The Provincial Government continues to implement measures to alleviate the pressures facing the business community during the current public health emergency. With this in mind, a local preference provision has been added to the Public Procurement Regulations. This provision will mandate an allowance of ten per cent for local suppliers for all procurements, to the maximum permitted under the Canadian Free Trade Agreement.

These thresholds to which local preference will be added will be as follows:

• Municipalities, local service districts, academic institutions, school districts and health authorities:
  • $105,700 (goods);
  • $105,700 (services); and
  • $264,200 (construction)

• Crown corporations:
  • $528,300 (goods);
  • $528,300 (services); and
  • $5,283,200 (construction)

• Departments, agencies and all other public bodies:
  • $26,400 (goods);
  • $105,700 (services); and
  • $105,700 (construction)

In addition to this preference provision, the thresholds at which open calls for bids are required have been increased to allow for more opportunities to direct business to local suppliers through a limited call process.

The procurement process in Newfoundland and Labrador affects all public bodies including municipalities, health authorities, school boards, academic institutions and government departments and agencies, as well as businesses throughout the province. Under the previous procurement legislation, the thresholds provided in section 5 of the Regulations were $10,000 for goods, $50,000 for services (except architectural and engineering services), and $100,000 for construction for all public bodies.

The new increased thresholds at which an open call for bids is required are as follows:

• Municipalities, local service districts, academic institutions, school districts and health authorities:
  • $105,700 (goods);
  • $105,700 (services); and
  • $264,200 (construction)

• Crown corporations:
  • $264,200 (goods);
  • $264,200 (services); and
  • $264,200 (construction)

• Departments and agencies and all other public bodies:
  • $26,400 (goods);
  • $105,700 (services); and
  • $105,700 (construction)

Increasing thresholds provides flexibility for a more efficient procurement process, and also provides additional flexibility to direct business specifically to local enterprises.

Additionally, government has also implemented a short-term increase to thresholds for engineering services for municipalities and local service districts from the current $100,000 to $264,200. This allows this year’s municipal construction projects to begin more quickly, to maximize support for construction and employment opportunities throughout the province.

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“The business sector drives the economy of Newfoundland and Labrador, and we have been working diligently to find ways to help ease the pressures they are facing during the COVID-19 pandemic. Increasing thresholds and implementing a local preference provision enhances the flexibility to procure a number of items locally, thereby supporting our local economy.”
Honourable Tom Osborne
Minister Responsible for the Public Procurement Agency

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Learn more

Ministerial Statement – New Procurement Act Now in Effect

News Release: Additional Provisions of Public Procurement Act Now in Effect

Media contact
Krista Dalton
Service NL
709-729-4748, 685-6492
kristadalton@gov.nl.ca