When your department needs to buy from a Standing Offer or Supply Arrangement, you're not just "using" that pre-competed instrument—you're actually creating a new, individual contract. That's the resultant contract. It's the legally binding agreement between Canada and the supplier that forms each time you make a call-up or award work under these pre-established vehicles.
How It Works
Here's the thing: a standing offer isn't itself a contract. Neither is a supply arrangement. The Supply Manual is explicit on this point. When you issue a call-up against a standing offer, that action creates a separate contract between your department and the supplier, with terms and conditions drawn directly from the standing offer document itself. Same principle applies to supply arrangements—when you identify a specific need and award a contract under the arrangement, you're creating an individual agreement that incorporates the pre-negotiated terms.
In practice, this means every purchase order or call-up you issue becomes its own discrete contract. If DND calls up laptops from a standing offer three times in a month, they've just created three separate resultant contracts. Each one is independently enforceable. Each must comply with the call-up limitations specified in the original standing offer. The SACC Manual's standard terms (clause set 2005) confirm this mechanism: each call-up forms a contract "based on the call-up, the clauses and conditions of the Standing Offer and any other applicable documents."
The terminology can trip people up. PSPC's Supply Manual glossary defines "resulting contract" more broadly as any contract entered into following a solicitation process like an RFP or RFQ—they don't maintain a separate definition specifically for contracts issued under standing offers or supply arrangements. But in everyday procurement practice across government, you'll hear "resultant contract" used almost exclusively to describe these individual agreements flowing from pre-competed instruments. It's the practical term that distinguishes the master arrangement (which obligates no one to buy or sell anything) from the actual contracts where money changes hands.
Key Considerations
- Each contract stands alone legally. If there's a dispute, performance issue, or need for amendment, you're dealing with that specific resultant contract—not the broader standing offer or supply arrangement.
- Call-up limits matter. The Supply Manual requires that call-ups not exceed specified limitations. Exceed them, and you may find yourself outside the terms of the standing offer entirely, potentially creating compliance issues.
- You still need proper authorization. Just because terms are pre-negotiated doesn't mean anyone can issue a call-up. Only identified users with appropriate spending authority can create these resultant contracts.
- All the usual rules apply. The Government Contracts Regulations and Treasury Board policies don't take a holiday just because you're using a pre-competed vehicle. Each resultant contract must still achieve best value and comply with trade agreements.
Related Terms
Standing Offer, Supply Arrangement, Call-up, Contract Award
Sources
- Supply Manual – Section 3.15.1: Standing offers definition and overview
- Supply Manual – Section 4.10.1: Supply arrangements definition and overview
- SACC Manual – Clause 2005: General Conditions – Standing Offers
Bottom line: understanding that each call-up creates its own contract helps you manage your procurement obligations properly. Track them, authorize them correctly, and treat each one as the legally binding agreement it is.