While there's growing public and political interest in Buy Canadian initiatives due to the tariff dispute with the U.S., city staff are recommending Kelowna stick with its current procurement rules.
Staff have completed a review of the municipal purchasing policy, weighing whether the city should give more preference to Canadian or local businesses when buying goods and services. This follows a motion by Councillor Ron Cannan who raised the issue during a meeting in March.
The review found that Kelowna’s existing policy already ensures the majority of contracts go to Canadian companies, many of them based in the Okanagan.
“The City of Kelowna procures the vast majority of its products and services from Canadian firms, and over half from the local region,” the report notes. “The current approach emphasizes value, local experience, sustainability, and competitive pricing.”
Staff examined looked at three options: keeping things as they are, excluding U.S. suppliers from future bids, or giving preference to local and Canadian businesses for lower-cost purchases below certain trade agreement thresholds. That last option might sound appealing, but staff warned it would rarely come into play.
“It is uncommon for vendors to quote identical prices or for reviewers to assign the exact same scores,” the report explained, adding that the “all things equal” scenario would be rare and difficult to manage. Staff also raised concerns about increased costs, possible retaliation from other provinces or countries, and legal complications over how to define a "local" supplier.
As for cutting U.S. suppliers out entirely, staff pointed out that doing so wouldn't violate trade agreements, unlike prioritizing local firms above certain spending thresholds, but it could drive up costs and limit access to specialized goods not available in Canada.
In the end, staff recommend no changes.
“The existing policies and practices at the city are resulting in good value for the local taxpayer, align with trade agreements and best practice thresholds, and result in the vast majority of procurements being awarded to Canadian firms,” the report states.
Council will review the findings at its May 5 meeting.
