What is the difference between a standing offer and a supply arrangement in Canada?

Both are ways for the Government of Canada to set up buying in advance so departments don't run a full tender every time. The difference is how much is fixed up front.

Side by side

• Standing offer: prices and terms are fixed when the offer is set up. A department places a call-up when it needs the goods or services, often without further competition. No call-up, no contract, and no guarantee of any business. Suits well-defined goods and repeat services.
• Supply arrangement: suppliers qualify once, typically by meeting mandatory experience requirements. When a department needs work done, it sends a bid solicitation to some or all qualified suppliers, who propose resources and rates. Suits professional services where each job is different.

You get on a standing offer by answering a request for standing offers (RFSO), and on a supply arrangement by answering a request for supply arrangements (RFSA). Both are posted on CanadaBuys.

What it means for a small IT firm

Most federal IT professional services go through supply arrangements: TBIPS, SBIPS, TSPS and ProServices. Many refresh on a regular cycle, so you can join without waiting years. ProServices is usually the easiest first one. Being on an arrangement only gives you the chance to compete, so have résumés and rates ready, because requests often allow one to two weeks.

See Canada's federal IT supply arrangements for how each one works.