Blanket Purchase Agreement
A Blanket Purchase Agreement (BPA) is a simplified method of filling anticipated repetitive needs for open market supplies or services below the Simplified Acquisition Threshold (SAT). Open market means items not available from required sources of supply, such as GSA schedule contracts, outlined in FAR Part 8.002.
BPAs can be single award or multiple award. Multiple award are preferred.
A BPA establishes a "contract vehicle" whereby a Contracting Officer or Prime contractor can routinely purchase supplies or services in a streamlined fashion. However, the BPA by itself is not a contract (See Legal Cases below).
Once the BPA is established, “calls” or "Purchase Orders" are placed to order items off the BPAs.
Procedures to establish and place orders against BPAs are described at FAR 13.303 and DFARS 213.303 – Blanket Purchase Agreements (BPAs).
Contents |
Common Applications
- All types of supplies and services, to include construction
- Software licenses
- IT software and products
- Research and development
- Engineering services
- Special studies
Pros/Cons
| Pros | Cons |
|---|---|
| Opportunity to combine repetitive purchase orders under a BPA reduces procurement lead time and administrative costs | Simplified acquisition threshold order limitation reduces flexibility to acquire large scale orders |
| Ability to establish agreements with multiple vendors maintains competition and reduces cost, schedule, and performance risk associated with a single vendor source | |
| Streamlined BPA ordering procedures reduces procurement lead time | |
| Ability to establish unique terms and conditions, to include contract types, increases flexibility in acquiring services and products | |
| Increases flexibility to plan for anticipated purchases without immediate funding, no required minimum guarantee, or maximum ceiling | |
| Offers no limitations on types of products or services increasing flexibility to meet unique agency needs |
Legal Cases
In Crewzers Fire Crew Transport, Inc. v. U.S. (Feb. 6, 2014), the Federal Circuit reaffirmed that a blanket purchase agreement is not typically a binding contract on which the contractor can sue. The "mutuality of obligation" was negated in both directions, with the BPA expressly saying the agency was not obligated to make an award under the BPA and that the contractor was not obligated to accept any order proffered by the agency.
