Selling to the Ontario public sector under the Buy Ontario Procurement Directive: a marketing guide for B2B vendors
Since April 13, 2026, the Buy Ontario Procurement Directive asks ministries, provincial agencies and designated broader public sector organizations to prefer Ontario businesses below $139,000 for services, Canadian businesses up to $368,000, and to exclude US businesses from new procurements with narrow exceptions. For B2B vendors that changes positioning more than tactics: state precisely where you are headquartered and how many full-time staff you have in Ontario and Canada, get onto the right Vendor of Record arrangements, and market to named public sector accounts well before procurements open. This is not legal advice. Confirm how the rules apply to your company with counsel or the program office.
Key takeaways
- An Ontario business has its headquarters in Ontario or at least 250 full-time employees in Ontario at the time of procurement.
- Services under $139,000: preference to Ontario businesses. $139,000 to under $368,000: preference to Canadian businesses.
- US businesses are excluded from new goods and services procurements, with two exceptions, including a 90% Canadian staffing commitment for services.
- Supply Ontario runs enterprise-wide Vendor of Record arrangements across 18 categories, including IT and marketing.
What changed on April 13, 2026
Ontario's Buy Ontario Procurement Directive, issued under the Buy Ontario Act (Public Sector Procurement), 2025, applies to all ministries, provincial agencies, Ontario Power Generation, the Independent Electricity System Operator and broader public sector organizations designated under the Broader Public Sector Accountability Act, 2010. The province says it is in effect as of April 13, 2026, with exclusions only for urgent, unforeseen procurements.
For Toronto technology and services companies, the directive is good news if you can prove you qualify, and a positioning problem if your messaging is vague. For US companies, it is a near-closed door unless you meet one of the exceptions.
The tiers, in one table
These are the thresholds Ontario publishes for the Building Ontario Businesses Initiative section of the directive. Entities apply them "wherever feasible".
| Procurement value | Government entities | BPS entities |
|---|---|---|
| Goods under $34,700; services under $139,000 | Preference to Ontario businesses | Under $139,000: preference to Ontario businesses |
| Goods $34,700 to under $368,000; services $139,000 to under $368,000 | Preference to Canadian businesses | $139,000 to under $368,000: preference to Canadian businesses |
| $368,000 and above | Preference to businesses of Ontario's trading partners, with weighted domestic criteria | Same |
| $50 million and above, specified sectors | Industrial Regional and Technology Benefit requirement | Same |
The definitions are specific. An Ontario business has its headquarters or main office in Ontario, or at least 250 full-time employees in Ontario at the time of the procurement. A Canadian business has its headquarters in any province or territory, or at least 250 full-time employees in one province or territory.
The US exclusion, and its two exceptions
Under the directive's Procurement Restriction Policy, a US business is one headquartered in the US with fewer than 250 full-time employees in Canada. Entities must exclude US businesses from new goods and services procurements at any value, unless the US business is the only viable source and the procurement cannot be delayed, or, for services, the US business commits to at least 90% of the required staff being located in Canada. Government entities need deputy minister or CEO approval to buy from a US business.
If you are a US company with a Toronto team, the 90% staffing commitment and your Canadian headcount are now core sales facts. If you are a Canadian company competing against US incumbents, the directive is a reason to reach accounts you could not reach before.
We plan account lists, budgets and reporting by market, with CASL and Law 25 built in from day one.
Vendor of Record arrangements are the shortcut
Supply Ontario runs enterprise-wide Vendor of Record (VOR) arrangements that let one or more vendors provide goods or services to Ontario Public Service and broader public sector entities for a set period, with set terms and pricing. Its listing shows 18 categories, including IT hardware, services and software, management consulting, and advertising and communications. Buyers may run a second-stage selection among vendors of record.
For marketing, the VOR works like a supply arrangement federally: being on it gets you into the room, and the second-stage selection is decided by who the buyer already knows. Market to the entities that use your arrangement, not to the arrangement.
A marketing plan for Ontario public sector accounts
This plan assumes you sell technology or professional services and have a small public sector team.
- Confirm and publish your status: headquarters, Ontario and Canadian full-time headcount, where services are delivered from. Put it on your public sector page and in every proposal.
- Find the arrangements: check Supply Ontario VOR categories and the Ontario Tenders Portal for your category.
- Build a named account list of ministries, agencies and designated BPS organizations that buy what you sell.
- Map buying roles: program owners, IT, procurement and, where relevant, privacy and security.
- Run account-based campaigns and briefings for those roles, in English and, for French-language service areas, in French.
- Report accounts engaged, briefings held and procurements you were positioned for, from your CRM.
Who gains and who has to adapt
The directive affects vendor types differently. This is how we read it for B2B sellers.
| Vendor type | Effect | Marketing response |
|---|---|---|
| Ontario-headquartered technology or services firm | Preference in the lower tiers | State headquarters and Ontario headcount precisely; target accounts that used US incumbents |
| Canadian firm headquartered outside Ontario | Preference in the middle tier; no Ontario preference unless 250+ Ontario staff | Lead with capability and Canadian content; show Ontario delivery capacity |
| US firm with 250+ full-time staff in Canada | Not a US business under the directive's definition | Make Canadian headcount and delivery visible |
| US firm with a small Canadian team | Excluded unless an exception applies | Assess the 90% Canadian staffing commitment for services, or partner with an Ontario or Canadian firm |
Messaging that works under Buy Ontario
Evaluators read a lot of "local" claims. The ones that help are verifiable: "headquartered in Toronto", a stated count of full-time employees in Ontario, "all delivery staff based in Canada". The ones that do not are adjectives. If you qualify as an Ontario business, say it in the terms the directive uses. If you qualify only as a Canadian business, say that and lead with capability.
Do not overstate. Entities may rely on a business's representation that it is not a US business, which puts the responsibility on you to be accurate.
Where we fit
We work with clients in Toronto and across Ontario on account-based programs for public and private sector buyers. Our Toronto ABM page explains how we run named-account programs.
Our account-based marketing services cover the platforms we use, from LinkedIn and programmatic to Demandbase and 6sense.
For federal buyers, see our guide to marketing to the Government of Canada, which covers CanadaBuys, security sponsorship and Buy Canadian.
To plan your Ontario public sector accounts, talk to our team.
Frequently asked questions
When did the Buy Ontario Procurement Directive take effect?
Ontario says the directive is in effect as of April 13, 2026. It was published on March 30, 2026 and updated on May 22, 2026.
What counts as an Ontario business?
A business with its headquarters or main office in Ontario, or with at least 250 full-time employees in Ontario at the time of the procurement.
Can US companies still sell to Ontario public sector entities?
Only by exception. US businesses must be excluded from new procurements unless they are the only viable source and the need cannot be delayed, or, for services, they commit to at least 90% of required staff in Canada. Approval at deputy minister or CEO level is required.
Does the directive apply to hospitals and universities?
It applies to broader public sector organizations designated under the Broader Public Sector Accountability Act, 2010. Check whether a specific organization is designated before assuming it applies.
What are Vendor of Record arrangements?
Supply Ontario arrangements that let one or more vendors supply OPS and BPS entities for a set period with set terms and pricing. Categories include IT, consulting, and advertising and communications.
Sources
We run enterprise B2B demand generation for teams in Montreal, Toronto, Ottawa and the United States.
