Blanket Purchase Agreements Benefits
- Opportunity to negotiate improved discounts
- Satisfy recurring requirements
- Leverage agency requirements
- Quicker turnaround on orders
- Funding isn’t required until a BPA order is initiated
From the government’s perspective, the four best reasons to use Schedule BPAs
- BPAs give the ordering activity flexibility in acquiring the exact services, levels of
effort, and periods of performance that it needs for acquisitions without having
to go through a separate acquisition process for each purchase.
- BPAs save administrative time and money through consolidated payment and
summary invoicing, thereby creating processing efficiencies.
- Pre-negotiated prices means that the government can be sure it is getting the
best pricing from the contractor on all task orders associated with the Schedule
BPA. Note that the government should seek additional price reductions when
establishing a BPA.
- BPA funding is not required until a need arises and an order is placed.
Contractors also see value in participating in a Schedule BPA:
- It simplifies production and revenue planning by providing an ongoing source
- It increases revenue through volume purchases. To earn the volume purchases,
the contractor understands it must provide volume discounts
- The streamlined acquisition process provides contractors with a quicker
turnaround on orders and may improve cash flow