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  • Question

    What is the difference between a BPA and an IDIQ.


    Answer

    Great question!

    The main aspects of an IDIQ are:

    • A contract with minimum and maximum amounts agreed when created
    • The delivery dates and quantity are not agreed on at the inception
    • It is a binding contract, so the contractor will be obligated to deliver what has been included

     

    The main points of a BPA are:

    • It is an agreement, not an actual contract
    • A price list of quotes will be generated by the contractor, but it is non-binding and no quantity or delivery dates are set
    • Very useful for orders that will be repeatedly placed

     

    IDIQ conracts are set for a fixed period of time, during that period of time the contractor is responsible for an unlimited number of separate projects, or additional work on a current project.

    In other words, an IDIQ contract is an agreement in which specifics such as the delivery date and exact quantity can be determined later.

    BPAs are often thought of as contracts, but they actually aren’t. As the name suggests, they are simply agreements.

    A BPA establishes a working agreement between the contract holder and the contractor which removes the need to establish additional contracts per project or per service, so long as a specified budget has not been passed.

    One easy way to think of a BPA is that it is a collection of non-binding quotes that help keep all parties up to date with specific procurement details before formally agreeing to a project.

    For a more detailed comparison of IDIQ and BPAs, please go to the DAU Contracting Cone: https://aaf.dau.edu/aaf/contracting-cone/simplified-bpa-v-idiq/

     

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