City of Ottawa seeking ‘creative solutions’ to tariff impact on purchases

A file photo of part of the exterior of Ottawa City Hall. Photo by Jean Levac /POSTMEDIAArticle content

City staff are exploring “creative solutions” to mitigate the impacts of tariffs on Ottawa’s supply chain and awarding contracts to more local and Canadian-based vendors.

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The city’s supply-services department awarded $2.35 billion in contracts in 2024, which included all purchases equal to or over $25,000 within its authority, along with purchases approved by council, the Ottawa Public Library Board and the Ottawa Police Services Board.

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Of those contracts, 99 per cent were awarded to Canadian entities, including 91 per cent to local vendors, chief procurement officer Joanne Graham said in a May 6 presentation to the finance and corporate service committee.

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Councillors were cautioned about the uncertainty in “evolving world of tariffs” on the same day newly-elected Prime Minister Mark Carney met in Washington with U.S. President Donald Trump.

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Graham told the committee the city’s procurement staff were “monitoring daily” the impacts tariffs were having on individual vendors and scrutinizing existing contracts to protect against “profiteering” — or attempts by vendors to inflate contracts by claiming exaggerated tariff expenses.

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Coun. Steve Desroches warned existing and prospective vendors, “Don’t rip off the City of Ottawa.”

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A mere 0.08 per cent of contracts awarded in 2024 went to U.S. suppliers, Graham said, and staff reviewed those five contracts to confirm there were no other Canadian suppliers available to meet the city’s technical requirements.

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Procurement staff are employing several strategies to minimize the economic risks posed by the tariffs.

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Graham said a focus on sustainability as a “best-value” priority “allows the city to take into consideration local community impact in the award of our contracts.”

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In January, council approved a new option to seek three quotes for purchases up to $125,000 and requiring one quote from a local supplier. The process is designed to “promote local purchasing and staff familiarity with local supply chains.”

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The department has also updated its standard procurement protocols to “focus on de-risking supply chains and supporting local vendors,” Graham said.

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Every new competitive solicitation now includes language that states the city “is seeking to minimize tariff impacts associated to this or any related solicitation … This may include altering specifications to include products with increased Canadian content or non-tariff alternatives.”