public Procurement in Ontario

(Toronto – September 13, 2023) – The impact of public procurement is far-reaching, influencing economies and societies at large. Today, the Ontario Chamber of Commerce (OCC) released Power of the Purchase Order: Modernizing Public Sector Procurement in Ontario. The report, curated in response to ongoing consultations with industry experts, addresses the critical need for transformation in the province’s procurement practices.

“Procurement modernization is a major opportunity to transform health care and other public services, build more resilient supply chains, and improve value for Ontarians,” said Rocco Rossi, President and CEO of the OCC. “This report assesses the current procurement challenges in Ontario and offers 23 recommendations to drive better outcomes across the broader public sector, with a particular focus on innovation, attracting investment from a range of businesses, and health care procurement.”

Ontario spends nearly $30 billion each year procuring goods and services, from pencils to complex medical technologies. When making those purchases, government and the broader public sector have a responsibility to provide value for taxpayers, as well as a unique ability to foster new markets, improved living standards, and economic development by virtue of their spending power. However, public procurement outcomes in Ontario are often not met.

Key recommendations from the report are:

1. Rethinking Procurement: Embrace collaborative, value-based procurement (VBP) for complex purchases, with an emphasis on lifecycle costs, innovation, economic development, supply chain resiliency, and other long-term outcomes.
2. Attracting Investment: Encourage participation through competitive contracts, transparent information sharing, and policies that support access for small, local, diverse, and green
3. Innovating Health Care: Facilitate data sharing, ensuring health care procurement continues to be driven by technical expertise, and tackle implementation barriers to health care innovation.

“Our commitment to innovation and digital transformation aligns seamlessly with effective public procurement, fostering a landscape of efficiency and modernization. Through these collaborations, Microsoft Canada remains dedicated to driving positive change, amplifying efficiency, and contributing to the advancement of public service operations,” said Lisa Carroll, Public Sector Lead, Microsoft Canada.

“As the Ontario Government moves towards centralized procurement via Supply Ontario, a significant opportunity for improvement exists, particularly in health care. By working with key stakeholders, including suppliers, to reform procurement, there can be an implementation of strategies and models which enhance and improve patient care, save money in the health care system, and grow the economy in Ontario,” said Nicole DeKort, President and CEO of Medtech Canada.

In light of the transformative potential of procurement, the OCC’s report sets forth a visionary path. By embracing these recommendations, Ontario can amplify economic growth, enhance public services, and solidify its role as a trailblazer in forward-looking procurement practices. The OCC would like to thank its partners, Microsoft Canada and Medtech Canada, for their generous support of this project.

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About the Ontario Chamber of Commerce
The Ontario Chamber of Commerce (OCC) is the indispensable partner of business and Canada’s largest, most influential provincial chamber. It is an independent, not-for-profit advocacy and member services organization representing a diverse network of 60,000 members. The OCC’s mission is to convene, align and advance the interests of its members through principled policy work, value-added business services and broad engagement to drive competitiveness and economic growth in the province.

For more information, please contact:
Andrea Carmona
Manager, Public Affairs,
Ontario Chamber of Commerce
andreacarmona@occ.ca | Mobile: (647) 234-0255