Last Revised: March 21, 2025
On March 5, 2025, Premier Moe announced a number of actions in response to the tariffs, imposed by the United States (US) administration, as it relates to capital projects and procurement. These actions include prioritizing Canadian suppliers in procurement, with the goal of reducing or eliminating US procurement.
SaskBuilds and Procurement is implementing changes in procurement to achieve this goal. Guiding principles, an exception process and criteria, questions and answers and other items have been developed in response to the actions outlined.
This means that all purchases that employees make must prioritize Saskatchewan and Canadian suppliers, products and services and employees must avoid any purchases from US companies or of US products. If a US purchase is necessary, regardless of the dollar amount, employees must follow the exception process page, complete an exception form, route it for approval and retain the documentation.
For Capital projects in process, contractors will be asked to report on US products and reduce that amount. Each ministry will work with contractors and suppliers to gather information to implement this direction.
Contact Info
Employees can contact Procurement Management Division at purchasing@gov.sk.ca.
Guiding Principles
1. Prioritize Non-US procurement:
Promote the use of Canadian or non-US goods and services wherever feasible.
Explore alternative suppliers to reduce reliance on US products.
2. Protect local businesses and the Saskatchewan economy:
Ensure that Saskatchewan-based businesses are not unduly harmed.
Maintain existing supply chains where alternative sourcing is impractical or cost-prohibitive.
3. Ensure legal and contractual compliance:
Honour existing contracts and standing offers to avoid legal or financial penalties.
Incorporate future contract clauses to account for procurement shifts.
4. Case-by-case decision making:
Assess each case involving potential US suppliers individually, considering economic impact, feasibility, and project impact (scope, schedule, budget).
Provide flexibility to adapt to unique project and supplier constraints.
5. Provide certainty and solutions amid volatility:
Ensure stability and predictability in procurement policies.
Focus on practical, adaptable solutions to address evolving challenges.
Questions and Answers
What is the definition of a US business?
Canadian business is:
- Fully Canadian headquartered, majority owned and operated; or
- If international headquarters, then have 50 or more employees (FTEs) in Canada; or
- If international headquarters but fewer than 50 total international employees, then have 51% of global workforce in Canada.
US business is:
- Is not a Canadian business as defined above and is headquartered in the United States. This working definition recognizes international businesses with significant workforce in Canada.
What is the definition of a US product or service?
US product is:
- Any product, material or supply that is Made in USA or Product of USA; and
- Was not physically in Canada as of March 5, 2025.
US service is:
- Provided by a natural person in the United States;
- If provided by more than one natural person, the service will be considered a US service if a minimum of 70 per cent of the total tender price for the service is provided by natural person based in the United States.
Where can I find the definitions of items Made in USA and Product of USA?
Guidance on US labelling can be found at the US Federal Trade Commission website: https://www.ftc.gov/business-guidance/resources/complying-made-usa-standard.
What changes are being made to procurement processes?
A new clause has been developed to incorporate into competition documents for upcoming procurements.
Evaluation criteria will be added to RFx documents with weighting related to the amount of US-based content.
When will SaskBuilds and Procurement post new procurement competitions?
New procurements will begin to be posted shortly with the new wording and criteria included.
How will SBP handle competitions that have been evaluated but not yet awarded?
Procurement Management will review competition ready to be awarded to validate that products and services are not sourced from the US. Clarification requests may be sent to suppliers. Consideration may be given if US-based product is already in-stock in Canada or alternative products or sources have been explored and are not available. Approval will be obtained prior to awarding any competition with US supplies.
If competitions are already posted, can we continue through the procurement process?
Competitions can remain posted and continue through evaluation. Clarifications or addendum may be required to request suppliers declare US-based materials or labour in their submissions.
Can existing standing offers be extended?
Standing offer extensions will be exercised when we verify where the product is sourced.
If a product is sourced from the US, efforts will be undertaken to determine if sourcing is available in Canada. Approval is required prior to proceeding with renewal.
How will we get proponents to declare US content in their procurement submissions?
Procurement templates will be updated to incorporate declaration of product and service sourcing. This will include clarification on country of origin for anything originating in the US, and an estimated cost value along with a summary of what actions they have taken to source outside of the US.
What is the approval process for exceptions where procurements with US businesses or services and supplies are recommended to be awarded?
SBP has created a process, form and criteria for ministries to put forward US procurement exceptions for review and approval.
What criteria will be considered when reviewing procurement exceptions for approval?
Criteria for exceptions will include: efforts to source in Canada or outside of the US; urgency of the required supply or service; quality and cost comparison to other options; any other risks of not making the purchase; etc.
What is the direction for procuring items under-threshold?
The Government Procurement Policy states “Within the context of best value, public entities should make every effort to source from a Saskatchewan supplier for procurements below established thresholds in trade agreements provided there is sufficient value, capabilities and skills in Saskatchewan relative to the business needs of the Government of Saskatchewan.”
If there is a need to source from the US, Ministries would request an exception, provide rationale and seek approval. Visit Taskroom for guidance.
How will optional contract extensions with US businesses currently under contract be handled?
SBP will develop a process to review contract extensions based on the new procurement direction and put forward exceptions for approval, if necessary.
Will Saskatchewan businesses be able to sell their existing US product inventory?
Saskatchewan’s approach will ensure that Saskatchewan-based businesses are not unduly harmed. If a Saskatchewan business was holding inventory of US products as of Mar. 5, 2025, the Government of Saskatchewan will not consider that a US product.
Can I make purchases from big companies like Amazon Canada?
If items are shipped directly from a U.S. address or priced in U.S. dollars, they may be considered as procured from a U.S. supplier and should be avoided. If the product is labelled as “Made in the USA”, it is a U.S. product and should be avoided. In such cases, it’s advisable to seek alternatives from Canadian suppliers or complete an exemption form. However, if the purchase is made through Amazon.ca and the transaction is processed in Canadian dollars with fulfillment from Canadian warehouses, it aligns with the definition of procuring from a Canadian business.
How can we ensure compliance with Saskatchewan’s procurement policies when making purchases online?
To ensure compliance:
• Verify the Seller: Ensure the product is sold and shipped by a Canadian-based seller.
• Check Fulfillment Details: Confirm that the item is fulfilled from a Canadian location.
• Currency Consideration: Ensure transactions are processed in Canadian dollars.
• Documentation: Maintain records of transactions to demonstrate adherence to procurement policies.
Projects in Process / Future Projects
What is the definition of a future project?
Projects that have not been funded for design or construction.
What is the definition of a project in process?
Projects that have been funded for design or construction through Budget 2024-25 or earlier.
When will paused projects proceed?
Projects are proceeding and will be posted once documents are complete and approved.
Is the Government of Saskatchewan cancelling projects currently under construction?
No. Projects under construction will proceed as planned. Contractors will be required to report on and use best efforts to reduce or eliminate the amount of US products.
Why aren’t we cancelling projects under construction?
Cancelling a project already under construction can result in financial losses, lead to legal disputes, and create logistical complications for future work.
What is the Government of Saskatchewan doing to reduce US products on its construction projects?
- Contractors will be asked to begin reporting a list and dollar value of US products used on the project.
- Contractors will be asked to use their expertise of the supply chain to present Canadian and non-US alternatives to owners in order to greatly reduce or eliminate the use of US products.
Should I get legal advice on next steps?
- Every project has its own contract and risks. It will be appropriate in many contexts to seek legal advice (as is regular business on projects).
What will contractors be required to report on regarding the use of US products?
Contractors will be asked by the Owner (i.e. contract signatory) to provide a list and dollar value of US products and services used and planned on the project. Contractors are not expected to trace the origin of individual parts of an assembled product.
For the purposes of reporting, a US product is any product, material or supply that is Made in USA or Product of USA, regardless of its date of entry to Canada.
Does it matter where in the design process a project is to implement a change?
Yes. The earlier a project is in the design phase, the easier and less costly it is to make changes. As the project progresses, changes become more impactful and expensive.