Standing Offers/Supply Arrangements

Standing Offers and Supply Arrangements are pre-established procurement frameworks that let government buyers purchase commonly needed goods and services without running a full competitive process each time. According to the Supply Manual Chapter 5, these mechanisms were designed specifically to reduce costs for items purchased repeatedly across government while ensuring timely procurement and good value for taxpayers.

How It Works

Here's the thing: these aren't contracts until you actually place an order. A Standing Offer sets out predetermined prices, terms, and conditions through an initial competitive process. When a department needs the goods or services, they issue a "call-up" against the SO—that's when the contract actually forms. Treasury Board made Standing Offers mandatory for 10 specific commodities back in April 2005. Those requirements still apply today across federal departments and agencies.

Supply Arrangements work differently. They establish a pool of pre-qualified suppliers and set the general terms, but they don't lock in prices. When you need something, you issue a call-up and the pre-qualified suppliers submit bids. This approach gives you flexibility when market conditions shift or when you want suppliers to propose innovative solutions. ProServices is a good example—PSPC explicitly notes it's a Supply Arrangement, not a Standing Offer, which affects how departments must engage with it.

The practical difference matters. Standing Offers give you price certainty and speed—you know exactly what you'll pay before you order. Supply Arrangements maintain competition at the call-up stage, which can drive better value but takes more time. The Government of Canada Supply Manual states that both frameworks aim to reduce administrative burden, but you need to choose the right tool based on whether price stability or ongoing competition serves your needs better.

Key Considerations

• No commitment until call-up: Suppliers can't count on guaranteed volumes, and you're not obligated to purchase anything. The Standing Offer or Supply Arrangement simply gives you the option to buy when needed.

• Mandatory use requirements: If a mandatory SO exists for what you're buying, you must use it. You can't just run your own competitive procurement because you prefer a different approach or supplier.

• Standing Offer Authority vs. Contracting Authority: These are distinct concepts defined in Part 5.A., clause 5.1 of the RFSO template. Understanding who holds each authority in your organization prevents processing delays.

• Market responsiveness varies: Standing Offers lock in pricing for their duration, which protects you from price increases but might mean you miss out if market prices drop. Supply Arrangements let suppliers adjust proposals to reflect current conditions.

Related Terms

Request for Standing Offer (RFSO), Call-up, Master Standing Offer (MSO), National Master Standing Offer (NMSO), Task Authorization, Contracting Authority

Sources

• Supply Manual - Chapter 5: Methods of Supply Standing Offers and Supply Arrangements, Office of the Procurement Ombudsman

• Government of Canada Supply Manual, CanadaBuys

• Procurement Practices Review - Chapter 4: Mandatory Standing Offers, Office of the Procurement Ombudsman

Before issuing a call-up, verify whether you're working with a Standing Offer or Supply Arrangement—the process and your obligations differ significantly between the two.