Vancouver should not cancel contracts with U.S. suppliers, city manager says in memo

The City of Vancouver’s manager says that despite tariff impact uncertainty and the push to “Buy Canadian,” the city should not terminate any existing contracts it has with suppliers in the United States.

The determination comes after city council directed staff to look into current procurement contracts, capital projects, suppliers, and trade agreement exposures.

In a memo to city council dated March 12, City Manager Paul Mochrie says the city has 55 active contracts with U.S. vendors, “representing a value of approximately $16.5 million, of which 63% is for software systems.”

“Staff do not recommend terminating existing contracts with direct US suppliers, as the spend is currently limited, and largely in areas where there would be operational implications should these contracts be terminated,” Mochrie stated in the memo.

He adds that the city should look at ending any contracts with U.S.-based vendors at the time of contract renewal or extensions.

“Staff recommend that Council defer any decision regarding exclusion of US goods from City procurement processes pending more clarity regarding federal and provincial decisions on non-tariff measures,” Mochrie explained.

Staff also say that the city has substantial financial exposure to retalitory traiffs, via procurement from Canadian suppliers who might source their goods and services from the United States. In the memo, Mochrie says this could eat up an additional $11 million of city taxpayers money.

Vancouver’s staff recommendation to keep current contracts comes in contrast to the City of Surrey. In February, that city cancelled a $740,000 contract with a U.S. company for the manufacturing and delivery of eight mobile, towable bleachers.

Surrey Mayor Brenda Locke said at the time that the city would look for another supplier.

“I think it’s incumbent on all of us on all levels of government to buy Canadian when we can. And in this case, there is an option to buy a Canadian bleachers. So we will be looking at that. But given the comments by the president of the United States, it is time that we absolutely support Canadian products,” said Locke on Feb. 12.

She explained that the city only makes about 0.58 per cent of its purchases from the United States, but every purchase counts.

“It’s a message to the U.S. suppliers that their president has deeply hurt and offended Canadians. And I think it’s also a message to Canadians that we need to spend our money wisely and, wherever we can, buy Canadian products, and certainly do not buy U.S. products,” she added at the time.

With files from Charles Brockman and Dean Recksiedler.