Standing Offers and Supply Arrangements: What You Need to Know
Discover how standing offers and supply arrangements work, when they are used, and what they mean for you as a supplier. This guide answers questions such as "What is a standing offer in government procurement?" and "How do supply arrangements differ from standing offers?"
What Are Standing Offers?
A standing offer is a supplier’s agreement to provide goods or services at pre-set terms. It is not a contract until a government department issues a call-up. Types include:
National Master Standing Offer (NMSO)
Regional Master Standing Offer (RMSO)
National Individual Standing Offer (NISO)
Regional Individual Standing Offer (RISO)
Departmental Individual Standing Offer (DISO)
When Are Standing Offers Used?
They’re used for recurring purchases where the requirements are well-defined. Benefits include faster procurement, reduced paperwork, and fixed pricing.
How Are Standing Offers Issued?
Through regular solicitations (RFSOs), often released early in the fiscal year. Once a call-up is issued, it becomes a binding contract, usually with a dollar limit.
What Are Supply Arrangements?
Supply arrangements are for more complex or variable needs. They pre-qualify suppliers but allow pricing and terms to be negotiated per contract.
Key Differences
Standing Offers | Supply Arrangements |
|---|---|
Fixed terms and pricing | Negotiable per contract |
Call-up creates a contract | Contract created at time of negotiation |
For clearly defined needs | For flexible or evolving needs |
Frequently Asked Questions
What is a standing offer? A non-binding offer until a call-up is made.
How do I bid? Watch for RFSOs and follow the submission guidelines.
Can multiple suppliers be selected? Yes, to ensure supply coverage.
What is a supplier debriefing? An explanation of why your bid was unsuccessful and how to improve.
Conclusion
Standing offers and supply arrangements are essential tools in federal procurement. Understanding their differences and bidding strategies will help suppliers position themselves for success in government contracting.