13.303-7
Completion of BPAs
A BPA is complete when its total dollar limit is reached or its stated period expires, whichever comes first—contractors and contracting officers must monitor both.
Overview
FAR 13.303-7 outlines when a Blanket Purchase Agreement (BPA) is considered complete. A BPA is deemed complete either when the total value of purchases reaches the BPA’s specified dollar limit, or when the BPA’s stated period of performance ends, whichever comes first. This section provides clear criteria for closing out BPAs, ensuring both contracting officers and contractors understand when their obligations under the agreement have concluded.
Key Rules
- Completion by Dollar Limitation
- If the BPA has a total dollar limit, it is complete when purchases reach that limit.
- Completion by Time Period
- If the BPA has a set period of performance, it is complete when that period expires, regardless of the amount purchased.
Responsibilities
- Contracting Officers: Must monitor BPA usage to ensure purchases do not exceed the dollar limitation or extend beyond the stated period, and close out the BPA when either condition is met.
- Contractors: Should track cumulative purchases and be aware of the BPA’s expiration date to avoid unauthorized commitments.
- Agencies: Should ensure oversight and proper documentation of BPA completion.
Practical Implications
- This section exists to provide a clear endpoint for BPAs, preventing over-obligation or unauthorized purchases.
- It impacts daily contracting by requiring diligent tracking of both dollar limits and timeframes.
- Common pitfalls include failing to monitor cumulative purchases or missing the BPA expiration date, leading to compliance issues.