13.303-5 Purchases under BPAs
Source: FAR 13.303-5 on acquisition.gov
Purchases under BPAs must comply with legal thresholds, maintain competition, and be properly documented to ensure accountability and regulatory compliance.
Overview
FAR 13.303-5 outlines the procedures and requirements for making purchases under Blanket Purchase Agreements (BPAs). It specifies the conditions under which BPAs may be used, purchase thresholds, competition requirements, and documentation standards. The section ensures that purchases made under BPAs comply with legal and regulatory frameworks, maintain competition, and are properly documented for accountability.
Key Rules
- Authorized Use Only
- BPAs can only be used for purchases that are otherwise authorized by law or regulation.
- Purchase Thresholds
- Individual purchases under BPAs generally cannot exceed the simplified acquisition threshold, with exceptions for certain commercial acquisitions and specific authorities that allow higher limits.
- Competition and Set-Asides
- The existence of a BPA does not justify sole-source purchases or avoidance of small business set-asides; competition and set-aside requirements still apply to each order.
- Ensuring Competition
- If there are not enough BPAs to ensure competition for purchases above the micro-purchase threshold, contracting officers must solicit other sources and consider establishing additional BPAs.
- Documentation Requirements
- Documentation should be limited to essential information, with electronic or oral methods preferred. Paper documentation is only necessary when required for clarity or agreement. Essential purchase details must be recorded, and proper receipt and acceptance must be documented, especially if administration is assigned to another activity.
Responsibilities
- Contracting Officers: Ensure purchases comply with thresholds, competition, and documentation requirements; solicit additional sources and establish more BPAs if needed.
- Contractors: Comply with BPA terms and provide necessary documentation for receipt and acceptance.
- Agencies: Oversee compliance with competition, set-aside, and documentation requirements.
Practical Implications
This section ensures that BPAs are used appropriately, purchases remain within legal thresholds, competition is maintained, and documentation is sufficient for audit and accountability. Contractors and contracting officers must be vigilant about thresholds, competition, and proper record-keeping to avoid compliance issues.
(a) Use a BPA only for purchases that are otherwise authorized by law or regulation.
(b) Individual purchases shall not exceed the simplified acquisition threshold. However, agency regulations may establish a higher threshold consistent with the following:
(1) The simplified acquisition threshold and the $9 million limitation for individual purchases ($15 million for purchases entered into under the authority of 12.102(f)(1)) do not apply to BPAs established in accordance with 13.303-2(c)(3).
(2) The limitation for individual purchases for commercial products and commercial services acquisitions conducted under subpart 13.5 is $9 million ($15 million for acquisitions as described in 13.500(c)).
(c) The existence of a BPA does not justify purchasing from only one source or avoiding small business set-asides. The requirements of 13.003(b) and subpart 19.5 also apply to each order.
(d) If, for a particular purchase greater than the micro-purchase threshold, there is an insufficient number of BPAs to ensure maximum practicable competition, the contracting officer shall-
(1) Solicit quotations from other sources (see 13.105) and make the purchase as appropriate; and
(2) Establish additional BPAs to facilitate future purchases if-
(i) Recurring requirements for the same or similar supplies or services seem likely;
(ii) Qualified sources are willing to accept BPAs; and
(iii) It is otherwise practical to do so.
(e) Limit documentation of purchases to essential information and forms as follows:
(1) Purchases generally should be made electronically, or orally when it is not considered economical or practical to use electronic methods.
(2) A paper purchase document may be issued if necessary to ensure that the supplier and the purchaser agree concerning the transaction.
(3) Unless a paper document is issued, record essential elements (e.g., date, supplier, supplies or services, price, delivery date) on the purchase requisition, in an informal memorandum, or on a form developed locally for the purpose.
(4) Cite the pertinent purchase requisitions and the accounting and appropriation data.
(5) When delivery is made or the services are performed, the supplier’s sales document, delivery document, or invoice may (if it reflects the essential elements) be used for the purpose of recording receipt and acceptance of the supplies or services. However, if the purchase is assigned to another activity for administration, the authorized Government representative shall document receipt and acceptance of supplies or services by signing and dating the agency specified form after verification and after notation of any exceptions.