[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR8.405-3]



[Page 130-131]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 8_REQUIRED SOURCES OF SUPPLIES AND SERVICES--Table of Contents

 

                  Subpart 8.4_Federal Supply Schedules

 

Sec. 8.405-3  Blanket purchase agreements (BPAs).



    (a)(1) Establishment. Ordering activities may establish BPAs under 

any schedule contract to fill repetitive needs for supplies or services. 

BPAs may be established with one or more schedule contractors. The 

number of BPAs to be established is within the discretion of the 

ordering activity establishing the BPAs and should be based on a 

strategy that is expected to maximize the effectiveness of the BPA(s). 

In determining how many BPAs to establish, consider--

    (i) The scope and complexity of the requirement(s);

    (ii) The need to periodically compare multiple technical approaches 

or prices;

    (iii) The administrative costs of BPAs; and

    (iv) The technical qualifications of the schedule contractor(s).

    (2) Establishment of a single BPA, or multiple BPAs, shall be made 

using the same procedures outlined in 8.405-1 or 8.405-2. BPAs shall 

address the frequency of ordering, invoicing, discounts, requirements 

(e.g. estimated



[[Page 131]]



quantities, work to be performed), delivery locations, and time.

    (3) When establishing multiple BPAs, the ordering activity shall 

specify the procedures for placing orders under the BPAs.

    (4) Establishment of a multi-agency BPA against a Federal Supply 

Schedule contract is permitted if the multi-agency BPA identifies the 

participating agencies and their estimated requirements at the time the 

BPA is established.

    (b) Ordering from BPAs--(1) Single BPA. If the ordering activity 

establishes one BPA, authorized users may place the order directly under 

the established BPA when the need for the supply or service arises.

    (2) Multiple BPAs. If the ordering activity establishes multiple 

BPAs, before placing an order exceeding the micro-purchase threshold, 

the ordering activity shall--

    (i) Forward the requirement, or statement of work and the evaluation 

criteria, to an appropriate number of BPA holders, as established in the 

BPA ordering procedures; and

    (ii) Evaluate the responses received, make a best value 

determination (see 8.404(d)), and place the order with the BPA holder 

that represents the best value.

    (3) BPAs for hourly rate services. If the BPA is for hourly rate 

services, the ordering activity shall develop a statement of work for 

requirements covered by the BPA. All orders under the BPA shall specify 

a price for the performance of the tasks identified in the statement of 

work.

    (c) Duration of BPAs. BPAs generally should not exceed five years in 

length, but may do so to meet program requirements. Contractors may be 

awarded BPAs that extend beyond the current term of their GSA Schedule 

contract, so long as there are option periods in their GSA Schedule 

contract that, if exercised, will cover the BPA's period of performance.

    (d) Review of BPAs. (1) The ordering activity that established the 

BPA shall review it at least once a year to determine whether--

    (i) The schedule contract, upon which the BPA was established, is 

still in effect;

    (ii) The BPA still represents the best value (see 8.404(d)); and

    (iii) Estimated quantities/amounts have been exceeded and additional 

price reductions can be obtained.

    (2) The ordering activity shall document the results of its review.



[69 FR 34234, June 18, 2004, as amended at 70 FR 43579, July 27, 2005]