BOABASIC (Ordering Agreement)

What is BOABASIC (Ordering Agreement)?

A BOABASIC Ordering Agreement is a written instrument that defines terms and conditions for future contracts (orders) with a supplier. It's not a contract itself, but rather a framework establishing ground rules for subsequent procurements, offering a streamlined acquisition process for recurring or specialized needs.

Definition

A BOABASIC Ordering Agreement, as defined within the Federal Acquisition Regulation (FAR), is a simplified method of filling anticipated repetitive needs for supplies or services by establishing pre-negotiated terms, conditions, and pricing. It outlines a general understanding between the government and a contractor regarding potential future orders. Importantly, the agreement does not obligate the government to place orders, nor does it obligate the contractor to accept them. It serves as a convenient tool for streamlining the acquisition process by pre-establishing terms and pricing, thereby reducing administrative lead time when specific requirements arise. BOABASICs are commonly used when the government anticipates a continuing need for certain supplies or services but cannot predetermine the precise quantities or delivery schedules.

BOABASICs are particularly useful when dealing with specialized services or complex products, where negotiating terms for each individual order would be inefficient. These agreements establish the general framework within which future task or delivery orders will be placed. The FAR provides guidance on the establishment and use of ordering agreements to ensure fair and competitive procurements. Government contractors should be aware of the specific terms and conditions within each BOABASIC and meticulously adhere to them when submitting proposals or fulfilling orders.

Key Points

• Pre-Negotiated Terms: A BOABASIC streamlines acquisition by establishing pre-negotiated terms, pricing, and conditions, saving time and effort on individual procurements.
• Not an Obligation: Neither the government nor the contractor is obligated to place or accept orders under a BOABASIC.
• Simplified Acquisition: It simplifies the procurement process for repetitive needs, providing a framework for future orders.
• Competition: Agencies can establish BOABASICs with multiple contractors to ensure competition and obtain the best value.

Practical Examples

1. IT Services Agreement: An agency anticipates needing ongoing IT support services but cannot define the exact scope or frequency. They establish a BOABASIC with several IT firms, outlining hourly rates and service level agreements. When a specific need arises, the agency issues a task order under the BOABASIC to the qualified firm that best meets the requirements.
2. Engineering Support: A Department of Defense organization requires specialized engineering support for various projects. Instead of creating a new contract for each project, it establishes a BOABASIC with several engineering firms to streamline the process. Each time engineering support is needed, a task order is issued under the BOABASIC, specifying the details of the required work.
3. Training Services: A government agency has a continuous requirement for employee training on various software applications. The agency can establish a BOABASIC with different training providers, specifying the training courses offered, prices, and locations. When a specific training need arises, the agency issues an order under the BOABASIC to the provider that best suits the training requirements.