Hamilton City Council voted to approve changes to allow for the expanded procurement of local and Canadian goods, services, and construction in the wake of President Donald Trump’s tariff attacks on Canada.
There are two methods through which the City of Hamilton awards contracts: through a Request for Quotations and through a Request for Tenders.
A Request for Quotations deals with smaller dollar figures (up to $100,000 for goods, services, and/or construction work) and is a more closed process whereby the city directly contacts possible vendors. These requests are not required to be publicly advertised as they are more informal.
Meanwhile, a Request for Tenders, which deals with dollar figures above $100,000 are more formal and are required to be publicly advertised.
All contracts awarded through both processes are automatically made to the vendor that returns with the lowest compliant bid.
A report from City of Hamilton staff recommended increasing the dollar thresholds that require a Request for Tenders process so that more contracts are awarded through the more closed process, allowing the city to choose local vendors.
The Canadian Free Trade Agreement stipulates that the maximum contract limit allowable for a Request for Quotations is $133,800 for goods and/or services and $334,400 for construction work.
Thus, City Council voted to increase those limits to the maximum allowable under the Canadian Free Trade Agreement and city staff will be directed to reach out to local or Canadian vendors for contracts.
A staff report notes that, over the past 12 months, the city has issued purchase orders for goods, services, and construction work in the approximate aggregate dollar amount of $792.8 million to 2,681 different vendors.
Of the 2,681 vendors, city data says that 99 per cent of them who supplied goods, services, and/or construction work to the city had a “registered business address in Canada” and 90.75 per cent had a “registered business address in Ontario.”
However, city staff note that the data “does not indicate the country of origin for the goods or services procured, nor does it suggest that the goods or services are Canadian.”
“Staff also recognizes that although a number of vendors have a Canadian or Ontario registered business address, these vendors may be an affiliate or subsidiary of a U.S. vendor or alternatively be a Canadian company whose business is to import goods from the U.S. or other countries for sale in Canada,” continues the staff report.
For example, staff note that Hamilton Water used 58 vendors to supply “proprietary or original equipment or manufactured goods for equipment or operations.”
Of those 58 vendors, five of those provided approximately $95,000 of products per year and were from an American company and manufactured in the U.S., while the other 53 vendors supplied $5.53 million of products that were from a Canadian company but manufactured in the U.S.
Staff noted that it would be difficult for Hamilton Water to shift away from American products.
Nevertheless, staff say that they are working with internal city departments and external technical consultants to consider the feasibility and implementation of additional procurement measures.
They will be providing further reports in due time.
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
