Before a Multi-Agency BPA is established, multiple ordering activities should identify, define and consolidate their requirements to obtain greater discounts. All users must also be identified as signatories. To ensure “Best Value” is obtained, the BPA must reflect the requirements of all users with an estimate of the quantity.
The ordering activity can set up a Schedule BPA so that the agency’s various ordering activities/field offices may place orders against the Schedule BPA directly with the Schedule contractor. In order for these ordering activities/field offices to participate in the Schedule BPA, the Schedule BPA must list the users and corresponding points of contact (refer to FAR 8.405-3(a)(6)).
A Schedule BPA does not require the obligation of funds. Funds are obligated when orders are placed against the BPA. Since the government is not obligated to make any purchases under the BPA, this can be stated as:
“The government estimates, but does not guarantee, that the volume of purchases using this BPA will be $_______ (estimate). This BPA does not obligate funds. The government is obligated only to the extent of authorized orders actually made against the BPA.”
Orders for supplies or services not requiring an SOW must be Firm Fixed Price (FFP). (See FAR 8.405-1(a).) Orders for services requiring an SOW/PWS may use one or a combination of the following pricing arrangements:
FFP is the preferred pricing structure and documentation is required as to the rationale for issuing orders as other than Firm Fixed Price. (See FAR 8.405-2(e)(7).)
For BPAs for hourly rate services, the ordering activity must develop an SOW/PWS for the requirements covered by the BPA. All orders under the BPA must specify a fixed price for the performance of the tasks identified in the SOW/PWS.
According to FAR 12.207(b), T&M or LH contracts may be used for the acquisition of commercial services when the service is acquired under a contract awarded using any of the following:
In addition, FAR 12.207(b) and FAR 16.601(d) require the Contracting Officer to do all of the following:
When using LH or T&M pricing:
A sample BPA format is available to help capture the necessary elements. Download a copy of a sample BPA at www.gsa.gov/bpa, click on the Blanket Purchase Agreement Format link.