Conditional Limitation

Here's the thing: "Conditional Limitation" isn't actually a term you'll find in the Supply Manual or standard Canadian procurement documentation. What you're likely encountering is either a Supply Arrangement or Standing Offer—the mechanisms that actually establish pre-qualified supplier lists for federal contracting. These tools let departments access pre-approved vendors without running a new competitive process each time.

How It Works

Supply Arrangements, detailed in Chapter 4 of the Supply Manual, allow PSPC and other departments to maintain a list of qualified suppliers for specific goods or services. When you need something covered by the arrangement, you issue a call-up against it. No new RFP required. The arrangement itself is competitively established upfront, satisfying trade agreement obligations under instruments like the Canadian Free Trade Agreement, which explicitly permits "standing arrangements using a procurement method that is consistent" with procurement requirements.

There are practical limits on how these work. Under Competitive Method 1, the total value of a Supply Arrangement cannot exceed $105,700,000. Anything over $1 million requires additional review before proceeding. The pre-qualification process establishes which suppliers meet your technical and financial criteria, and then call-ups against that arrangement can happen as departmental needs arise—whether that's DND ordering IT equipment or SSC procuring cloud services.

You might also encounter "conditional" language in the context of set-asides. The Office of the Procurement Ombudsman describes conditional set-asides for Indigenous procurement, where a requirement is initially restricted to Indigenous businesses but can revert to open competition if there's insufficient capacity. That's about bidder eligibility, not about maintaining a standing list of suppliers—completely different thing.

Key Considerations

• The term "Conditional Limitation" doesn't appear in official procurement policy documents. If someone uses this language in a contract or briefing, clarify whether they mean a Supply Arrangement, Standing Offer, or something else entirely.

• Supply Arrangements require initial competition to establish the pre-qualified list. You can't just hand-pick your favorite suppliers and call it conditional anything—trade agreements still apply to the setup phase.

• Value thresholds matter. Once you're contemplating arrangements over $1 million, expect scrutiny. Above $105.7 million for Competitive Method 1, you're looking at different procurement approaches altogether.

• Don't confuse standing supplier arrangements with conditional set-asides for Indigenous procurement. They serve different policy objectives and operate under different authorities.

Related Terms

Standing Offer, Supply Arrangement, Eligible Suppliers

Sources

• Supply Manual - Chapter 4: Standing Offers and Supply Arrangements

• Canadian Free Trade Agreement - Chapter 5: Government Procurement

• Procurement Set-Aside Programs - Office of the Procurement Ombudsman

If you encounter "Conditional Limitation" in procurement documentation, ask for clarification on what mechanism is actually being used. Precise terminology prevents confusion when you're working with complex procurement requirements and multiple potential vendor pools.