Standing Offers and Supply Arrangements (SOs/SAs)

Standing Offers and Supply Arrangements (SOs/SAs) are Government of Canada procurement instruments for goods and services that departments buy repeatedly. A standing offer is a supplier's offer to provide specified goods or services at pre-arranged prices and under set terms and conditions, when and if the government asks for them. A supply arrangement is a method of supply that sets predetermined conditions for bid solicitations and the contracts that result from them.

Neither instrument is a contract on its own. A standing offer becomes a contract only when the government issues a call-up against it, and a supply arrangement leads to a contract only after a supplier bids on a specific requirement and the government accepts that bid. Both are administered or supported by Public Services and Procurement Canada (PSPC), and the CanadaBuys page on standing offers and supply arrangements sets out the basics for suppliers.

How a standing offer works

A standing offer suits goods or services that can be defined and priced in advance, where departments order the same items again and again. The government solicits these offers through a Request for Standing Offer (RFSO). A supplier whose offer is accepted agrees to maintain the stated prices, terms and conditions and to accept call-ups in line with the standing offer.

The standing offer does not bind the government to buy anything. The contractual relationship begins when an authorized user, known as an identified user or client department, issues a call-up. That call-up is the government's acceptance of the offer for the particular purchase, and it creates the contract. More detail appears in the PSPC guidance on supplying services to the government.

How a supply arrangement works

A supply arrangement is used when goods or services are bought regularly but the requirements contain variables that make a standing offer unsuitable. The government establishes the arrangement through a Request for Supply Arrangement (RFSA). Suppliers that meet the evaluation criteria become pre-qualified suppliers and holders of supply arrangements.

That pool of pre-qualified suppliers is the starting point for later competitions. When a client department has a specific requirement, it solicits bids from some or all eligible suppliers under the arrangement and awards the resulting contract through that competitive process. Signing the arrangement does not legally bind either party, and pre-qualification does not guarantee work.

Key terms to know

• RFSO: the solicitation used to establish a standing offer.
• RFSA: the solicitation used to establish a supply arrangement and pre-qualify suppliers.
• Call-up: the government's acceptance of a standing offer, which creates a contract for that purchase.
• Identified user or client department: an authorized federal department, agency or other organization permitted to use the instrument.

The Supply Manual glossary on CanadaBuys is the reference for the official wording of these terms.

Mandatory use for professional services

In some cases departments must use these instruments. For ProServices, client departments acting on their own behalf, and PSPC when it handles a requisition, must use the mandatory standing offers and supply arrangements, subject to stated exceptions. The ProServices overview from PSPC explains this requirement. For suppliers in that category, holding a place on the relevant instrument is the route to federal work.

What it means for a supplier bidding on Canadian public contracts

Qualifying under an RFSO or RFSA is only the first step. A supplier must meet the evaluation requirements, then comply with the clauses and conditions built into the standing offer or supply arrangement and any resulting contract.

• With a standing offer, keep your prices and terms in force and accept call-ups as the offer requires.
• With a supply arrangement, watch for and respond to individual bid solicitations issued under it.
• Do not treat either instrument as guaranteed revenue. No purchase is promised simply because you hold one.