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  • Question

    Are BOAs a more effective contract type for NSA compared to IDIQs, providing an increased threshold similar to that of previous BPA standards?


    Answer

    The most advantageous solution will depend entirely on your customer's scenario and the current condition of their requirements. A review of FAR Part 6, FAR Subpart 16.1, FAR Subpart 16.5 and FAR Subpart 16.7 will be pertinent to your decision.  FAR Subpart 16.7 deals with agreements; they are not contracts.  Basically your decision points will fall in this order:
     
    1st, given your current requirements, how do you and your customer plan to meet the competition standards of FAR Part 6
     
    2nd, which contract type (FAR subpart 16.1) best fits your current requirements? Cost reimbursement or Fixed price?
     
    3rd, is there a particular delivery arrangement (FAR subpart 16.5) best suited for your customer's scenario?
     
    4th, Keeping in mind competition standards of FAR Part 6. Could an agreement described in FAR Subpart 16.7 be helpful to future contract establishment? 
     
    The value thresholds you seek to define for BOA's stem from competition requirements of FAR Part 6, not the definition or application of an agreement (FAR Subpart 16.7).  While a BOA negotiated with a contractor for use with that contractor when/if they win a competition is allowed, it is more typical that a BOA is contemplated in a limited competition environment. Limited competition requires justification and approval (J&A) in accordance with FAR Subpart 6.3 - Other than Full and Open Competition.  FAR 6.304 presents the dollar value thresholds for approval of the justification.
     
    Blanket purchase agreements (BPAs) are agreements tailored to the concepts in Far Part 13 -Simplified Acquisition Procedures. FAR 13.303 covers BPAs and their value thresholds.
     
    There are alternative solutions for such situations.  As with all acquisition strategy issues, the solution is in the details of the scenario...change the scenario and you change the solution. 

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