19.804-5
Basic ordering agreements and blanket purchase agreements
Each order under a BOA or BPA in the 8(a) program must be individually offered to and accepted by the SBA, and sole-source orders cannot exceed competitive thresholds or be awarded to ineligible participants.
Overview
FAR 19.804-5 outlines the requirements for using Basic Ordering Agreements (BOAs) and Blanket Purchase Agreements (BPAs) within the 8(a) program. It mandates that each order placed under a BOA or BPA must be individually offered to and accepted by the Small Business Administration (SBA), even if the overarching agreement has already been accepted. The section also restricts sole-source orders that would exceed the competitive threshold, and clarifies that once an 8(a) participant's eligibility ends, no new orders can be accepted for that participant under the agreement.
Key Rules
- Offering and Acceptance for Each Order
- Every order under a BOA or BPA must be separately offered to and accepted by the SBA, regardless of prior acceptance of the agreement itself.
- Sole-Source Award Limitations
- SBA will not accept sole-source orders that would push the total value of orders under a BOA or BPA above the competitive threshold specified in FAR 19.805-1.
- Eligibility of 8(a) Participants
- No new orders can be accepted for an 8(a) participant after their program term expires, they exit the program, or they are no longer considered small for the relevant NAICS code.
Responsibilities
- Contracting Officers: Must submit an offering letter for each order and ensure compliance with competitive thresholds and participant eligibility.
- Contractors: Must monitor their 8(a) status and ensure continued eligibility for new orders.
- Agencies: Must coordinate with SBA for each order and track cumulative order values under BOAs/BPAs.
Practical Implications
- Ensures SBA oversight for each order under BOAs/BPAs in the 8(a) program.
- Prevents circumvention of competition requirements by limiting sole-source awards.
- Requires careful tracking of participant eligibility and cumulative order values to maintain compliance.