There are many goods or services your entity will need to use in an ongoing or ad hoc way. For example, training, professional services, scribing, office supplies, etc. A standing offer is a convenient and flexible way to address this need.
A deed of standing offer (DoSO) is an agreement whereby a supplier offers goods or services for a fixed period, at agreed pricing or rates and on agreed terms. An entity can then order those goods or services when required. Standing offer arrangements are generally established by an open procurement process. In most cases, more than one supplier will be identified as providing value for money. Where multiple suppliers are selected, this is commonly called a 'panel'. Generally, the DoSO will be the same for each supplier.
When an entity requires goods or services, they will need to request a quotation from a supplier(s). If a quote is acceptable and represents the best value for money, then the entity will send an official order to the supplier for the goods or services. The official order is the contract between your entity and the supplier.
The deed of standing offer plus the official order will set out the terms and conditions of that contract (usually standard terms set out in the DoSO, plus the specific requirements contained in the official order). It is important to use the official order template identified by the DoSO to ensure the terms and conditions of the overarching arrangement apply to the individual procurements.
Over the life of the standing offer, many individual contracts may be formed. The deed of standing offer will require an official order to be issued for every purchase from a standing offer.
Standing offer arrangements are efficient and minimise costs to procuring entities and suppliers, as there is no longer need for separate tender processes for the same or similar goods or services. Also, new contractual terms do not need to be negotiated for every purchase.