Although the objective of both "traditional" BPAs and GSA Schedule BPAs (also known as Multiple Award Schedule (MAS) BPAs) is to fill anticipated repetitive needs for supplies and services, "traditional" BPAs are subject to the requirements of FAR Part 13 whereas, with the exception of FAR 13.303-2(c), which states that "BPAs may be established with GSA Federal Supply Schedule contractors...," FAR Part 13 does not apply to GSA Schedule BPAs. FAR 8.405-3 states that ordering activities may establish BPAs under any Schedule contract to fill recurring needs.

In accordance with FAR 6.102(d)(3), use of the GSA Schedules Program is considered a "competitive procedure" under CICA when the GSA Schedule ordering procedures are followed—i.e., the Ordering Procedures for Supplies, and Services Not Requiring a Statement of Work (FAR 8.405-1) or the Ordering Procedures for Services Requiring a Statement of Work (FAR 8.405-2).

The monetary limitation of a GSA Schedule BPA is determined by the underlying competition conducted by the ordering activity when establishing the BPA. The same ordering procedures outlined in FAR 8.405 apply to the establishment of a GSA Schedule BPA (FAR 8.405-3(a)(2)). Based upon the potential volume of orders under the BPA, ordering activities may be able to obtain greater discounts, regardless of the size of individual orders. The ordering activity shall conduct an annual review of the GSA Schedule BPA to determine whether—

• The underlying Schedule contract is still in effect;
  
• The BPA still represents the best value; and
  
• Estimated quantities/amounts have been exceeded and additional price reductions can be obtained.

Yes. In an effort to obtain better discounts, multiple agencies may combine their requirements and establish a multi-agency BPA against a GSA Schedule contract. The multi-agency BPA must identify the participating agencies and their estimated requirements at the time the BPA is established (FAR 8.405-3(a)(4)).

When establishing a single or multiple GSA Schedule BPAs, an ordering activity must follow the same ordering procedures outlined in FAR 8.405. The end result of following these procedures is that an ordering activity must solicit more than three sources and seek price reductions prior to establishing a GSA Schedule BPA.

Note: DoD offices and non-DoD activities establishing BPAs for supplies and services on behalf of DoD must comply with the additional requirements under Defense Federal Acquisition Regulation Supplement (DFARS) 208.405-70.

GSA evaluates GSA Schedule offers in accordance with the procedures in FAR Parts 12 and 38, as well as the General Services Administration Acquisition Manual (GSAM).

Prior to the award of a GSA Schedule contract, GSA contracting officers determine that the prices of supplies, fixed-price services, and rates for services offered at hourly rates are fair and reasonable, by comparing the prices or discounts that a company offers the government with the prices or discounts that the company offers to its own commercial customers. This negotiation objective is commonly known as "most favored customer" pricing. Since GSA has already determined that prices under GSA Schedule contracts are fair and reasonable, ordering activities do not need to make a separate determination of fair and reasonable pricing, except, in accordance with FAR 8.405-2(d), when considering the level of effort and the mix of labor in a task order.

Thus, ordering activities do not need to obtain "cost or pricing data" or "information other than cost or pricing data" to establish a GSA Schedule BPA. The Federal Acquisition Streamlining Act (FASA) sets forth the policy that discourages agencies from obtaining cost or pricing data when a commercial item is being acquired.

Yes. A GSA Schedule BPA can be set up so that the agency's ordering activities/field offices may place orders under the GSA Schedule BPA directly with the GSA Schedule contractor. In order for these ordering activities/field offices to participate in the GSA Schedule BPA, the GSA Schedule BPA must list the authorized users and corresponding points of contact (FAR 8.405-3(b)(1)).

No. The alteration or tailoring of GSA Schedule contract terms and conditions which has implication to the scope of the underlying contract is strictly prohibited. Such tailoring constitutes cardinal changes in the contractural relationship and may violate the Competition in Contracting Act of 1984 (CICA). When there is a question as to whether additional GSA Schedule BPA terms and conditions conflict with the scope of the GSA Schedule contract, the ordering activity should contact the assigned GSA contracting officer.

Generally, the alteration or tailoring of GSA Schedule contract terms and conditions to meet the needs of individual procurements is not permitted. In the case of delivery times, however, GSA Schedule contracts provide for various expedited delivery terms. An ordering activity may find that the GSA Schedule contracts already contain the expedited delivery it requires, or the ordering activity may contact GSA Schedule contractors to request the desired delivery time.

Clarifying clauses and special requirements can be added to BPAs, provided that such additions do not conflict with the terms and conditions of the GSA Schedule contract. Provisions and clauses commonly added address such topics as organizational conflicts of interest and approval of subcontractors or key personnel. When there is a question as to whether additional GSA Schedule BPA terms conflict with the GSA Schedule contract, the ordering activity should contact the assigned GSA contracting officer.

Under the terms of GSA Schedule contracts, contractors have the ability to submit requests to add supplies or services, which are within scope, to their existing contracts. Thus, ordering activities may contact GSA Schedule contractors to request that open market items, which are within scope, be added to their GSA Schedule contracts.

Open market items are also known as incidental items, noncontract items, non-Schedule items, and items not on a GSA Schedule contract. In accordance with FAR 8.402(f), for administrative convenience, an ordering activity contracting officer may add items not on the GSA Schedule contract—i.e., open market items—to a GSA Schedule BPA or an individual task or delivery order only if—

• All applicable acquisition regulations pertaining to the purchase of the items not on the GSA Schedule contract have been followed (e.g., publicizing (FAR Part 5), competition requirements (FAR Part 6), acquisition of commercial items (FAR Part 12), contracting methods (FAR Parts 13, 14, and 15), and small business programs (FAR Part 19));
  
• The ordering activity contracting officer has determined the prices for the items not on the GSA Schedule contract are fair and reasonable;
  
• The items are clearly labeled on the order as items not on the GSA Schedule contract; and
  
• All clauses applicable to items not on the GSA Schedule contract are included in the order.
  

No.

A GSA Schedule BPA should not exceed five years in length, but may do so to meet program requirements (FAR 8.405-3(c)). A Schedule contractor may be awarded a BPA that extends beyond the current term of its GSA Schedule contract, so long as there are option periods in the GSA Schedule contract that, if exercised, will cover the BPA's period of performance.

An ordering activity that establishes a BPA shall conduct an annual review to determine, among other factors, whether the Schedule contract, upon which the BPA was established, is still in effect and whether the BPA still represents the best value.

No. In accordance with the terms and conditions of each GSA Schedule contract, each team member must report its own GSA Schedule sales and IFF.

To view a wealth of information on BPAs, visit the Center for Acquisition Excellence.