Blog 9: Is a BPA a Contract? [Linked]
Posted by Dave Clemens at 1/22/2009 9:01 AM 
Categories: 8. Blanket Purchase Agreements
Tags: FSS elements schedules GSA moved to .GOV site BPAs schedule blanket purchase agreement legal contract contracts BPA agreements
Categories: 8. Blanket Purchase Agreements
Tags: FSS elements schedules GSA moved to .GOV site BPAs schedule blanket purchase agreement legal contract contracts BPA agreements
Not usually.
A Blanket Purchase Agreement is Not a “Contract” for Most Federal Procurement Purposes
See:
http://contacts.gsa.gov/blogs/servicesordering.nsf/dx/bpa-not-contract?opendocument&comments
A Blanket Purchase Agreement is Not a “Contract” for Most Federal Procurement Purposes
See:
http://contacts.gsa.gov/blogs/servicesordering.nsf/dx/bpa-not-contract?opendocument&comments
GSA Multiple Award Schedule MAS FSS Federal Supply Schedules service services task order orders ordering professional services blanket purchase agreement BPA BPAs elements of a contract court board contract formation FAR GAO.
Great discussion on BPAs. Too many contracting officers seem to forget that BPAs are not contracts. This is evident when options are included in the BPAs. FAR Part 17.202 states that options may be included in contracts, both sealed bid or by contracting by negotiation. One GSA contracting officer has stated that options were included as part of the BPA in case of contractor poor performance. It allowed an easy way for the Contracting Officer to end the BPA without having to discuss the performance issue with the contractor. The FAR discusses administrative requirements and procedures for BPAs that are adequate to protect the government's rights. Additionally for BPAs utilizing the GSA Multiple Award Schedule contracts the contracting officer may include the cancellation clause which is included in the contractors schedule contract that allows either the government or the contractor to cancel the BPA with 30 days notice for whatever reason.
Again, good job in explaining that the actual BPA is not a contract but becomes binding only when an order is issued under the BPA and the BPA-holder agrees to provide the service.
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Kathee Sewell -
Thanks for the comment. Ordering activities somehow feel (maybe it's just a habit when thinking multiyear) they need to include unnecessary options on their Schedule BPAs. If you anticipate five years of recurring Schedule requirements, then why not simply award a five-year BPA (without options)? It really is overkill to put options on the BPA and then options on those task orders (against the BPA), too. There are many cases where annual funding issues may mean it makes sense to put options on Schedule orders. But I haven't seen a good case yet for options on BPAs - - they increase the government's administrative burden but don't really get you much in return. Remember that there is no funding on the BPA, but on the orders. Put a liberal cancellation clause in your BPAs if you think that makes sense. You can model your BPA clause after the Schedule contract's cancellation clause. Fortunately, even in the event of BPA cancellation, the existing orders continue to run for their own period of performance in accordance with the Indefinite Quantity clause in the Schedule contract. (Remember that a BPA ceases to be an valid procurement vehicle for new orders if the Schedule contract ceases to exist. Canon USA, Inc., B-311254.2, June 10, 2008. See the discussion elsewhere on this blog regarding options on orders and the relationship between the Schedule contract and the task order periods of performance.)
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