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  • Question

    Is AoA (Congressional Notification) required for Master Blanket Purchase Agreement with a cumulative value of $7.5M.


    Answer

    Bottom line up front: A Blanket Purchase Agreement (BPA) is not a contract.  Goods and services are acquired under a BPA when an order (aka "a call") is issued.  According to FAR 13.303-1(a) A blanket purchase agreement (BPA) is a simplified method of filling anticipated repetitive needs for supplies or services by establishing "charge accounts" with qualified sources of supply (see subpart  16.7 for additional coverage of agreements).  FAR Subpart 16.7 makes it pretty clear that agreements are NOT contracts (See FAR 16.702(a) & 16.703(a)  Also take a look at 48 C.F.R. § 4.1101).  According to DFARS 205.303(a)(i), the threshold for congressional notification of DoD awards is $7.5 million.  It further states you must report all CONTRACTUAL ACTIONS, including modifications, that have a face value, excluding unexercised options, of more than $7.5 million.  In your case, the establishment of a master BPA does not constitute a CONTRACTUAL ACTION.  Therefore, an announcement of contract award in accordance with FAR 5.303 and DFARS 205.303 would not be required, regardless of the dollar value, for the master BPA.  Below I've inserted excerpts from the FAR/DFARs references that I think are applicable to your question.

    FAR 5.303 Announcement of contract awards.

          (a) Public announcement. Contracting officers shall make information available on awards over $4.5 million (unless another dollar amount is specified in agency acquisition regulations) in sufficient time for the agency concerned to announce it by 5 p.m. Washington, DC, time on the day of award. Agencies shall not release information on awards before the public release time of 5 p.m. Washington, DC time. Contracts excluded from this reporting requirement include-

               (1) Those placed with the Small Business Administration under Section 8(a) of the Small Business Act;

               (2) Those placed with foreign firms when the place of delivery or performance is outside the United States and its outlying areas; and

               (3) Those for which synopsis was exempted under 5.202(a)(1).

     

    DFARS 205.303 Announcement of contract awards.

    (a) Public Announcement.

    (i) The threshold for DoD awards is $7.5 million. Report all contractual actions, including modifications, that have a face value, excluding unexercised options, of more than $7.5 million.

    (A) For undefinitized contractual actions, report the not-to-exceed (NTE) amount. Later, if the definitized amount exceeds the NTE amount by more than $7.5 million, report only the amount exceeding the NTE.

    (B) For indefinite delivery, time and material, labor hour, and similar contracts, report the initial award if the estimated face value, excluding unexercised options, is more than $7.5 million. Do not report orders up to the estimated value, but after the estimated value is reached, report subsequent modifications and orders that have a face value of more than $7.5 million.

    (C) Do not report the same work twice.

     

    FAR 13.303-1 General.

          (a) A blanket purchase agreement (BPA) is a simplified method of filling anticipated repetitive needs for supplies or services by establishing "charge accounts" with qualified sources of supply (see subpart  16.7 for additional coverage of agreements).

     

    FAR 16.701 Scope.

    This subpart prescribes policies and procedures for establishing and using basic agreements and basic ordering agreements. (See 13.303 for blanket purchase agreements (BPA’s) and see 35.015(b) for additional coverage of basic agreements with educational institutions and nonprofit organizations.)

     

    48 C.F.R. § 4.1101 defines “agreement” as “basic agreement, basic ordering agreement, or blanket purchase agreement.”

     

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