47.205
Availability of term contracts and basic ordering agreements for transportation or for transportation-related services
Agencies should prioritize using existing term contracts or BOAs for transportation services, especially those managed by DoD or GSA, to maximize efficiency and cost savings.
Overview
FAR 47.205 outlines the availability and preferred use of term contracts and basic ordering agreements (BOAs) for transportation and transportation-related services by government agencies. While all agencies are authorized to contract directly for these services or execute BOAs, the regulation encourages leveraging existing contracts and agreements established by agencies with specialized expertise, such as the Department of Defense (DoD) and the General Services Administration (GSA). This approach is intended to promote efficiency and cost-effectiveness. For smaller requirements—those not exceeding the simplified acquisition threshold—agencies may procure services directly if no suitable term contracts or BOAs are available.
Key Rules
- Use of Existing Term Contracts and BOAs
- Agencies should use term contracts and BOAs established by experienced agencies (e.g., DoD, GSA) when possible for transportation services.
- Direct Contracting Authority
- Agencies may contract directly for transportation or related services if their own regulations allow, especially for needs under the simplified acquisition threshold when no term contracts or BOAs exist.
Responsibilities
- Contracting Officers: Should check for existing term contracts or BOAs before initiating new contracts and ensure compliance with agency-specific regulations.
- Contractors: Must understand whether their services are being procured under a term contract, BOA, or direct contract, and comply with the relevant terms.
- Agencies: Should coordinate with DoD or GSA for transportation needs and follow internal policies regarding direct contracting.
Practical Implications
- This section exists to streamline transportation service procurement and avoid duplication of contracting efforts.
- It impacts daily contracting by encouraging use of centralized, expert-managed contracts, which can reduce administrative burden and costs.
- Common pitfalls include failing to check for existing agreements or misunderstanding the simplified acquisition threshold exception.