8.405-3 Blanket purchase agreements (BPAs).

1. 1. Establishment. Ordering activities may establish BPAs under any Schedule contract to fill repetitive needs for supplies or services. BPAs may be established with one or more Schedule contractors. 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). In determining how many BPAs to establish, consider—
      1. The scope and complexity of the requirement(s);
      2. The need to periodically compare multiple technical approaches or prices;
      3. The administrative costs of BPAs; and
      4. The technical qualifications of the Schedule contractor(s).
   2. Establishment of a single BPA, or multiple BPAs, shall be made using the same procedures outlined in 8.405-1 or 8.405-2. BPAs shall address the frequency of ordering, invoicing, discounts, requirements (e.g., estimated quantities, work to be performed), delivery locations, and time.
   3. When establishing multiple BPAs, the ordering activity shall specify the procedures for placing orders under the BPAs.
   4. Establishment of a multi-agency BPA against a FSS contract is permitted if the multi-agency BPA identifies the participating agencies and their estimated requirements at the time the BPA is established.
2. Ordering from BPAs—
1. Single BPA. If the ordering activity establishes one BPA, authorized users may place the order directly under the established BPA when the need for the supply or service arises.
2. Multiple BPAs. If the ordering activity establishes multiple BPAs, before placing an order exceeding the micro-purchase threshold, the ordering activity shall—
   1. Forward the requirement, or SOW and the evaluation criteria, to an appropriate number of BPA holders, as established in the BPA ordering procedures; and
   2. Evaluate the responses received, make a best value determination (see 8.404(d)), and place the order with the BPA holder that represents the best value.
3. BPAs for hourly rate services. If the BPA is for hourly rate services, the ordering activity shall develop a SOW for requirements covered by the BPA. All orders under the BPA shall specify a price for the performance of the tasks identified in the SOW.
3. Duration of BPAs. BPAs generally should not exceed 5 years in length, but may do so to meet program requirements. Contractors may be awarded BPAs that extend beyond the current term of their GSA Schedule contract, so long as there are option periods in their GSA Schedule contract that, if exercised, will cover the BPA’s period of performance.
4. Review of BPAs.
1. The ordering activity that established the BPA shall review it at least once a year to determine whether—
   1. The Schedule contract, upon which the BPA was established, is still in effect;
   2. The BPA still represents the best value (see 8.404(d)); and
   3. Estimated quantities/amounts have been exceeded and additional price reductions can be obtained.
2. The ordering activity shall document the results of its review.