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  • Question

    On a Blanket Purchase Agreement with multiple BPA holders, can we identify a BPA ceiling amount at the individual BPA level?


    Answer

    Blanket Purchase Agreements (BPAs) can be established either via FAR Part 8 or FAR Part 13. A BPA is a simplified method of filling anticipated repetitive needs for supplies and services. Normally each individual purchase does not exceed the simplified acquisition threshold, however agency regulations may established a higher threshold per FAR Part 13.303-5. The contracting officer shall ensure that BPAs are reviewed annually, and maintain awareness of changes in market conditions, sources of supply, and other pertinent factors (FAR Part 13.303-6).
     
    BPAs established in FAR Part 8.405-3 are against a federal supply schedule (FSS). Ordering activities establish the BPA with schedule contractors that can provide the supply or service (FAR Part 8.405-3). In determining whether to award a single award or various multiple award BPAs, contracting officers should consider: a) the scope and complexity of the requirement, b) benefits of on-going competition and the need to periodically compare multiple technical approaches or prices, c) the administrative costs of BPAs, and d) the technical qualifications of the scheduled contractor(s) (FAR Part 8.405-3(a)(3)(iv)) 
     
    BPAs can be established with specific ceiling limits that are identified in the solicitation. Per FAR Part 13.303-7, an individual BPA is considered complete when the purchases under it equal its total dollar limitations, if any, or when its stated time period expires.



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