Can a contractor be held to prices provides under a BPA option year? How can you have option years in a BPA? FAR PART 8 / 8.404- Use of Federal Supply Schedules is referencing BPA against a GSA schedule which is a contract, The BPA is not a contract.
Contractor doesnot have to accept BPA calls or Orders against BPA.
Once a Contractor accepts a BPA call or Order then that becomes binding.
So what you are calling BPA option years is not Binding and contractor does not have to accept.
If a contracting activity establish alocal BPA not against a FSS then there is not a contract and will not have option years.
It's difficult to understand your specific question but this may help. The Government Contracts Reference Book, Third Edition, describes a basic agreement as "A written instrument of understanding (not a CONTRACT) negotiated between a procuring activity and a contractor...Basic agreements are used to expedite future procurement when there is a likelihood that a substantial number of future contracts will be issued." FAR 16.702 describes the basic structure and process of basic agreements.
Open full Question Details
FAR 8.405-3 speaks specifically to Blanket purchase agreements (BPAs). 8.405-3 (d)(1) addresses the duration of BPAs. "(1) Multiple-award BPAs generally should not exceed five years in length, but may do so to meet program requirements. (2) A single-award BPA shall not exceed one year. It may have up to four one-year options...(3) Contractors may be awarded BPAs that extend beyond the current term of the 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." It goes on to describe what the contracting officer must do in extending the BPA. "(e) Review of BPAs. (1) The ordering activity contracting officer shall review other BPA and determine in writing at least once a year (e.g. at option exercise), whether- (i) The schedule contract, upon which the BPA was established, is still in effect; (ii) The BPA still represents the best value (see 8.404(d); and (iii) estimated quantities/amounts have been exceeded and additional price reductions can be obtained."
The FAR reference above describes how a BPA may be extended and what the contracting officer must do. As such, your BPA, under the right conditions, may remain in place and you can continue to use.
A question such as this is best answered by the contracting officer that supports your organization. The contracting officer will have all the facts and provide you with a specific answer to address your concern. It's highly recommend to communicate with your local contracting office, and the legal office if applicable.