This information will help ordering offices understand how to use Blanket Purchase Agreements (BPAs) under GSA Federal Supply Schedule contracts.

Blanket Purchase Agreements (BPAs) are a simplified method of filling anticipated repetitive needs for services and products. BPAs are "charge accounts" that ordering offices establish with GSA Schedule contractors to provide themselves with an easy ordering tool. In accordance with Federal Acquisition Regulation (FAR) 8.404, ordering offices may establish BPAs under any GSA Schedule contract.

Benefits and Advantages of Using BPAs

Contractual terms and conditions are contained in GSA Schedule contracts and are not to be re-negotiated for GSA Federal Supply Schedule BPAs. Therefore, as a purchasing option, BPAs eliminate such contracting and open market costs as the search for sources, the need to prepare solicitations, and the requirement to synopsize the acquisition. BPAs also—

• Satisfy recurring requirements;
• Reduce acquisition costs through quantity discounts;
• Save time by eliminating repetitive, individual purchases and payments;
• Reduce administrative efforts and paperwork;
• Obtain better value by leveraging an ordering office's buying power through volume purchasing;
• Enable an ordering office to use streamlined ordering procedures with no dollar limitations on individual task/delivery orders;
• Permit an ordering office to incorporate Contractor Team Arrangements;
• Allow for quicker turnarounds on orders; and 
• Permit an ordering office to incorporate terms and conditions not in conflict with the underlying contract.

A BPA can be set up for field offices across the nation to use, thus allowing them to participate in an ordering office's BPA and place orders directly with GSA Federal Supply Schedule contractors. In doing so, the entire agency reaps the benefits of additional discounts negotiated into the BPA. In addition, the ordering office reduces the administrative burden of writing numerous task/delivery orders, while still being able to order as much as it wants and as often as it wants. The flexibility and advantages are endless when setting up a BPA.

Setting Up a BPA

BPAs are established directly with GSA Schedule contractors. In accordance with FAR 8.404, an ordering office may request a price reduction based on the total estimated volume of the BPA, regardless of the size of individual orders. The Request For Quotation (RFQ) should specify the ordering office's requirements, including estimated quantities and work to be performed, and should advise GSA Schedule contractors whether the ordering office intends to establish a single BPA or multiple BPAs.

Generally, a single BPA should be established when the ordering office can easily define its services and/or products requirements and a firm-fixed price or ceiling price can be established. Since a best value selection is made when the single BPA is established, the ordering office does not need to make a separate best value selection for each order under the BPA.

Multiple BPAs should be established when the ordering office cannot easily define its services and/or products requirements, or it determines that more than one BPA is needed to meet its needs. First determine which GSA Schedule contractors are technically qualified and then establish BPAs with them. When multiple BPAs are established, each order must be competed among all BPA holders and a best value selection must be made each time an order is placed.

All BPAs must contain certain information, such as:

• The name of the GSA Schedule contractor;
• The GSA Schedule contract number;
• The BPA number assigned by the ordering office;
• A description of the requirement, to include estimated quantities and work to be performed;
• The prices and/or discounts;
• The extent of the obligation;
• Any additional price reductions negotiated by the ordering office, based on the proposed dollar value of the BPA;
• A listing of individuals authorized to purchase under the BPA;
• The delivery or performance time frames;
• The location of deliveries;
• The frequency of ordering and invoicing;
• The date of BPA expiration; and 
• A statement that all other terms and conditions are contained in the GSA Federal Supply Schedule contract.

Note:  Prices under GSA Federal Supply Schedule contracts have already been determined to be fair and reasonable.