New city policy will make community benefits a part of procurement process

Toronto:- Companies wishing to do business with the City of Toronto need to “step up” and do their part to provide benefits to the community if they are serious about winning contracts going forward, Mayor John Tory says.

Tory made the comment at a press conference held to promote the city’s new social procurement program.
The program, which was approved by city council in May, aims to ensure that more companies that are granted City of Toronto contracts are also providing social benefits, such as employment, apprenticeship and training opportunities for young people or those living in poverty.
The policy sets a timeline of 2018 to ensure that one-third of all procurement contracts in excess of $5 million are given to companies that are providing community benefits.
Furthermore, the policy states that at least one out of three finalists for contracts of less than $50,000 should be a diverse supplier.
In order to be considered a diverse supplier a business must be certified by an organization like the Canadian Aboriginal and Minority Supplier Council or the Canadian Gay and Lesbian Chamber of Commerce.
The city hands about $1.8 billion in contracts annually.
“It may just be a few jobs now but think about all the opportunities that will come from $1.8 billion in purchasing when we sit down with people one by one by one and say we want you to step up and we expect you to step up,” Tory told reporters Wednesday. “The benefits will be substantial.”
Tory admitted that the city has acted too slowly in introducing a social procurement policy but he said that now that one is in place he is hopeful that businesses begin approaching the city with community good in mind.
The program is part of the city’s 20-year poverty reduction strategy.
“I am asking today that Toronto business approach us not just to bid on our business but approach us with a view in mind that says we are going to seek out participation in these programs,” Tory said. “It is not about a handout, it is about partnerships that can be formed.”
The city plans to launch a publicity campaign in the fall to make more businesses aware of the new social procurement program.