3.5.1. Mandatory Standing Offers and Supply Arrangements

Attention! As the transition to CanadaBuys is ongoing, Supply Manual references to ABE are to be interpreted as a generic system reference only. Users of the SAP Ariba environment should adapt their activities accordingly.

Buyers are advised to consult the tools available on CanadaBuys for guidance and procedures on completing procurement transactions in the SAP Ariba environment.

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  1. Public Works and Government Services Canada (PWGSC) has put in place a number of standing offers and supply arrangements that must be used before any new procurement is considered in accordance with the Treasury Board ARCHIVED - Policy Notice: Business Transformation Initiative – The Way Forward.
  2. The use of standing offers and supply arrangements for the commodity groups listed below is mandatory and these mandatory commodities are listed in the Standing Offers and Supply Arrangements Application (SOSA App)The information is only accessible to federal government department and agency employees..
    • N84: Clothing, Individual Equipment and Insignia
    • N58: Communication, Detection, and Coherent Radiation Equipment
    • N91: Fuels, Lubricants, Oils and Waxes
    • N71: Furniture
    • N70: General Purpose Automatic Data Processing Equipment (Including Firmware), Software, Supplies and Support Equipment
    • N23: Ground Effect Vehicles, Motor Vehicles, Trailers and Cycles
    • D3: Information Processing and Related Telecommunication Services
    • N74: Office Machines, Text Processing Systems and Visible Record Equipment
    • N75: Office Supplies and Devices
    • R: Professional, Administrative and Management Support Services
      Sub-categories:
      • RO: Professional Services
      • R1: Administrative and Management Support Services
      • R2 : Personnel Recruitment
  3. These mandatory standing offer and supply arrangements apply to all departments, as defined in Section 2 of the Financial Administration Act, including the Canadian Forces, and to Crown procurement contracts subject to the Government Contracts Regulations and the Treasury Board Directive on the Management of Procurement.
  4. Client departments and agencies continue to be able to acquire goods and services as they have in the past. However, they must first verify whether a mandatory standing offer or supply arrangement exists that meets their requirements. If one does, clients must use it.
  5. On receipt of a requisition for any goods or services within these identified commodity groups, contracting officers must determine if an existing standing offer or supply arrangement can meet the requirement. If so, that standing offer or supply arrangement must be utilized.
  6. The goods or services should not duplicate those already provided under an existing standing offer or supply arrangement at the national or regional level. If the required goods or services are similar, or identical, in nature to goods or services available under existing standing offers or supply arrangements, a full rationale must be provided to justify using another procurement instrument or method of supply. For the process on creating a new standing offer or supply arrangement, see 3.205 Review Process for Creation, Renewal and Extension of Standing Offers and Supply Arrangements.
  7. It should be pointed out to clients that when they use a mandatory standing offer or supply arrangement (with the exception of Departmental Individual Standing Offers), they can receive the goods or services faster and with less administrative cost than by sending a requisition to PWGSC. The value of the acquisition will be limited to their Treasury Board Secretariat delegated purchasing authorities.
  8. Mandatory procurement instruments, such as standing offers and supply arrangements, must be used by client departments acting on their own behalf, or by PWGSC handling a requisition, unless one of the following applies:
    1. the good or service available through the mandatory standing offer or supply arrangement does not meet justifiable operational requirements, including specifications or delivery dates.
    2. the value of the requirement exceeds the call-up limitation of the standing offer or the scope of the supply arrangement.
    3. an existing contract is in place, which guarantees the work to another supplier.
    4. the requirement is subject to contracting obligations under Comprehensive Land Claims Agreement(s) (CLCA), and no mandatory standing offer/supply arrangement exists which addresses the contracting obligations of the applicable CLCA(s);
    5. the requirement will be set aside under the Procurement Strategy for Indigenous Business (PSIB), and no mandatory procurement instrument exists for PSIB set-asides;
    6. the goods or services will be acquired from CORCAN as a stores transfer order.
  9. If PWGSC is handling a requisition, and the contracting officer informs the client that a mandatory standing offer or supply arrangement exists for the client's requirement, and the client disputes the opinion, the contracting officer will seek a decision from the appropriate manager or director responsible for that standing offer or supply arrangement. If the client believes that the decision rendered is not appropriate, the client may refer the issue to their respective Acquisitions Account Manager in the Client Engagement Directorate in Procurement Assistance Canada (PAC). Although, the Account Managers do not make the final decision, they will carefully assess the issue with the director responsible for that standing offer or supply arrangement, in order to have a clear and timely resolution.
  10. If a client department is handling its own procurement, and does not want to use a mandatory standing offer or supply arrangement, it must contact the contracting officer responsible for the appropriate standing offer or supply arrangement (the one that the client department does not want to use), and explain the reason(s).
  11. If the reason(s) are disputed by the contracting offer, the contracting officer will discuss the issue with his manager and director, as required for a decision. If the client considers that the decision rendered is not appropriate, the client may refer the issue with their respective Acquisitions Account Manager in the Client Engagement Directorate. Although, the Account Managers do not make the final decision, they will carefully assess the issue with the director responsible for that standing offer or supply arrangement, in order to arrive at a clear and timely resolution.
  12. The contracting officer should record all procurements where an applicable mandatory standing offer or supply arrangement was not used, and the associated reason(s).
    Note 1: Departments can not put their own standing offers or supply arrangements in place, so as to avoid having to use PWGSC standing offers or supply arrangements, as this would defeat the long term benefits and savings of the PWGSC government wide approach.
    Note 2: If a lower price is available for an equivalent good or service, by means other than the mandatory standing offer or supply arrangement, the client department is requested to inform the PWGSC contracting officer responsible for the appropriate standing offer or supply arrangement (the one that the client department does not want to use).
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