13.303-2
Establishment of BPAs
FAR 13.303-2 provides clear criteria and procedures for establishing BPAs, ensuring efficient recurring purchases while promoting competition and favorable terms.
Overview
FAR 13.303-2 outlines the circumstances and procedures for establishing Blanket Purchase Agreements (BPAs). BPAs are used when there is a recurring need for a wide variety of supplies or services, but the specific items, quantities, and delivery requirements are not known in advance. This section details when BPAs are appropriate, the considerations contracting officers must make, and the steps required to set up a BPA. It also clarifies that BPAs can be established with one or multiple suppliers, including Federal Supply Schedule contractors, and emphasizes the importance of maximizing competition and securing favorable terms.
Key Rules
- Appropriate Circumstances for BPAs
- BPAs may be established when requirements are variable and not fully defined, to support multiple offices, to avoid repetitive purchase orders, and when no requirements contract exists for the same need.
- Establishment Procedures
- Contracting officers must define purchase parameters and select suppliers based on dependability, price, and past performance.
- Supplier Selection
- BPAs can be set up with multiple suppliers for competition, a single supplier for frequent purchases, or Federal Supply Schedule contractors if allowed.
- Preparation Requirements
- BPAs should be prepared without a purchase requisition and only after arranging for discounts, transaction documentation, billing, and other necessary details with suppliers.
Responsibilities
- Contracting Officers: Assess need, establish BPA parameters, select qualified suppliers, and ensure arrangements for discounts, documentation, and billing are in place.
- Contractors: Demonstrate reliability, competitive pricing, and quality to be considered for BPAs; comply with agreed terms.
- Agencies: Oversee BPA establishment and ensure compliance with competition and documentation requirements.
Practical Implications
- This section enables streamlined purchasing for recurring needs, reducing administrative burden and increasing efficiency.
- Contractors benefit from potential repeat business but must maintain strong performance and competitive pricing.
- Common pitfalls include failing to document arrangements or not ensuring maximum competition.