Clarification - Differences between the Standing Offer (SO) and the Supply Arrangement (SA)

Standing Offer Component:

• The Standing Offer component involves the use of a call-up, issued by the Federal Department User.
• Rates are not to be negotiated; the rates that are in the system are firm.
• The Supplier can revise rates weekly, however, the weekly price revision will occur on Sunday (posted), making the rates available to Federal Department Users by 2:00 a.m. Monday morning.
• A search is to be conducted in the THS On-Line System. The search results ranks the Suppliers from lowest rate to highest rate. The selection of the successful supplier must be based on the "Right of first refusal", which means that a Federal Department User must contact the Supplier offering the lowest rate to determine availability. In the past, Public Works and Government Services Canada (PWGSC) recommended that Federal Department Users invite the three lowest rate Suppliers to submit resumes. Due to recent decisions made at the THS Advisory Committee, the actual number to be invited is left up to the Federal Department User. Please keep in mind however, that the lowest rate Supplier's resume(s) must be reviewed first. Should that particular resume not meet the THS requirement, justification must be put on file as to why and then the second lowest rate Supplier's resume(s) can be reviewed and so on until eventually a resume is selected.
• Should a Supplier be selected other than the lowest priced Supplier indicated on your Search Result sheet and they confirm availability within the stated time period (contained in your e-mail), you must document the justification as to why the lowest priced Supplier was not issued the Call-up. This documentation would apply to the second lowest priced Supplier, the third lowest priced Supplier, and so on.
• If a Federal Department User's standard approach is to go to 10 (or more), this is to/can continue, provided the "right of first refusal" (when using the Standing Offer component) is followed. When using the Supply Arrangement component, the stated selection methodology detailed in the Request for Services must be followed.

Supply Arrangement Component:

• Enables a Federal Department User to conduct negotiations with Suppliers (listed in the Bidders' List) for rates lower than the ceiling rate posted in the THS On-Line System.
• Enables a Federal Department User to select a successful Supplier (whose name was on the Bidders' List and whose proposal was evaluated in accordance with the criteria stated in the Request for Services), based on assessed best value.
• Enable a Federal Department User to respond to a complex requirement, e.g. involving multiple classifications or more than one temporary help resource under a specific classification.
• Enables a Federal Department to use contracting authority delegated to the user by the User's department.
• The Supply Arrangement component of the THS On-Line System is the same design as the Standing Offer Component up to the point of carrying out a search; the changes for the Supply Arrangement Component involve:
• The additional search capability of a system generated selection (lowest), plus a random selection, which add to the selection(s) by the Federal Department user; and,
• The preparation of the Request for Services and the Contract is carried out outside of the system using forms available to all Federal Government Departments.

Circumstances when the Supply Arrangement Component must be used:

• for requirements involving multiple classifications;
• for requirements where negotiations are anticipated;
• for requirements that are complex; and
• for requirements where the Federal Department user wishes to define the selection method (versus under the Standing Offer component where "right of first refusal" must be followed to select a Supplier).

Information on selection methods and a template of the Request for Services form will be available to Federal Department Users through the THS Web site. Also, available is procurement support from the Online Services Division.

It is noted, that a background in procurement is mandatory for the use of the Supply Arrangement component. Contract approval and signing (i.e. delegation of authority) are to follow the procedures established within each department.