Supply Arrangement

A Supply Arrangement (SA) is a Government of Canada method of supply. It is a non-binding arrangement with pre-qualified suppliers that establishes predetermined conditions for later solicitations and contracts. Public Services and Procurement Canada (PSPC) describes it as a method used to procure goods and services, as set out on the CanadaBuys page on standing offers and supply arrangements.

Organizations use SAs when they regularly need similar goods or services but cannot adequately define the requirements, quantities or demand in advance. Instead of running a full competition from scratch each time, a department issues a solicitation to suppliers that have already qualified. Signing an SA does not create a contract, and neither party is legally bound by it.

How a Supply Arrangement differs from a standing offer

An SA is distinct from a standing offer. A standing offer generally provides predefined goods or services at established prices. An SA creates a pool of qualified suppliers from which departments compete specific requirements.

SAs suit goods or services that are purchased regularly but carry variables that make a standing offer unsuitable. PSPC explains the difference in its guidance on supplying services to the government, and its overview of how government buys covers the wider procurement process.

The Request for Supply Arrangement and pre-qualification

The initial solicitation for an SA is called a Request for Supply Arrangement (RFSA). Suppliers respond to the RFSA and must satisfy its mandatory technical, financial, security and other stated evaluation requirements. Those that meet the evaluation criteria become pre-qualified suppliers and SA holders.

Holders must then remain compliant with the terms and conditions of the SA. Qualification places a supplier in the pool. It does not guarantee a contract or any volume of work.

Second-stage competitions and ceiling prices

When a department has a requirement within the scope of an SA, it issues a solicitation to some or all suppliers in the pre-qualified pool. The department uses the selection methodology established in the SA. This is often called a second-stage competition.

A contract is formed only when the government accepts a supplier's proposal through that second stage. Many SAs include ceiling prices, and departments may negotiate prices downward based on the specific requirement. A supplier's proposal must address the requirement at hand, including any required technical approach, qualifications, security information and price.

Where the federal government uses Supply Arrangements

PSPC uses SAs across several categories. Some are mandatory government-wide methods of supply for professional services:

• The Solutions-Based Professional Services Supply Arrangement is the mandatory method for solution-based informatics professional services above the Canada–Korea Free Trade Agreement threshold.
• The Task-Based Professional Services Supply Arrangement is mandatory for task-based, non-informatics professional services at or above that threshold.

PSPC also uses SAs for commodities such as laboratory supplies and equipment, workspaces and ancillary lighting products, and executive search and personnel recruitment.

What a Supply Arrangement means for suppliers

For a supplier, the SA is the entry point. If a department buys through an SA in your category, you can only compete for that work by qualifying through the RFSA first. Read the evaluation requirements carefully, because they cover technical, financial and security criteria.

• Respond to the RFSA and meet every mandatory requirement.
• Stay compliant with the SA terms once you are a holder.
• Watch for and respond to second-stage solicitations within the SA's scope.
• Observe ceiling prices and other predetermined conditions, and price each proposal for the specific requirement.
• Do not plan revenue around qualification alone, because the SA does not guarantee awards.

General bidding guidance is available from PSPC on bidding on opportunities.