Commerce Acquisition Manual CAM 13-2

BLANKET PURCHASE

AGREEMENTS

MARCH 1991

U.S. DEPARTMENT OF COMMERCE

OFFICE OF THE SECRETARY

OFFICE OF PROCUREMENT AND ADMINISTRATIVE SERVICES

OFFICE OF PROCUREMENT

COMMERCE ACQUISITION MANUAL

Part 13.2

Chapter 9 - Blanket Purchase Agreements

March 1991

TABLE OF CONTENTS

	Page
1. Definition	1
2. Policy	1
3. Use	1
4. Establishment of BPAs	1
5. Competition and Price Reasonableness	2
6. Publicizing BPA Orders over $10,000	2
7. Requesting and Initiating a BPA
a. Establishment of BPAs by the Procurement Office	2
b. Requesting a BPA	3
c. Conditions for use of BPAs	3
d. Documentation of Orders placed under a BPA	3
e. Budget/Funding Approval	4
f. Placement of Order	4
g. BPA Vendor Requirements	4
h. Payments/Invoices	4
i. Reporting Requirements	4
8. Damaged or Unacceptable Supplies/Services	5
9. Prohibitions	5
10. Restrictions and Clearance
a. Furniture	5
b. Telephones and Telecommunication Services	5
c. Paid Advertisement	5
d. Audiovisual Equipment	5
e. ADP Equipment and Software	6
f. Design and Graphics	6
g. Micrographics	6
11. Reporting Accountable Personal Property - Sensitive and Accountable	6
12. Procurement Office Review	6
13. Ordering Office Review	6
14. List of Samples, Attachments and Exhibits	6
EXHIBITS
Exhibit I - Sample Face Page of BPA	8
Attachment A to BPA- List of Authorized Ordering Officers	9
Attachment B to BPA-General Instructions and Provisions
1. Agreement	10
2. Effective Ordering Period	10
3. Extent of Obligation	10
4. Pricing	10
5. Individual Purchase Limitation	10
6. Total Purchase Limitation	11
7. Method of Purchasing	11
8. Shipment	11
9. Marking of Shipping Containers	11
10. Commercial Warranty	11
11. GSA Federal Supply Schedule (FSS) and GSA Nonmandatory ADP Schedules	11
12. Delivery Ticket	11
13. Invoice Requirements	12
14. Payments	12
15. Terms and Conditions	12
16. Certifications	13
17. Type of Business	14
18. Taxpayer Identification Number	14
19. Acknowledgement	14
Exhibit II - BPA Log Form	15
Exhibit III - Annual Procurement Office Review	16
Exhibit IV - Self-Evaluation Procedures for Program Offices	18
Exhibit V - Sample Memorandum Reporting Monthly BPA Usage	19

BLANKET PURCHASE AGREEMENTS

1. DEFINITION

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. A BPA is not a contract; it is a written instrument of understanding between two parties. BPAs are designed to reduce administrative costs in accomplishing small purchases by eliminating the need for issuing individual purchase, invoice and payment documents.

2. POLICY

A Blanket Purchase Agreement is one of several acceptable methods of obtaining and paying for supplies and services within the small purchase limitation (presently $25,000) in Part 13 of the Federal Acquisition Regulation (FAR). Other methods include: individual purchase order; bankcard; imprest fund; and SF-44.

BPAs may only be established after a determination has been made by the contracting officer that the use of the BankCard is not possible.

3. USE

(a) Delegations The Head of the Contracting Office (HCO) may delegate Level I procurement authority (which includes BPA call ordering authority) in accordance with the Department's Contracting Officer Warrant Program which is contained in Part 1 of the Commerce Acquisition Manual (CAM). Generally, the placement of call orders by program office personnel against established BPAs would fall within Level IA authority. However in special cases (such as NOAA ship repair); HCOs may determine that higher levels of authority are warranted.

(b) For Government Purposes Only BPAs may only be used for U.S. Government purchases. Use for other than official government business is subject to immediate cessation of ordering privileges.

(c) Contact Procurement With Questions Since both Federal and Departmental procurement regulations apply to BPAs, all related questions should be directed to your servicing procurement office.

4. ESTABLISHMENT OF BPAS:

(a) When Appropriate In accordance with FAR 13.203-1(a), BPAs may be established:

(i) If there is a wide variety of items in a broad class of goods (e.g., hardware) that are generally purchased but the exact items, quantities and delivery requirements are not known in advance and may vary considerably.

(ii) If there is a need to provide commercial sources of supply for one or more office or project in a given area that do not have or need authority to purchase otherwise.

(iii) In any other case where the issuance of numerous purchase orders or imprest fund transactions can be avoided through the use of this procedure.

(b) Term BPAs may be established for an indefinite time period, except for those which are established under another agency's contract (e.g., General Services Administration (GSA) Federal Supply Schedule (FSS) contracts). The latter will be established for the time period specified in the agency contract.

(c) Cancellation BPAs will typically allow either party to cancel the agreement upon 30 days written notice.

(d) Range of Requirements BPAs may be limited to furnishing individual items or commodity groups or classes, or it may be unlimited for all items or services furnished by that source of supply.

(e) Obligation of Funds BPAs will be established without obligating funds and without citing specific accounting information. Obligations are made by each call/order placed against the BPA.

(f) Small Business Preference BPAs are to be established with small businesses unless the Contracting Officer determines, in writing, that there are no small business concerns that can provide the desired product or service.

(g) Discounts If it is determined that BPAs would be advantageous, efforts will be made with prospective vendors to secure the maximum possible discounts for the Government.

(h) "Various Vendor" BPAs The so-called "various vendor" BPAs, which do not specify a vendor name and which were previously used by some Departmental organizations, are illegal and shall not be established or used.

5. COMPETITION AND PRICE REASONABLENESS

(a) General A BPA does not justify a "sole source" order; nor does it waive the requirement for obtaining maximum practicable competition, where necessary.

(b) Purchases Not Over 10% of the Small Purchase Limitation

(i) Purchases not exceeding this limit may be made without securing competitive quotations if the ordering official considers the prices to be reasonable.

(ii) Such purchases shall be distributed equitably among BPA vendors.

(iii) If practical, a quotation shall be solicited from other than the previous supplier before placing a repeat order.

(c) Purchases over 10% of the Small Purchase Limitation In accordance with FAR 13.106(b), quotations shall be solicited from a reasonable number of BPA suppliers (or other sources, if necessary) to promote competition to the maximum extent practicable and to ensure that the purchase is advantageous to the Government, price and other factors considered, including all administrative costs of the purchase. Generally, solicitation of at least three sources must be considered to promote the maximum practicable competition. Such purchases will be properly documented in accordance with FAR and local requirements.

6. PUBLICIZING BPA ORDERS OVER $10,000

All open market orders expected to exceed $10,000 must adhere to FAR Part 5.

7. REQUESTING AND INITIATING A BPA

(a) Establishment of BPAs by the Procurement Office

(i) Procurement offices will establish BPAs with known sources of supply on the basis of historical need (for e.g., prior years purchase orders or imprest fund transactions) and projected usage. Program officials are encouraged to suggest sources.

(ii) The procurement office will negotiate and award BPAs. Generally, three BPAs will be established for each requirement to facilitate competition of orders and to assure a ready supply of all products.

(iii) A signed BPA with the terms and conditions required by FAR 13.203-1(j) will be provided to the vendor. Exhibit I is a sample BPA. Procurement offices may have to insert additional FAR clauses depending on the scope of the particular BPA. Although each procurement office may have different procurement automation capabilities, and thus the format may vary somewhat, HCOs shall ensure that their own versions are substantially similar to the sample BPA in this Chapter. In addition, any change to the clause entitled "Invoice Requirement" may only be made with the approval of the Director for Financial Management or his designee.

(iv) The procurement office will provide a complete copy of the BPA to the cognizant program and finance offices. The program office is responsible for further distribution to authorized ordering officials.

(v) BPAs will be reviewed at least once per year by the servicing procurement office as described in Exhibit III. BPAs with fewer than ten (10) calls per year should generally not be renewed except where items are available from only a limited number of sources or where the needs involve repairs of critical equipment.

(b) Requesting a BPA: A requisition shall be sent to the contracting office containing the following information:

(i) A description of the supplies or services to be procured under the BPA;

(ii) An estimate of supplies or services and frequency of calls to be placed against the BPA;

(iii) Suggested source(s), including addresses and telephone number(s);

(iv) A listing of the individuals authorized to place orders under the BPA (Ordering Officers) with their dollar limitations. The listing should be provided in the format described in Attachment A to Exhibit I, be limited to essential staff, and be updated whenever changes occur.

(c) Conditions for use of BPAs

(i) Purchases may be made only by the ordering officers specifically named under the BPA. Any purchase made by an unauthorized individual or by an ordering officer in excess of his or her delegated authority is subject to the Department's regulations on ratifications (CAR 1.301.603-70). Since the Department is not bound by unauthorized contractual commitments, such an individual could be held personally liable for payment. To avoid unauthorized purchases, the program office is responsible for notifying the procurement office of changes to the list of ordering officers. In turn, the contracting officer will ensure that such changes are incorporated into the BPA.

(ii) Individual orders shall be restricted by the terms of the BPA, the limits of the ordering officer's authority, or any other restrictions which may be imposed by the servicing procurement office. Under no circumstances may individual orders exceed the small purchase limit (currently $25,000). Purchases will not be split to avoid this limitation.

(iii) Orders may only be placed for those supplies and services identified in the BPA.

(d) Documentation of Orders placed under a BPA

(i) Each program office granted authority to use a BPA shall establish a separate file for each of its BPAs.

(ii) Each BPA file shall be documented by completing the BPA call log with the following suggested information:

(A) Name of the individual who placed the order;

(B) the date of the order;

(D) accounting data;

(E) description of the item procured;

(F) the anticipated delivery date and delivery address;

(G) the individual call order number (assigned by the Government caller);

(H) purchase requisition number (if applicable);

(I) the date the order was delivered;

(J) the date the delivery receipt was signed, showing receipt and acceptance by the Government;

(K) a copy of the signed BPA, as amended;

(L) a copy of the required quarterly report to Procurement, Finance and Property.

(iii) HCOs/program officials will establish a system of assigning call order numbers capable of preventing duplication of numbers.

(e) Budget/Funding Approval BPA users will adhere to their office policies and procedures concerning BPA purchases. However ordering officers must ensure that adequate funds are available and approved for use prior to placing BPA orders.

(f) Placement of orders Orders will generally be placed orally, and without soliciting competition, if prices are considered fair and reasonable and the transaction amount is not over 10% of the small purchase threshold. Such purchases shall be distributed equitably among small business concerns. When practical, a price quotation shall be solicited from another BPA vendor before placing a repeat order. The following information shall be provided to the vendor:

(i) Authorized ordering officer's name;

(ii) BPA number;

(iii) individual call order number;

(iv) required supplies/services;

(v) accounting data;

(vi) delivery address and telephone number;

(vii) required delivery date;

(viii) reminder that the purchase is tax exempt.

(g) BPA Vendor Requirements: Each vendor with a BPA is required to:

(i) document receipt of the purchase request/call order and ensure that the individual placing the order is authorized to purchase against the BPA;

(ii) deliver the supplies or services and obtain an authorized signature on the delivery ticket or sales slip as proof of delivery and acceptance. Each delivery ticket must contain the information specified in the BPA terms and conditions; and,

(iii) submit summary invoices for all deliveries made during a billing period. Invoices must contain all information specified within the BPA General Instructions and Provisions to be considered acceptable for payment.

(h) Payments/Invoices

(i) The Finance/Program office will, upon receipt of invoices:

(A) determine that the invoice is proper and that signed delivery tickets are included to support the invoice;

(B) determine if the invoice is acceptable or not. If the invoice is not acceptable, return the invoice to the contractor for correction.

(ii) All BPAs shall include the special provisions entitled "Invoice Requirements" and "Payments" (which are included in the sample BPA General Instructions and Provisions included in Exhibit I to this Chapter), unless the Director for Financial Management or his designee approves alternate language.

(i) Reporting Requirements

(i) Under the Federal Procurement Data System (FPDS) agencies are required to report all procurement actions including calls against BPAs. Exhibit III, Blanket Purchase Agreement Log, includes blocks for size and type of business and a block to indicate if competition was obtained. It is important that these blocks be completed accurately.

(ii) Offices which have had BPAs negotiated and put in place for their use are required to send a copy of their BPA log sheet(s) to their servicing Procurement, Finance and Property Offices by the 10th work day of the month following the quarter. These log sheets should be transmitted by memorandum with the information and in the format included as Exhibit V to this Chapter. The Procurement office will include the data in its Federal Procurement Data System (FPDS) reports, as well as in other management information reporting systems, as appropriate. Finance may use the data for BPA obligation recording and payment purposes. Property will use the data to monitor the ordering and receipt of sensitive and accountable property, and to ensure that it is being properly reported by the ordering office as required by local procedures.

(iii) HCOs are responsible for ensuring that this BPA data is collected and reported in the quarterly SF-281 report to FPDS.

8. DAMAGED OR UNACCEPTABLE SUPPLIES/SERVICES

BPA users must promptly document and return damaged or unacceptable supplies and ensure that credit is received for them. Copies of such documents shall be sent along with the quarterly usage logs to the Procurement office.

9. PROHIBITIONS

BPAs shall not be used to purchase the following items:

(a) rental or lease of land or buildings;

(b) airline, bus, boat or train tickets;

(d) gasoline or oil for vehicles, except for aircrafts, vessels, and Department-owned vehicles;

(e) repair of GSA-leased vehicles;

(t) janitorial, yard, or maintenance services; (maintenance services are not to be confused with repair services for which the BPA may be used);

(g) clothing or footwear, except in emergency situations when required for safety;

(h) printing/copying services;

(i) any item or service for personal use.

10. RESTRICTIONS AND CLEARANCES

(a) Furniture BPA users outside of procurement offices may purchase furniture costing up to $100 per call order. Furniture costing over $100 may only be purchased by the procurement office to ensure that required sources are used as prescribed in the procurement regulations.

(b) Telephones and Telecommunication Services BPA's may not be used to purchase telephones and telecommunication services, except by the office in charge of telecommunication services and equipment.

(c) Paid Advertisements

(i) BPAs may be used for paid advertisements in newspapers and other publications with prior approval from the HCO. BPA's may not be used for personnel recruitment advertisements.

(ii) The Public Affairs Office requires an approved CD-384 (audiovisual production request) for the production of audiovisual presentations, exhibits and advertising (DAO-213-4, Section 7.02).

(d) Audiovisual Equipment Audiovisual equipment used for the recording, production, reproduction, processing, broadcasting, distribution, storage or exhibiting of audiovisual products requires special approvals and may only be purchased through the servicing procurement office, except for the following items:

(i) Commercial entertainment productions distributed to NOAA operated ships;

(ii) Audiovisual information collected exclusively for surveillance, reconnaissance, or intelligence purposes;

(iii) Equipment that is an integral part of a vehicle performing reconnaissance; and

(iv) Equipment used in scientific data collection and analysis.

For additional information on audiovisual clearance requirements, see DAO 219-4, dated April 4, 1988.

(e) ADP Equipment and Software Prior to purchasing ADP equipment and software of $500 and over, approval must be obtained from the local ADP coordinator. Existing procedures will be used to obtain the approvals. Guidance on the format of the approval and the name of the appropriate ADP Coordinator may be obtained from your servicing procurement office.

ADP equipment includes word processing equipment and related items.

(f) Design and Graphics Request for design and graphics should be directed to the graphics office which normally handles these services. If the work cannot be done in-house, the graphics office will obtain the services for you. The graphics office may use BPAs to purchase these services.

(g) Micrographics When micrographic services are required, offices in the Washington metropolitan area should check with the Micrographics Division in Springfield, Virginia, to see if the services are available in-house. If they are not, micrographic services may be obtained through BPAs. Offices outside of the Washington metropolitan area may acquire these services through BPAs.

11. REPORTING ACCOUNTABLE PERSONAL PROPERTY - SENSITIVE AND ACCOUNTABLE

(a) Equipment and furniture costing $500 or more, along with "sensitive" property costing $l00-499, is "accountable" property and tracked by the Department's Personal Property System. "Sensitive" property is defined as items that are subject to theft or misuse, such as typewriters, calculators or audiovisual equipment. When a BPA is used to purchase accountable personal property, the acquiring office will observe the local procedures for reporting this property to the designated operating unit Property Administration Officer (PAO) or Property Custodian (PC).

(b) Accountable property is tracked by a unique identification number (which includes the object class number). A bar-coded label containing this number will be affixed to the item by the property office staff. (In the Herbert C. Hoover Building, in Washington, DC, the property office is in Room 1317.) Additional information on property regulations may be found in the Department of Commerce Personal Property Management Manual or may be obtained from your local property office.

12. PROCUREMENT OFFICE REVIEW

(a) The servicing procurement office shall review each BPA at least once a year to ensure that proper procedures are being followed by the responsible program office.

(b) This review will be conducted in accordance with Exhibit H, Procurement/Purchasing Office Annual Review.

13. ORDERING OFFICE REVIEW

Program offices responsible for placing orders against BPAs shall review the BPA files semiannually in accordance with Exhibit IV to ensure that proper procedures are being followed.

14. LIST OF SAMPLES, ATTACHMENTS AND EXHIBITS

(a) Exhibit I (Sample Blanket Purchase Agreement on CD-404),

(i) Attachment A (List of Authorized Ordering Officers)

(ii) Attachment B (General Terms and Conditions for Blanket Purchase Agreements)

(b) Exhibit II (Sample Blanket Purchase Agreement Log)

(c) Exhibit III, (Annual Procurement Office Review of Program Office BPAs)

(d) Exhibit IV, (Self-evaluation for Program Offices with BPAs)

(e) Exhibit V, (Sample Memorandum for Reporting Quarterly BPA Usage to Procurement, Finance, and Property)

Form CD-404
(REV. 5-90)

SUPPLY, EQUIPMENT, OR SERVICE ORDER

(Insert Table Here)

ATTACHMENT A to

BPA No. ___________________

DEPARTMENT OF COMMERCE
LIST OF AUTHORIZED ORDERING OFFICERS

Listed below are the names of individuals with delegated authority to place call orders against the above referenced Blanket Purchase Agreement:

NAME	ORGANIZATION	DOLLAR LIMIT PER ORDER	TELEPHONE NUMBER

ATTACHMENT B to

BPA No. _________________

DEPARTMENT OF COMMERCE
GENERAL INSTRUCTIONS AND PROVISIONS
FOR BLANKET PURCHASE AGREEMENTS

1. AGREEMENT

The Contractor shall furnish the supplies or services described on the face page of this Agreement if and when requested by the Contracting Officer, or authorized representative, during the period of and in accordance with the terms and conditions of this Agreement.

2. EFFECTIVE ORDERING PERIOD

The effective ordering period for this BPA is for the period of performance indicated on the face page of this Agreement or, if no performance period is indicated, from the date of issuance until the date of cancellation by either party. In the event of cancellation, delivery or performance of outstanding orders under the terms and conditions herein may continue for a period of 30 days; after that, any remaining items or quantities will be considered cancelled.

3. EXTENT OF OBLIGATION

The Government is obligated under this BPA only to the extent of orders placed by individuals acting within the scope of their delegated authorities. The Contractor is advised that acceptance of calls from unauthorized individuals (i.e., individuals who are not identified as Ordering Officers in Attachment A to this agreement) or from authorized individuals in excess of their delegated authorities is entirely at the Contractor's risk.

4. PRICING

The prices to the Government shall be as low or lower than those charged to the supplier's most favored customer for comparable quantities under similar terms and conditions, in addition to any discounts for prompt payment.

5. INDIVIDUAL PURCHASE LIMITATION

The dollar limitation for each individual purchase is contained in Attachment A "List of Authorized Ordering Officers" to this BPA. However, in no event shall the Contractor (1) accept an individual order exceeding the small purchase threshold (currently $25,000); (2) accept an order exceeding the ordering officer's dollar limitation specified in Attachment A; or (3) suggest or accept "split" orders to avoid these limitations.

6. TOTAL PURCHASE LIMITATION

This BPA is ____________ , is not ____________ subject to a maximum total dollar limitation (total amount of all delivery/call orders).

7. METHOD OF PURCHASING

Purchases will generally be placed orally by the individuals authorized under this BPA, but a purchase document (CD-404) may be used if written communications are necessary to ensure that the parties agree concerning the transaction.

8. SHIPMENT

Only complete shipments shall be made for each call order. Back ordering and partial shipments are not acceptable unless specifically authorized by the ordering officials on a call-by-call basis. If a Contractor accepts an order and then finds that the entire order is not in stock, the Government must immediately be notified. If duplicate shipments are made, material will be returned to the Contractor at the Contractor's expense.

9. MARKING OF SHIPPING CONTAINERS

All containers will clearly show the consignee, the BPA number and the call order number.

10. COMMERCIAL WARRANTY

The Contractor agrees that the supplies or services furnished under this BPA shall be covered by the most favorable commercial warranties which it provides to any customer for such supplies or services.

11. GSA FEDERAL SUPPLY SCHEDULE (FSS) AND GSA NONMANDATORY ADP SCHEDULES

If items are ordered from GSA's FSS or nonmandatory ADP schedule contracts, the prices and all other terms and conditions of the applicable contract shall apply. Delivery tickets and/or invoices shall identify the GSA contract and items numbers. In the event of conflict between the terms and conditions of this BPA and the GSA contract, the latter shall prevail.

12. DELIVERY TICKET

(a) All shipments under this Agreement shall be accompanied by a delivery ticket or sales slip to be signed by the receiving activity. The signature of the receiving activity shall signify acceptance.

(b) A copy of the delivery ticket signed by the receiving requisitioner shall accompany invoices sent to the Finance Office specified herein.

(i) Name of Contractor

(ii) BPA number and FSS number (if applicable)

(iii) Date of purchase

(iv) Call order number

(v) Name of individual placing call and telephone number

(vi) Itemized list of supplies/services

(vii) Quantity, unit price, and extension of each item, less applicable discounts

(viii) Date of delivery

13. INVOICE REQUIREMENTS

(a) A summary invoice shall be submitted monthly or within 60 days after expiration of this BPA, whichever occurs first, for all deliveries made during a billing period, identifying the delivery tickets covered therein, stating their total dollar value, and supported by receipted copies of the delivery tickets.

(b) Vendors not submitting monthly summary billings, as required under the BPA, will be paid as follows: per call order billings received between the first and the last day of the month will be paid within 30 days from the last day of the month.

_______________________________________________________________________________________________________

(d) To constitute a proper invoice, the invoice must include the following information and/or attached documentation:

(i) Name of contractor

(ii) BPA number and, if applicable, other agency contract number (e.g., GSA FSS contract number)

(iii) Call order number(s)

(iv) Signed delivery ticket(s) showing acceptance of supply or service

(v) Name and signature of official certifying the accuracy of the invoice

(vi) Complete mailing address

14. PAYMENTS

Payments shall be made in accordance with the BPA terms and conditions, if specified, or the prompt payment regulations.

15. TERMS AND CONDITIONS

In accordance with Federal Acquisition Regulation (48 CFR Chapter 1) Part 52.252-2 (Clauses Incorporated By Reference) those clauses listed by reference have the same force and effect as if they were given in full text. Upon request the Contracting Officer will make their full text available.

The following clauses apply to all purchase orders:

INSPECTION AND ACCEPTANCE - Inspection and acceptance will be at destination, unless otherwise provided. Until delivery and acceptance, and after any rejections, risk of loss will be on the contractor unless loss results from negligence of the Government.

52.202-1	Definitions - Alternate 1 (Apr 1984)
52.203-1	Officials Not to Benefit (Apr 1984)
52.203-3	Gratuities (Apr 1984)
52.203-5	Covenant Against Contingent Fees (Apr 1984)
52.203-6	Restrictions on Subcontractor Sales to the Government (Jul 1985)
52.203-7	Anti- Kickback Procedures (Oct 1988)
52.212-9	Variation in Quantity (Apr 1984)
52.213-2	Invoices (Apr 1984)
52.213-3	Notice to Supplier (Apr 1984)
52.219-4	Notice of Small Business Small Purchase Set Aside (Aug 1988)
52.222-3	Convict Labor (Apr 1984) (Unless precluded by FAR Subpart 22.2)
52.225-12	Notice of Restrictions on Contracting with Sanctioned Persons (May 1989)
52.225-13	Restrictions on Contracting with Sanctioned Persons (May 1989)
52.232-8	Discounts for Prompt Payment (Jul 1985)
52.232-23	Assignment of Claims (Jan 1986) (Orders over $1,000)
52.232-25	Prompt Payment (Feb 1988)
52.233-1	Disputes (Apr 84)
52.233-3	Protest After Award (Jun 85)
52.242-10	F.O.B. Origin - Gov't Bills of Lading or Prepaid Postage (Apr 1984)
52.246-1	Contractor Inspection Requirements (Apr 1984)
52.247-34	F.O.B. Destination (Apr 1984)

Additional Terms and Conditions applicable to purchase orders exceeding $2,500:

52.222-4	Contract Work Hours and Safety Standards Act-Overtime Compensation (Mar 1986)
52.222-36	Affirmative Action for Handicapped Workers (Apr 1984)

Additional Terms and Conditions applicable to purchase orders exceeding $10,000:

52.215-1	Examination of Records by the Comptroller General (Apr 1984)
52.219-8	Utilization of Small Business Concerns and Small Disadvantaged Business Concerns (Jun 1985)
52.219-13	Utilization of Women-Owned Small Businesses (Aug 1986)
52.222-26	Equal Opportunity (Apr 1984)
52.222-35	Affirmative Action for Special Disabled and Vietnam Era Veterans (Apr 1984)

Additional Terms and Conditions applicable to all purchase orders for supplies:

52.210-5	New Material (Apr 1984)
52.225-3	Buy American Act-Supplies (Jan 1989)
52.243-1	Changes - Fixed Price (Aug 1987)
52.249-1	Termination for Convenience of the Government (Fixed Price) (Short Form) (Apr 1984)

Additional Terms and Conditions applicable to purchase orders for supplies over $10,000:

52.222-20

Walsh Healey Public Contracts Act (APR 1984) (Unless exempt by statute or regulation)

Additional Terms and Conditions applicable for purchase orders for services:

Service Contract Act of 1965 - All regulations the Service Contract Act of 1965, as amended expressed in 29 CFR Part 4 are hereby incorporated by reference in this contract.

52.243-1	Changes - Fixed Price (Alternate 1) (Aug 1987)
52.249-4	Termination for Convenience of the Government (Services) (Short Form) (Apr 1984)

Additional terms and conditions applicable to purchase orders to individuals up to $25,000:

52.223-6

Drug Free Workplace (Mar 1989)

Other applicable terms and conditions applicable to this agreement:

_______________________________________________________________________________________________________

16. CERTIFICATIONS

The Contractor certifies that: the company is __________ is not __________ a small business concern; the controlling ownership is __________ is not __________ vested in those who are socially disadvantaged; and, the company is _________ is not _________ woman owned.

17. TYPE OF BUSINESS

The Contractor is:

__________ a corporation

__________ a partnership

__________ an individual

18. TAXPAYER IDENTIFICATION NUMBER

(If Contractor is an individual): __________________________________________

19. ACKNOWLEDGEMENT

The terms and conditions included in this agreement apply to all purchases. In the event of an inconsistency between this agreement and the supplier's invoices, the provisions of this agreement shall take precedence. The supplier is hereby requested to acknowledge acceptance of the agreement, including its terms and conditions, by signing and returning ________ copies to the Contracting Officer.

______________________________
BPA NUMBER

CONTRACTOR	GOVERNMENT
____________________________________ Name and Title of Contractor's Representative	____________________________________ Contracting Officer's Name
____________________________________ Signature	____________________________________ Signature
____________________________________ Date	____________________________________ Date

U.S. DEPARTMENT OF COMMERCE
SAMPLE BLANKET PURCHASE AGREEMENT LOG

(Insert Table Here)

EXHIBIT III

DEPARTMENT OF COMMERCE
ANNUAL PROCUREMENT OFFICE REVIEW OF
PROGRAM OFFICE BLANKET PURCHASE AGREEMENTS

1. POLICY

The procurement office will annually review the Blanket Purchase Agreement (BPA) records of program offices.

2. PURPOSE

The purpose of this review is to ensure that authorized procedures are being followed.

3. METHODS

As circumstances warrant, the procurement office may conduct on or off-site reviews. In either case, the reviewer(s) will:

Randomly select and review at least 20% of the program office BPA files and associated records. (Quarterly BPA usage records submitted to procurement by the program offices should be useful for selecting the sample.)
Conduct short interviews with the administrative officer (or appropriate person) to discuss how the system and procedures are working.
Confirm whether each vendor is providing acceptable service.
Solicit comments and suggestions to improve the procedures.

4. CRITERIA FOR EVALUATING BPA RECORDS

The BPA files will be examined to ensure that:

Only authorized callers place calls against BPAs
BPAs are used only for authorized purchases
Single transaction limits are not exceeded
Orders under 10% of the small purchasing threshold are reasonably distributed among BPA vendors for a given product type or service.
Competition is obtained for requirements exceeding 10% of the small purchase threshold and that prices obtained are fair and reasonable.
Requirements are not split to stay within the delegated authority or the threshold for competition.
Items are not purchased on the open market in lieu of mandatory sources.
BPA files are established and transactions fully documented.
Usage is sufficient to warrant continuation of the BPA.
Market conditions warrant continuation of the BPA instead of the Bankcard.

5. REPORT OF FINDINGS

The reviewing office will provide the program office a report of its findings. If problems are identified, program management will take the steps necessary to correct them. Misuse of delegation may result in cancellation of the BPA by the reviewing office.

EXHIBIT IV

DEPARTMENT OF COMMERCE
SELF-EVALUATION PROCEDURES FOR
PROGRAM OFFICES FOR BLANKET PURCHASE
AGREEMENT RECORDS

1. PURPOSE

To ensure that authorized procedures are being followed and to provide program management an early means to detect potential problems.

2. FREQUENCY

The program office will review its BPA records twice each year.

3. WHAT TO REVIEW AND WHY

Program offices should review the same documents that the servicing procurement offices will review during its annual review (see Exhibit III, Chapter 2, Subpart 13 of the CAM).

4. REVIEW METHOD

Any review technique may be employed. However, random sampling of BPA files and fully reviewing ordering logs is suggested.

(a)	Compare the number of individuals who are actually ordering with the number of individuals authorized to do so in the BPA. Make any adjustments and submit any changes in your proposed list of ordering officers so that your procurement office can incorporate these into the BPA.
(b)	Check for unauthorized orders, such as where a person not specified in the BPA has placed an order or where you cannot tell who placed the order.
(c)	Examine dollar amounts to determine whether transaction limits (per order or, if applicable, total BPA ceiling) have been exceeded.
(d)	Check for patterns which could indicate split transactions.
(e)	Check to see if what is being ordered is within the scope of the BPA.
(f)	Run a cumulative total of orders and expenditures for all BPA vendors who supply like products or services and then check to see whether the distribution of orders and dollars is equitable. If one firm consistently receives most of your business, be prepared to document why.
(g)	Think about whether the preferred Bankcard program could replace your BPAs.

EXHIBIT V

SAMPLE MEMORANDUM REPORTING
QUARTERLY BPA USAGE)

MEMORANDUM FOR:	Head of Contracting Office Finance Office Property Office
FROM:	BPA User's Organization (Appropriate Manager)
SUBJECT:	Quarterly BPA Usage Report(s)

In accordance with Part 13 "Blanket Purchase Agreements" of the Commerce Acquisition Manual (CAM), attached are this office's BPA usage (log) reports for the _____________________ quarter of 199___. As specified in the CAM, these reports are to be provided to you by the 10th working day of the month following the end of the quarter.

The summary of our quarterly usage is as follows:

	Actions this Quarter	Obligations this Quarter	Total Obligations
BPA No. _____________	____________________	$ ___________________	$ ___________________
BPA No. _____________	____________________	$ ___________________	$ ___________________
BPA No. _____________	____________________	$ ___________________	$ ___________________
		$ ===================	$ ===================

If you have any questions about this report, please contact __________________________________________ at (telephone number).

Attachment(s) [Attach copies of all BPA log records for previous quarter]

[Note: Keep a copy of each quarterly BPA report in the BPA file(s)]

U.S. DEPARTMENT OF COMMERCE
SAMPLE BLANKET PURCHASE AGREEMENT LOG

(Insert Table Here)