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 not a contract. Instead, it is an offer from a supplier to provide goods or services at pre-arranged prices under specified terms and conditions. Once a government department or agency issues a call-up against the standing offer, it becomes a contract.
Types of Standing Offers
Public Services and Procurement Canada (PSPC) issues five types of standing offers:
National Master Standing Offer (NMSO): Used by multiple departments or agencies across Canada.
Regional Master Standing Offer (RMSO): Used by multiple departments or agencies within a specific geographic area.
National Individual Standing Offer (NISO): Used by a single department or agency throughout Canada.
Regional Individual Standing Offer (RISO): Used by a single department or agency within a specific geographic area.
Departmental Individual Standing Offer (DISO): Used exclusively by PSPC on behalf of specific departments and agencies.
When Are Standing Offers Used?
PSPC uses standing offers to meet recurring needs for goods or services. They are particularly effective when:
Departments or agencies repeatedly order the same goods or services.
Demand is anticipated but not yet clearly defined.
Standing offers are most suitable for goods or services that can be clearly specified to enable firm pricing. Departments and agencies may also establish their own standing offers.
Benefits of Standing Offers
Standing offers provide several advantages, including:
Faster processing of call-ups.
Reduced paperwork.
Pre-set prices and terms.
Lower administrative costs for the government.
Reduced inventory requirements.
How and When Are Standing Offers Issued?
Standing offers are issued through the standard government contracting process, adhering to policies and trade agreement procedures. You bid on standing offers as you would for any other solicitation.
There is no fixed schedule for issuing standing offers, though many are released at the beginning of the federal fiscal year (April 1 to March 31). Procurement for standing offers often begins months in advance, so it’s essential to monitor Requests for Standing Offers (RFSOs).
Pro Tip: Check the weekly updated Standing Offers and Supply Arrangements data to stay informed.
What Happens Once a Standing Offer Is Issued?
Goods or services under a standing offer are ordered using a call-up document, which makes the standing offer legally binding. Each call-up creates a separate contract.
Important:
There is no contractual obligation for either party until a call-up is made.
Individual call-ups are limited to a maximum dollar value specified in the standing offer.
Multiple Suppliers:
Standing offers can be issued to more than one supplier for the same goods or services, ensuring availability.
Supplier Debriefing
If your bid for a standing offer is unsuccessful, you can request a debriefing. PSPC will explain who won, why, and how you can improve future submissions.
What Are Supply Arrangements?
Supply arrangements are similar to standing offers but are used for more complex or variable procurement needs. Unlike standing offers, supply arrangements allow for the negotiation of terms and conditions for each individual contract.
Key Differences Between Standing Offers and Supply Arrangements:
Standing OffersSupply ArrangementsPre-arranged prices, terms, and conditions.Prices and terms may vary by contract.Call-ups create a legally binding contract.Contracts are negotiated as needed.Suitable for recurring, clearly defined needs.Used for more complex or variable requirements.
Frequently Asked Questions (FAQs)
What Is a Standing Offer in Government Procurement?
A standing offer is a pre-arranged offer from a supplier to provide goods or services at fixed prices. It becomes a contract only when a call-up is issued.
How Do I Bid on a Standing Offer?
Monitor RFSOs published by PSPC and submit your bid through the standard process. Be prepared to meet the specific requirements outlined in the RFSO.
What Are the Financial Limits for Call-Ups?
Each call-up under a standing offer is subject to a maximum dollar value, as specified in the standing offer document.
Can Multiple Suppliers Be Included in a Standing Offer?
Yes. PSPC may arrange standing offers with multiple suppliers for the same goods or services to ensure availability.
What Is a Supplier Debriefing?
If your bid is unsuccessful, a debriefing allows you to understand why and how to improve for future opportunities.
Conclusion
Standing offers and supply arrangements are vital tools in government procurement, streamlining the process for recurring or complex needs. By understanding the differences between standing offers and supply arrangements, and the benefits of each, suppliers can better position themselves to win government contracts. Monitor RFSOs, bid strategically, and request debriefings to improve your chances of success in future opportunities.