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  • Question

    I've read 16.702 Basic Agreement and 16.703 Basic Ordering Agreement. Are BOAs subject to the 16.702(b)(2) - "Each basic agreement shall provide for discontinuing its future applicability upon 30 days' written notice by either party." Since the description of the BA and the BOA are essentially the same, only difference being that BOAs have the phrase "or contracting office" in the description, does the Government have to honor the request of a contractor to discontinue the BOA with 30 days' written notice to the Government?


    Answer

    Neither a Basic Agreement nor a Basic Ordering Agreement (BOA) are contracts.  They are written instruments of understanding against which future task or delivery orders can be written.  The FAR requires an annual review of both BA and BOA to and revisions as necessary to conform to regulations.  As stated in your question, FAR 16.702(b)(2) requires a 30 days’ written notice by either party to discontinue the basic agreement. This statement is not included in FAR 16.703 for Basic ordering agreements (BOA).  I suggest you read the terms and conditions of your BOA to see if there is a clause that states how the contractor may terminate their agreement with the Government.  The contractor does not have to formally terminate the agreement, if they no longer wish to participate, they can simply refrain from submitting a bid or proposal for future task or delivery order competitions.  However, it would be better to have a written statement formally discontinuing the agreement between the Government and contractor for the file. The loss of a BOA holder may affect future competition.


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