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  • Question

    Is there a need to close BPA/BOA basic awards?


    Answer

    Basic purchasing agreements (BPA) and Basic ordering agreements (BOA) are just agreements and do not need to be closed out, but their individual calls/orders do need to be closed out.

    The following answer is based solely on the background question provided as we do not have all of the facts pertaining to your particular Blanket Purchase Agreements or access to the BPA folder particulars that apply to this situation. We highly recommend you consult the Contracting Officer as well as your agency regulations.
    As defined accordance with FAR 13.303-1 (a), Blanket Purchase Agreements (BPAs) are a simplified method of filling anticipated repetitive needs for supplies or services by establishing “charge accounts” with qualified sources of supply.  Paragraph (b) of that section goes on to say that BPAs should be established for use by an organization responsible for providing supplies for its own operations or for other offices, installations, projects, or functions. Such organizations, for example, may be organized supply points, separate independent or detached field parties, or one-person posts or activities. 
     
    In accordance with FAR 13.303-7 -- Completion of BPAs, an individual BPA is considered complete when the purchases under it equal its total dollar limitation, if any, or when its stated time period expires.  BPA’s themselves are not contracts because they lack consideration.  They are just an agreement between the two parties.  The call or order made from the BPA’s creates the contract.

    IAW FAR 4.804-5 -- Procedures for Closing Out Contract Files Subparagraph (b)(5), states to ensure that the contract completion statement contains the “last call or order number” as if the order were a contract awarded independently of the agreement.  Therefore, procedures for closing out the “Contracts” (Calls or Orders) should follow FAR 4.804

    Overall, the “Agreement” should be considered closed once ALL Calls/Orders have been closed out.  Upon verification, no other actions are required to close out the agreement itself.   Verify if your agency has any local regulations pertaining to this subject.

     

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