Request for Standing Offer (RFSO)

A Request for Standing Offer (RFSO) is a solicitation used to obtain standing offers from suppliers. The Government of Canada uses it for recurring requirements, where departments or agencies repeatedly order the same goods or services. Suppliers that meet the evaluation criteria in the RFSO become pre-qualified suppliers and holders of standing offers. The details are set out in the Government of Canada guidance on supplying services.

A standing offer is an offer to provide specified goods or services at pre-arranged prices and under set terms when they are required. It is not a contract until the government issues a call-up. In French, federal documents call an RFSO a Demande d'offre à commandes (DOC).

RFSO, standing offer and call-up: three separate steps

The three terms describe different stages of the same method, and mixing them up leads to wrong expectations about revenue.

• RFSO: the competitive solicitation. Suppliers respond to it with offers.
• Standing offer: the resulting offer from a qualified supplier to provide goods or services at pre-arranged prices and terms.
• Call-up: the authorization a buyer issues to a pre-qualified supplier as notice to deliver the goods or services. This is the point at which a contract exists.

Issuing an RFSO does not commit the government to authorize use of a standing offer or to buy anything. A sample federal RFSO states this directly. A supplier can hold a standing offer and receive no call-ups.

What a federal RFSO document contains

Federal RFSOs follow a consistent structure. They typically include sections for general information, offeror instructions, offer preparation, and evaluation procedures and basis of selection. Attachments and annexes follow. The RFSO for air purifiers and air filters shows this layout, with offer-preparation instructions and an explanation of how offers are evaluated and selected.

The offer-preparation instructions tell suppliers what to submit and in what form. The evaluation procedures set out the criteria an offer must meet to qualify. Together they define how a supplier becomes a standing offer holder.

Who issues RFSOs and where they appear

Public Services and Procurement Canada (PSPC) explains that a buyer may issue an RFSO to purchase goods or services repetitively. Suppliers submit offers against the stated requirements and evaluation criteria. Successful suppliers agree to provide the goods or services at a fixed or pre-arranged price for a specified period. PSPC describes this in its guidance on bidding.

Federal RFSOs are published as tender notices on CanadaBuys. A federal RFSO example requires suppliers to submit offers to the identified bid-receiving unit by the deadline in the solicitation.

RFSOs also cover commodity supply. PSPC lists standing-offer arrangements for approved alcohol-screening devices and remote-controlled boats among its collaborative procurement commodities.

What an RFSO means for a supplier

Treat an RFSO response as a qualification exercise, not a sale. Follow the offer-preparation instructions exactly, address every stated evaluation criterion, and submit through the specified channel before the closing deadline. A supplier that qualifies agrees to provide its good or service at a fixed price over the specified period, so price the offer for the full term.

Qualification does not guarantee an order. Revenue starts only when an authorized user issues a call-up, so plan for demand that arrives as and when departments need the goods or services.