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What is a Blanket Purchasing Agreement (BPA) and how does it relate to a GSA schedule contract?
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Posted On: Monday December 29th, 2003 at 12:00am EST
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The most valuable characteristics of GSA FSS schedules for buyers and sellers are that prices have already been determined to be fair and reasonable and task orders may be filled by soliciting as few as three schedule holders. BPAs take these benefits a step further by determining the terms under which goods and services will be provided and possibly establishing a single source to deliver them over a period of time.
BPAs simplify filling anticipated repetitive needs for services and products. They are essentially "charge accounts" that ordering offices establish with GSA Schedule contractors to provide themselves with an easy ordering tool. In accordance with the FAR ordering offices may establish BPAs under any GSA Schedule contract.
Contractual terms and conditions are contained in GSA Schedule contracts and are not to be re-negotiated for GSA schedule BPAs. Therefore, as a purchasing option, BPAs further reduce acquisition costs through discounts and enable an ordering office to use even more streamlined ordering procedures with no dollar limitations on individual task or delivery orders. Also, contractor team arrangements are permitted on BPAs. In some instances, a BPA can be set up for field offices across the nation to use, thus allowing them to participate in an ordering office's BPA and place orders directly with schedule contractors.
BPAs are established directly with GSA Schedule contractors, and buyers may request a price reduction based on the total estimated volume of the BPA, regardless of the size of individual orders. A single BPA should be established when the ordering office can easily define and firmly price the goods and services required. Since a best value selection is made when the single BPA is established, the ordering office does not need to make a separate best value selection for each order under the BPA. Multiple BPAs are established when the ordering office cannot easily define its services and/or products requirements, or it determines that more than one BPA is needed to meet its needs. When multiple BPAs are established, each order must be competed among all BPA holders. However, under this arrangement, a best value selection must be made each time an order is placed. |
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