Thank you, Mr. Chair, for the question.
A standing offer is essentially a pre-qualified tool where multiple suppliers have been selected to provide goods or services at predetermined prices under established or set terms and conditions. A standing offer is actually not a contract. There is no obligation on the part of the Government of Canada to procure anything using a standing offer. In fact, a contract is only entered into when the Government of Canada issues what is referred to as a “call-up” to the supplier. A call-up is basically an order for a certain amount of goods or services in accordance with the terms of the standing offer.
Until such time as a call-up is offered, there is no obligation on the part of the Government of Canada with regard to that procurement instrument.