Multiple- vs. Single-Award BPAs and Documentation Requirements
To encourage and facilitate competition when placing orders under BPAs, the FAR establishes a preference for multiple-award BPAs rather than single-award BPAs. The number of BPAs to be established is within the discretion of the ordering activity establishing the BPAs and should be based on a strategy that is expected to maximize the effectiveness of the BPA(s). The ordering activity must consider several factors, including the benefits of on-going competition, when deciding how many BPAs are appropriate and document the decision in the acquisition plan or BPA file. In determining how many multiple-award BPAs to establish or that a single-award BPA is appropriate, the Contracting Officer should consider the following factors and document the decision in the acquisition plan and BPA file:
- The scope and complexity of the requirement(s)
- The benefits of on-going competition and the need to periodically compare multiple technical approaches or prices
- The administrative costs of multiple BPAs
- The technical qualifications of the Schedule contractor(s)
No single-award BPA with an estimated value exceeding $103 million (including any options), may be awarded unless the head of the agency determines in writing that:
- The orders expected under the BPA are so integrally related that only a single source can reasonably perform the work
- The BPA provides only for firm fixed priced orders for:
- Products with unit prices
- Services with prices established in the BPA for specific tasks to be performed
- Only one source is qualified and capable of performing the work at a reasonable price to the Government
- It is necessary in the public interest to award the BPA to a single source for exceptional circumstances
If limiting the potential sources that will be considered for award of a single-award BPA, the above requirement for a determination to establish a single-award BPA greater than $103 million is in addition to the requirement of FAR 8.405-6 for a limited-source justification. However, the two documents may be combined into one document, which must then be approved by the agency head.
- If the BPA is for hourly rate services, the ordering activity shall develop a statement of work for requirements covered by the BPA. All orders under the BPA should specify a price for the performance of the tasks identified in the statement of work.
- Only contractors holding current GSA Schedule contracts may participate in the establishment of a BPA based on GSA Schedules.
If the ordering activity establishes Multiple BPAs, before placing an order exceeding the micro-purchase threshold, the ordering activity shall provide each BPA holder fair opportunity to be considered for each requirement when the value is less than the simplified acquisition threshold and provide an RFQ to all BPA holders if the value exceeds that amount.
Evaluate all responses received, make a “Best Value” determination (IAW FAR 8.404(d)) and place the order with the Schedule BPA holder that represents the best value.