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  • Question

    1. Are we allowed to terminate BPAs for cause? 2. If we are not allowed to terminate a BPA would it be a cancellation? 3. Since, this BPA was awarded using commercial procedures, what is my modification authority. Is it 52.212-4(c) Changes.


    Answer

    A BPA is not itself a contract and does not obligate the government to enter into future contracts with the contractor. The Court has asserted as much (see a summary at this link). An actual contract is formed only when the agency issues a purchase order under the BPA. Written notification should be provided to the BPA holder when the government wants to cancel the agreement. If a more formal cancellation procedure is contained in the actual BPA, the contracting officer should follow that specific procedure. Because a contractor may take issue with what he/she believes to be an improper termination, be sure to consult your activity's legal counsel for authoritative guidance.

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