Over the past few months, many of us have begun to reflect on the kind of recovery we wanted. The calls for creating a greener, more sustainable and more innovative economy are persistent. They amplify long-standing pleas for an improvement of our environmental and social record.
Many have proposed new green policies or initiatives, quite appropriately, starting with the Plan for a Green Economy.
However, an essential solution already exists within our ministries and municipalities. This tool accounts for more than 13% of Canada’s GDP: public procurement.
Rethinking the lowest-bidder rule
In public procurement, the instinct of many public decision-makers is to start from the premise that we must follow the lowest-bidder rule, for reasons of cost control, system integrity, or even to respect the spirit of international trade agreements that prohibit explicitly favoring local firms.
Thus, a ministry that receives two service bids, one for a traditional and cheaper product, the other for an innovative or green product but more expensive to acquire, is obliged to select the first offer. Yet, we can and must do otherwise!
A study released last September by the Montreal Metropolitan Chamber of Commerce and Propulsion Québec demonstrates that we can integrate into our calls for tender criteria that reflect our desire to achieve environmental objectives or to make more room for innovation, in full respect of international trade agreements.
A question of political will
To do this, to do this, the first ingredient is a clear and determined political will. This will must be translated into a concrete gesture: the Treasury Board must abandon the systematic choice of the lowest bidder. Like several states around the world, our governments must favor the most economically advantageous offer, which offers the best value for their investment.
The government has shown an openness to move in this direction. That’s good news. We look forward to seeing this intention translated into concrete action.
Review the criteria
The study shows that public buyers have at their disposal other means that do not require major legislative changes. By regulation, it is possible to modify the framework and the content of calls for tender.
We must allow criteria to go beyond the acquisition cost alone to instead consider the life-cycle cost or the total cost of ownership.
We must include environmental and social performance criteria in calls for tender, which, incidentally, has the effect in several regions of the world of favoring the local economy.
We must allow public bodies to consult the market even before launching calls for tender, for example during the assessment of needs.
Ultimately, we will have to put in place a mechanism for the systematic evaluation of public procurement, to ensure that it encourages the achievement of government objectives, and this, while respecting the full integrity of practices.
The study shows how our companies can concretely contribute to meeting our environmental and societal objectives, if governments give them the opportunity. And above all, how achieving these objectives can become the engine of a sustainable economic recovery for Quebec.
Our businesses are ready to contribute
Quebec has dozens of companies that work in the fields of electric and smart vehicles, charging infrastructure, mobility services, etc. Their offerings are competitive and relevant to meet our needs, but they are often excluded because of regulatory barriers that are no longer justified.
Carrying out the proposed changes will allow these companies to provide Quebecers with their technologies and services rather than having to export their expertise because of closed doors here.
We must make the most of what trade agreements allow by requiring the final assembly of rolling stock in Quebec and by ensuring we reach, at minimum, 25% Quebec content. We also invite governments to examine the possibility of aiming for higher local content targets, as authorized in the Comprehensive Economic and Trade Agreement (CETA).
In the long term, this will allow us to reduce our GHG emissions and strengthen our green economic sectors. In the short term, it will help get our economy back on track. The ball is in the court of our public decision‑makers.
In the meantime, industry players as well as the general public are invited to mobilize for the sector’s recovery by participating in the Strategic Forum on Transport and Logistics, held as part of the movement Let’s Relaunch MTL. This virtual event, co-developed by the Montreal Metropolitan Chamber of Commerce, Propulsion Québec and CargoM, will take place on November 20 starting at 8 a.m..
This text was already published on November 19, 2020 in La Presse.
