Standing Offers and Supply Arrangements

Eligibility Criteria

Summary

Standing Offers

A standing offer is not a contract. It is an offer from a potential supplier to provide goods and/or services at pre-arranged prices, under set terms and conditions, when and if required. No contract exists until the government issues an order or "call-up" against the standing offer and there is no actual obligation, by the government, to purchase until that time.

Standing offers are used to meet recurring needs. Common products purchased this way include food, fuel, pharmaceutical and plumbing supplies, tires and tubes, stationery, office equipment and electronic data processing equipment. Common services include repair and overhaul, and temporary help services.

Standing offers are usually considered when:

• one or more departments repeatedly order the same goods or services, but the actual demand is not known in advance; or,
• a need is anticipated for a range of goods or services for a specific purpose, but the actual demand is not known at the outset and delivery is to be made when a requirement arises.

Standing offers are most suited to goods or services that can be clearly defined to allow suppliers to offer firm pricing. Public Works and Government Services Canada (PWGSC) sets up standing offers when it is determined that this is the best method of supply. Departments may also establish their own standing offers.

Most requests for Standing Offers with an estimated value of $25 000 or more are now advertised on MERX^TM (see the document MERX - Electronic Tendering Service). Some standing offers with an estimated value below $25,000 are tendered through PWGSC  databases (see the document Registering as a Supplier).

Supply Arrangements

Supply arrangements are non-binding agreements between PWGSC and suppliers to provide a range of goods or, more commonly, services on an "as required" basis. They are lists of qualified suppliers identified as potential sources from which departments can obtain firm price quotations on specific requirements. Supply arrangements include a set of predetermined terms and conditions that will apply to any subsequent contracts.

Supply arrangements are used when goods or services are bought on a regular basis but a standing offer is not suitable because of variables in the resulting call-ups (for example, varying methods/bases of payment; statement of work or commodity can't be adequately defined in advance). Individual requirements are either tendered competitively or negotiated based on a specific scope of work.

For more information about standing offers or supply arrangements, contact the Contracts Canada Information Centre or your local PWGSC office.

• Registering as a Supplier
• MERX: Electronic Tendering Service

• Standing Offers and Supply Arrangements

Ontario Contact(s):
Ms. Patricia Darling
Regional Coordinator
Ontario Region CADC
Public Works and Government Services Canada
Room 480
33 City Centre Drive
Mississauga, Ontario  L5B 2N5
Telephone: (905) 615-2033
Fax: (905) 615-2113
Toll-free (information): 1-800-668-5378 (in Ontario)
E-mail: patti.darling@pwgsc.gc.ca
Web site: http://www.pwgsc.gc.ca