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  • Question

    Whenever exercising an Option Period for a competed BPA using FAR Part 13, does the agreement need to be exercised using SF30, Modification. Our office uses PD2, contract writing tool.


    Answer

    The following response is based solely on the question and background information provided.  As we do not have all the facts particular to your situation, we highly recommend, as applicable, you consult your leadership, contracting officer and/or Legal Office for further guidance.
     
    In short, your "option" should not be exercised using an SF30 Modification.  Based on the background you provided, we assume it was executed pursuant to FAR subpart 8.4, Federal Supply Schedule (FSS) requirements.  As a result, this response applies the procedures in FAR subpart 8.4 vice FAR part 13; however, the procedures are essentially the same as it relates to your question with a bit less specificity in FAR 13.303-6 -- Review Procedures.  First and foremost, it is important to recognize that a Basic Purchasing Agreement, as clearly stated in FAR 16.702(a)(2), is not a contract, but a written instrument containing "contract clauses applying to future contracts between the parties."  In the case of a BPAs, this typically comes in the form of a "call" against the BPA or, as stated in FAR 8.404, an order. 
     
    For BPAs established under FAR 8.404 procedures, the exercise of options simply require that the Contracting Officer review the BPA on an annual basis to confirm that the FSS BPA is still in effect, is still representative of the best value to the Government and whether the agency's anticipated ordering quantities are still within the BPA total estimated quantities and there is no potential for price reductions from that currently on the BPA schedule.  This review is documented by a Contracting Officer's inclusion of a determination and findings in the contract file (see FAR 8.405-3(e)(2)).  Presumably, the Contracting Officer will follow any established Contractor notification requirements for option exercise contained in the BPA.  It should be noted that FAR 43.301 clearly states the criteria for use of the SF30, none of which apply to basic agreements, but may apply to individual calls or orders issued pursuant to the BPA. 
     
     

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