Sign In
  • Question

    I have read FAR 13.3 and have seen the sentence that says (paraphrasing) use whatever is necessary. However, with BPAs not being "contracts" what clauses truly apply? There can be no terminations, as either party can walk away with 30-days notice. Are there options? Or is it just an annual review of the price list to confirm Price Fair and Reasonableness? If it is just a review, then no option clauses are necessary either. It has been a long standing debate and no one seems to have a true answer. I understand with CONS it is always, "it depends". However, I would like a strong opinion that gets me going in the right direction.


    Answer

    FAR Part 13 actually goes beyond "whatever is necessary." In fact, FAR 13.304-4 clearly states "The contracting officer shall insert in each BPA the clauses prescribed elsewhere in this part that are required for or applicable to the particular BPA", so I would not minimize the need to include the necessary FAR Part 13 clauses (and clauses from other applicable Parts) in your BPA. A BPA may not be a contract, but the orders that flow from it are contracts. So, you should include clauses in the BPA that you would include in the orders. In fact, FAR 16.702(b)(1)(i) states that basic agreements shall contain "Clauses required for negotiated contracts by statute, executive order, and this regulation." This should be taken to apply to BPAs as well. 

    Open full Question Details