3.50.5. Applicability of Trade Agreements to Standing Offers and Supply Arrangements

Contracting officers must determine whether any or all of the trade agreements apply to each procurement.
The applicability of the trade agreements ( NAFTA, WTO-AGP or AIT) to standing offers and supply arrangements depends on three factors:
1. if the department for which the standing offer/supply arrangement is intended is subject to the agreements;
2. if the good or service is subject to the agreements; and,
3. if the total estimated value of all the call-ups (contracts) against a standing offer or all contracts under a supply arrangement (which determines the total estimated value of the offer or arrangement) is above the NAFTA, WTO-AGP or AIT thresholds.
The total estimated value is determined before tendering, at which time it is identified whether or not any of the trade agreements apply. If they do apply, SO s and SA s are solicited in accordance with the agreements.
Subsequent individual call-ups/contracts cannotbe made under the standing offer/supply arrangement without considering trade agreement applicability, and may be subject to a challenge directed to CITT by suppliers.
For more information on trade agreements and the use of supply arrangements, see 4.10.25.5 International Trade Agreements and Use of Supply Arrangements to 4.10.25.20 Ongoing Qualification Process.