City of Ottawa focusing on ‘de-risking’ supply chain to avoid risks of tariffs

The sign outside City Hall in Ottawa (CTV News Ottawa)

The City of Ottawa has updated its procurement protocol to focus on “de-risking” the supply chain and encouraging local bids, as it works to mitigate any tariff threats amid the ongoing trade war between Canada and the United States.

The finance and corporate services committee received an update on the city’s efforts to address any tariffs on city goods and services, while also working to buy from local and Canadian businesses.

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City Treasurer Cyril Rogers told councillors that the potential impacts of the tariffs are “far-reaching, depending on the goods we are purchasing.”

“Some of the impacts will be ongoing and we don’t know, because the integration of the supply chain – in terms of something as simple as nuts and bolts that end up in a finished product could be taxed several times before that finished product is purchased,” Rogers said.

“Even though 99 per cent of our purchasing is within Canada, it doesn’t mean that 99 per cent of our goods that we purchase are exclusively manufactured, start to finish, in Canada.”

In February, councillors approved a motion for the city to prioritize Canadian products and services, as U.S. President Donald Trump threatened to impose tariffs on Canadian goods. The motion also called on staff to ensure the city’s procurement bylaws are “sufficiently flexible” to support buying local and Canadian goods and services.

Staff say 91 per cent of contracts awarded in 2024 were to businesses in the Ottawa area, and eight per cent of goods and services are coming from businesses across Canada.

“About 99 per cent is purchased through Canadian entities and a very small component is what we deem to be international. That’s in the context where if I look at something like Microsoft – obviously, Microsoft is a big purchaser we use for our software systems. They are a Canadian entity, but they’re also a U.S. entity,” Rogers told councillors.

“When we look at core construction side of the equation – steel, aluminum. A lot of that is mainly purchased and manufactured within Canada. Different components of steel could be sourced out of the U.S., but our main steel sourcing will be within Canada.”

Chief Procurement Officer Joanne Graham says the city’s procurement bylaws now have a focus on “derisking supply chain and supporting local.”

“Every new competitive solicitation includes the following languages, ‘The City of Ottawa 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-tariffed alternatives. The City welcomes any questions or feedback from bidders, which may assist the City in achieving the goal of reducing the negative impacts of tariffs on this solicitation,’” Graham said.

The city is also looking at “proactively designing procurements” to “derisk” supply chains for goods and services.

Graham said the procurement bylaw was updated in January for the city to seek three quotes for purchases up to $125,000.

“This three-quote process will promote local purchasing and staff familiarity with local supply chains, as one of the requirements of this process is to seek a quote from a local supplier,” Graham said.

Graham says staff are “monitoring high impact agreements,” with vendors and staff looking at “creative solutions.”

The City of Ottawa is encouraging people to buy local, and launched a tariff toolkit on its website to explain the potential impacts of tariffs on supply chains and encouraging people to shop local.

The U.S. has put in place a 25 per cent tariff on all goods, and a 10 per cent tariff on energy and potash that isn’t covered under the Canada-United States-Mexico Agreement. Canada responded with a 25 per cent tariff on non-CUSMA complaint vehicles and additional fees on $60 billion in steel and aluminum products, juice, spirits, computers, apparel, and more.

Councillors received an update on the impacts of the Canada-U.S. trade tariffs on the day Prime Minister Mark Carney travelled to Washington for meetings with Trump.