Supply Arrangements

A supply arrangement is a method of supply used by Public Services and Procurement Canada (PSPC) to procure goods and services. It sets out predetermined conditions and a pool of pre-qualified suppliers from which client departments can solicit bids for specific requirements. CanadaBuys describes it as a method of supply alongside standing offers.

A supply arrangement is not a contract. Neither party is legally bound simply by signing one. It is a framework of conditions that apply to later bid solicitations and to any contracts that result from them. The work is awarded only after a department runs a separate competition for a particular requirement.

How a supply arrangement differs from a standing offer

The two methods are often listed together, but they work differently. A standing offer generally lets a department accept goods or services that are already defined and priced in the offer. A supply arrangement is used when the department must define and compete the specific requirement later, often because the requirement or statement of work varies. PSPC explains this distinction for suppliers: a supply arrangement suits recurring needs where a standing offer is unsuitable because the resulting requirement contains variables.

A supply arrangement commonly includes a pool of qualified suppliers, predefined conditions and sometimes a ceiling price. Departments may negotiate below a ceiling price for the particular requirement, as outlined in the CanadaBuys guidance on standing offers and supply arrangements.

How suppliers qualify through a Request for Supply Arrangements

PSPC generally establishes an arrangement through a Request for Supply Arrangements (RFSA). Suppliers respond to the stated qualification and evaluation requirements. Those that meet the RFSA criteria become pre-qualified suppliers and holders of the arrangement. The CanadaBuys guide to preparing to sell to government covers this starting point.

After qualification, a department issues a separate solicitation for a specific requirement to suppliers within the arrangement's scope. Depending on the method and the arrangement's rules, that solicitation may be posted on CanadaBuys or sent directly to eligible arrangement holders. The task-based supply arrangement page shows one version of this process. There, the client may be required to invite a minimum number of suppliers, and at least 15 must be invited by email under the applicable selection method.

Supply arrangements in use at PSPC and other departments

• ProServices: PSPC's professional services offering is a supply arrangement, not a standing offer. Client departments solicit bids from pre-qualified suppliers for specific requirements, and call-ups cannot be issued against it. See how the ProServices supply arrangement works.
• Task-based informatics services: Qualified suppliers holding the arrangement can bid on specific requirements within its scope.
• Parks Canada Agency: A solicitation for three tractors was open only to suppliers holding the applicable supply arrangement under RFSA E60HS-18AGTR/A.

PSPC establishes arrangements that federal client departments and agencies use to solicit bids and award contracts. The method is available to those clients, including the Department of National Defence, when the arrangement covers the requirement.

What supply arrangements mean for a supplier bidding on Canadian public contracts

Qualifying is the first step, and it is a gate. Many solicitations under an arrangement are restricted to holders, so a supplier that is not on the arrangement cannot bid on them. Watch for RFSAs in your field and respond to the evaluation criteria in full.

Holding an arrangement does not guarantee work or create an entitlement to a contract. You must compete for each individual requirement. Monitor CanadaBuys for solicitations within your arrangement's scope, and check your email for invitations sent directly to arrangement holders. Then bid to the instructions in each solicitation, including any technical, pricing, security, Indigenous procurement or trade-agreement conditions it states.