ottawa looking for 'creative solutions' to avoid trump tariffs
the chief procurement officer told a council committee staff were "monitoring daily" the impacts that tariffs were having on individual vendors and scrutinizing existing contracts.
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a file photo of part of the exterior of ottawa city hall.
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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.
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.
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.
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.
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.
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.
procurement staff are employing several strategies to minimize the economic risks posed by the tariffs.
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.”
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.”
the department has also updated its standard procurement protocols to “focus on de-risking supply chains and supporting local vendors,” graham said.
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.”
the clause “invites the vendor community to offer alternative solutions to supply-chain risks,” graham said.
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she cited one “small, but real-world example” in a recent contract that was awarded prior to the tariff discussions, where a small portion of the deal included a piece of equipment only produced in the u.s.
“after the introduction of tariffs, the vendor pro-actively approached the city with an alternative coming from europe, (which) was evaluated by operations and was approved as an equivalent.”
that “small adjustment” removed possible tariff impacts to the contract and will avoid any related cost increases, graham said.
staff are also meeting regularly with local industry leaders, including the national capital heavy construction association, the ottawa construction association and the association of consulting engineering companies, where tariff discussions are “a standing agenda item.”
the panel meets to discuss “new opportunities and creative solutions to tariff impacts,” graham said, and seeks to “proactively design procurements to de-risk supply chains.”
mayor mark sutcliffe and gatineau mayor maude marquis-bissonette issued a joint statement in february calling for a review of interprovincial trade barriers, in part to “respond to the threat of tariffs.”
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sutcliffe has also convened an economic council “to share concerns, best practices and resources with a view of mitigating local impacts.”
supply-services staff have attended those meetings “to ensure we can continue to cultivate creative solutions to this evolving issue,” graham said.
the international trade landscape remained “relatively stable for most of 2024 due largely to the existence of the united states-mexico-canada agreement (usmca),” according to the staff report.
trump’s election in november “increased concerns about potential drastic changes to the agreement as tariff implications have been in wide discussion,” the report states. “the potential for changes to the usmca are possible and are likely to be present before the scheduled review in 2026.”
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