4.10.20. Request for Standing Offers
- A Request for Standing Offers (RFSO) is used to solicit offers for standing offer methods of supply. For more information on the application of standing offers, see 3.40 Standing offer method of supply.
- A RFSO can be used to solicit offers through public advertisement on GETS, through direct invitation of selected suppliers by means of a source list where permitted, or by invitation of one source only if conditions for a non-competitive process have been met.
- The RFSO must give instructions on the use, purpose and limitations of the proposed standing offer. The Standard Acquisition Clauses and Conditions Manual (SACC) Standard Instructions 2006 (competitive) and 2007 (non-competitive) and General Conditions 2005 are designed specifically for standing offers and must be incorporated by reference in each RFSO. Contracting officers establishing an RFSO must use the RFSO template following the Standard Procurement Template Procedures, which provides instructions on how to use the templates.
- A RFSO must include the following information, as a minimum:
- a clear definition of the requirement and the period for making call-ups;
- information on the number of standing offers intended to be authorized for use;
- offer preparation instructions;
- clear evaluation criteria;
- clear evaluation procedures and basis of selection;
- instructions informing offerors that they may request information about the results of the RFSO and how their offer was evaluated. (See 7.40 Debriefings to Unsuccessful Bidders/Offerors/Suppliers for information to be included in debriefings.)
- clear ranking methodology where applicable;
- clear call-up procedure(s) including the method of allocating the work among multiple standing offers;
- a notice to offerors regarding disclosure of their unit prices (see SACC Manual General Conditions 2005);
- conditions applicable to the RFSO;
- conditions applicable to the standing offer;
- resulting contract clauses applicable to ensuing call-ups; and
- the estimated utilization, whenever practical.
18.104.22.168 Standing Offer Procedures
- Call-up Limits: A call-up issued against a standing offer constitutes an individual contract and Treasury Board (TB) contracting limits apply. Contracting officers will set the maximum call-up limit for identified users in the standing offer document using Appendix A – Contracting Approvals of the Directive on the Management of Procurement as a guide. However, PWGSC has the authority to further limit the value of individual call-ups.
- Financial Limitation: The inclusion of a limitation of expenditure in standing offers is optional. The standing offer authority will determine, if applicable, the need for inclusion of a limit on the basis of the type of standing offer (Master or Individual), the degree of control over total expenditures and the needs of the client department(s). SACC Manual clause M4506C may apply.
- Identified Users: The identified users authorized to make call-ups against standing offers could include any government department, agency or Crown corporation listed in Schedule I, Schedule I.1, Schedule II, Schedule III of the Financial Administration Act. See SACC Manual RFSO template, Part 7A, article 7.7.
- Standing Offers Reporting: The standing offer authority may indicate in the standing offer the reporting requirement for the offeror, and/or the client department, as applicable. In such case, the standing offer must indicate the time frame within which each report must be submitted following the reporting period. See SACC Manual clause M7010C. See also 8.75.1 Reporting for Standing Offers and Supply Arrangements for more details on reporting.
22.214.171.124 Ranking and Methodology for Standing Offers
- One Standing Offer:
Where only one standing offer will be authorized for use as the result of a competitive RFSO, the resulting call-ups are considered competitive and the competitive call-up authorities can be used.
- Multiple Standing Offers:
If more than one standing offer will be authorized for use based on a reasonable expectation of business activity such that a single offeror would lack the capacity to meet the demands, clear ranking methodologies and call-up procedures must be described in the RFSO, so that suppliers are aware of these when preparing their offer. The two models of ranking methodology are described below:
- right of first refusal basis:
The call-up procedures require that when a requirement is identified, the identified user will contact the highest-ranked offeror to determine if the requirement can be satisfied by that offeror. If the highest-ranked offeror is able to meet the requirement, a call-up is made against its standing offer. If that offeror is unable to meet the requirement, the identified user will contact the next ranked offeror. The identified user will continue and proceed as above until one offeror indicates that it can meet the requirement of the call-up. In other words, call-ups are made based on the "right of first refusal" basis. When the highest-ranked offeror is unable to fulfill the need, the identified user is required to document its file appropriately. The resulting call-ups are considered competitive and the competitive call-up authorities can be used.
- proportional basis:
The call-up procedures require that call-ups be issued on a proportional basis such that the highest-ranked offeror receives the largest predetermined portion of the work; the second highest-ranked offeror receives the second largest predetermined portion of the work, etc. (for example, 50 percent to the highest-ranked offer, 30 percent to the next highest-ranked offer and 20 percent to the third highest-ranked offer). This predetermined distribution of the resulting work is to be described in the RFSO so that potential offerors are aware of these when preparing their offer. It is also known as "collective best value". The highest-ranked standing offer represents the best value for Canada, and its offeror receives the largest portion of the work. A clear advantage in terms of distribution of expected business volume should be given to the highest-ranked offeror (for example, 20 percent or more than the next offer) and the same for the others. The determination of what constitutes a clear advantage is the responsibility of the contracting officer and may vary by commodity, service or by business case. The resultant call-ups are considered competitive and the competitive call-up authorities can be used.
Where individual standing offers are to be authorized based on the proportional basis approach, the contracting officer should inform the authorized user of his/her obligation to monitor call-up activities to ensure work is allocated in accordance with predetermined work distribution.
- In both cases above, contracting officers should clearly state in the RFSO the expected number of standing offers that are intended to be authorized for use. If the intention is that multiple standing offers will be authorized for use, the RFSO should state the basis upon which call-ups will be issued, whether right of first refusal, proportional or another method. If call-ups must be issued against standing offers under the proportional basis approach, the breakdown must be stated (for example, 50 percent, 30 percent and 20 percent) in the RFSO.
- In addition to the above, when the intention is that multiple standing offers will be authorized for use, contracting officers could include a condition that only those standing offers, which are within, for example, 10 percent of the best-priced offer, will be considered. The method of such calculations should be explicitly described in the RFSO.
- right of first refusal basis:
- Non-competitive call-ups:
In other instances, more than one SO will be authorized for use but no ranking is established. This would occur, for example, when prices are sought for a full range of items contained in a catalogue where items and ranking of offers is impossible. The authorized call-up authority may choose whichever SO to use. For some requirements, the contracting officers may set parameters to guide the authorized users in the selection of one of the standing offers. Call-ups made against these standing offers are non-competitive and only the non-competitive call-up authorities can be used.
126.96.36.199 Standing Offer Forms
The following forms are used for call-ups against a standing offer and are available through PWGSC Forms Catalogue Web site:
|Forms Number||Forms Title|
|PWGSC- TPSGC 942||Call-up Against a Standing Offer|
|PWGSC- TPSGC 944||Call-up Against Multiple Standing Offers|
|PWGSC- TPSGC 8251||Call-up Against a Standing Offer for Temporary Help|
|PWGSC- TPSGC 7169-1||Call-up Against a Standing Offer for Security Guard Services|
|PWGSC- TPSGC 191||Acquisition Card Application (MasterCard)1 may also be used at the time of the call-up against standing offers, as an alternative to other payment methods identified in the standing offer2.|
1Because use of a credit card results in immediate payment to the contractor, the normal payment period and interest on overdue accounts provisions do not apply. (See SACC Manual template RFSO, Part 6B, article 2.)
2Contracting officers should verify if the client(s) need such a service and include appropriate details in the standing offers. In such cases a call-up form may, or may not, be warranted.