Province signs $12M food supply deal with Canadian arm of Aramark

The Manitoba government has inked a $12-million food supply contract with Aramark Canada, the Canadian arm of a multibillion-dollar United States firm.

Meanwhile, local businesses have contacted provincial government officials, worried as rumours of a future U.S. deal spread through the industry.

Firms pitched themselves for multimillion-dollar contracts in October 2024. The Manitoba government had released a request for standing offers to cover food supply and delivery to Shared Health, Red River College Polytechnic and other government entities.

The province valued its ongoing contracts — cumulatively — around $45 million, the RFSO document reads.

It’s common for such services to be split into several deals, allowing various groups to get government contracts, representatives from two companies told the Free Press.

Lately, however, rumours have peppered the industry. Firms the Free Press spoke to worried contracts would be amalgamated into one and awarded to an American-headquartered business.

Nearly a dozen companies have contacted the Opposition Progressive Conservatives with concerns, Tory Leader Obby Khan said.

“(Businesses) don’t have full transparency with this government on what’s happening,” Khan said. “That is going to directly affect them when it comes to jobs here in Manitoba.”

Shared Health, RRC Polytech and the Manitoba government source food through multiple suppliers, an unattributed government spokesperson wrote in an email.

Aramark’s agreement covers what was formerly two contracts — one for correctional facilities and one for hospitals, said Public Service Delivery Minister Mintu Sandhu.

He touted $11 million, roughly, saved through the change: “There’s more savings to Manitobans through the way we are doing contracts now.”

When asked about Aramark’s U.S. roots, Sandhu highlighted Aramark Canada’s Ontario headquarters. Roughly 226 Manitobans work for the company, he said.

Manitoba has contracted Aramark to supply food for a regional health authority in the past, a government spokesperson wrote. The company will prioritize goods from Canadian producers, they added.

Aramark deferred comment to the provincial government.

Aramark Canada is listed as a Canadian corporation. Its parent company operates in 15 countries and counts more than 262,000 employees.

“There are local businesses that can do everything (in) this contract,” Khan said. “It’s showing the premier’s true colours of his hypocrisy when he says he’s ‘elbows up’ for Manitoba.”

The New Democratic Party government has promoted buying Canadian, including pledging to source Canadian steel for all its infrastructure projects and introducing a Buy Canadian act. A national ‘buy Canadian’ sentiment has surged amid recent tense trade relations with the United States.

A secondary contractor on the Aramark deal is being worked out — they’ll be a backup supplier. Sandhu declined to give details, citing ongoing negotiations.

Aramark’s contract ends in October 2028. It was competitively sourced, Manitoba’s contract disclosure website reads.

Government procurement is “very underleveraged” among local businesses, said Michael Mikulak, executive director of Food & Beverage Manitoba.

“Public procurement is a powerful lever for governments to be able to invest in local economies,” Mikulak said. “The more that we can leverage that kind of thing, I think, the better.”

Shopping local isn’t always easy for government, Mikulak said: keeping costs low and finding providers who meet capacity and food safety requirements are major considerations.

The province held its first procurement conference Oct. 14. More than 500 businesses attended; sessions covered how to properly bid on provincial contracts, Sandhu said. “Our government has been working hard to get preference to Canadian business, wherever possible.”

gabrielle.piche@winnipegfreepress.com