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  • Question

    Is there anything written in the FAR that outlines a ceiling if the CO fails to incorporate it during contract award?


    Answer

    The answer to your question is no.

    Contract minimums and maximums of are characteristics of IDIQ contracts which are more commonly used with purchases above SAT. 


    In your case, a BPA is used for purchases below SAT, ergo a 
    FAR Part 13 simplified acquisition method.  A BPA is not a “contract,” consequently there is no promise (minimum) nor is there a limit (maximum).  The BPA is an agreement between parties, then in accordance with this agreement individual purchases or "calls" are made against the BPA.  These individual purchase are limited--they cannot exceed SAT.  These individual purchases may also be limited to the suppliers case or lot sizes, but that is not a minimum or maximum ceiling you are referring to. 

    BPAs are unique in that they can be given to the customer to manage (decentralized BPA’s), this cannot be done with contractual instruments.  Here, the contracting officer is responsible for oversight of the BPA, but the customer identified in the BPA as an "authorized caller" can just pick up the phone and “call” for products or services as long as it remains within the scope of the BPA and is properly funded. 


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