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2007 February Status Report of the Auditor General of Canada

February 2007 Status Report—Chapter 1

Exhibit 1.3—Key definitions

Standing offer—A standing offer results when the government accepts a proposal from a potential supplier to provide goods and/or services at pre-arranged prices, under set terms and conditions, when and if required. Standing offers are used for advertising services that will cost up to $75,000 and for public opinion research services valued up to $200,000. There is one standing offer list for each service for all federal departments to use. A standing offer is not a contract, and neither party is legally bound as a result of signing this document.

Supply arrangement—A method of supply where bids are selected from a pool of pre-qualified suppliers. Supply arrangements are used for advertising services that will cost between $75,000 and $750,000 and public opinion research service contracts valued up to $400,000. There is one supply arrangement list for each service for all federal departments to use. A supply arrangement is not a contract, and neither party is legally bound as a result of signing this document.

MERX—Contracts for advertising and public opinion research valued over $750,000 and $400,000 respectively must be posted on MERX, the electronic tendering system serving both federal government departments and suppliers. It posts procurement notices and bid solicitation documents for suppliers to bid on federal government contracts for goods and services.