National Master Standing Offer (NMSO)

When your department needs office supplies, IT equipment, or professional services on a recurring basis, you don't want to run a full competitive process every single time. That's where National Master Standing Offers come in. These are pre-competed arrangements that PSPC establishes nationally, allowing any federal department to call up goods or services from pre-qualified suppliers at terms already negotiated. Think of it as a pre-approved supplier list with pricing already locked in.

How It Works

PSPC establishes these arrangements through a Request for Standing Offers (RFSO) process. The resulting standing offer includes two key components: Part 7A outlines the standing offer terms, while Part 7B specifies the clauses that will apply to individual contracts issued against it. Once established, any federal department can issue a call-up against the NMSO without running their own competition.

Call-ups get allocated among multiple suppliers who hold the same NMSO. Individual call-ups typically have dollar limits—for instance, certain supply arrangements cap individual orders at $200,000. The standing offer itself doesn't expire until Canada formally sets it aside, though specific examples like the McKinsey & Company NMSO used by DND did expire on February 28, 2023.

The call-up process is governed by Supply Manual section 7A.8.3. You'll need to follow the justification requirements outlined in sections 3.15.1 and 3.15.2 when using these tools. In practice, this means documenting why you're using the NMSO rather than running an open competition—though the pre-competed nature of the arrangement usually satisfies those requirements.

Key Considerations

• Not all NMSOs are created equal. Some cover straightforward commodities available nationally, while others involve more specialized services. Always review the specific terms and conditions before assuming an NMSO fits your requirement.

• Indigenous procurement requirements still apply. Supply Manual Annex 9.4 sets out the Procurement Strategy for Indigenous Business, and you may need to consider whether a set-aside approach is more appropriate than using an existing NMSO.

• Dollar thresholds matter. Just because an NMSO exists doesn't mean it covers the full value you need. Check the maximum call-up value specified in the standing offer before you commit to using it.

• The non-competitive justification sections (3.15.1 and 3.15.2) in the Supply Manual become relevant when you're explaining why you used a sole-source NMSO or chose this vehicle over other procurement strategies.

Related Terms

Standing Offer, Supply Arrangement, Call-up, Request for Standing Offers (RFSO), Task Authorization

Sources

• Supply Manual - Public Services and Procurement Canada (Sections 3.15.1, 3.15.2, 7A.8.3, and Annex 9.4)

• National Master Standing Offer (NMSO) - PSPC Acquisitions Branch

• A Guide to Federal Government Procurement

If you're dealing with recurring needs across multiple departments, check whether an NMSO already exists before building your own procurement from scratch. Just make sure the terms actually fit your requirement.