Government agencies often require a steady supply of goods and services, ranging from office supplies to electronic parts. However, they may not always know the exact quantity or timing of these needs. This is where Blanket Purchase Agreements (BPAs) come into play.
As a GSA contractor, having a BPA under your GSA Schedule can streamline the procurement process. But what exactly are BPAs, and how can you establish one with a government buyer? Let's dive into everything you need to know about BPAs.
What Are Blanket Purchase Agreements (BPAs)?
A Blanket Purchase Agreement (BPA) is a simplified acquisition method that allows a government agency to easily purchase recurring products and services from qualified vendors by establishing “charge accounts”. Unlike other contracting vehicles, such as IDIQs, BPAs have a limited budget and a limited scope of products or services available. Once the BPA is established, approved vendors can then supply these goods or services until the BPA budget is exhausted. Unlike Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, immediate funding for the agency's BPA budget isn't required.
Instead, purchases are made as needed by placing orders within the BPA framework, which outlines order frequency, invoicing, discounts, requirements, delivery locations, and duration. BPAs are considered complete when the purchases made under it meet the budget limit, or when the period of performance expires.
There are two types of Blanket Purchase Agreements:
- Traditional BPAs: Governed by FAR Part 13, these BPAs are limited to acquisitions under Simplified Acquisition Procedures (SAP)Purchases under Traditional BPAs must fall under the Simplified Acquisition Threshold of $250,000.
- BPAs Under the MAS Program: Governed by FAR Part 8.405-3, these BPAs, established under the Schedules Program, offer flexibility and preference for multiple-award BPAs over single-award ones.
Government buyers must decide between establishing a single-award and multiple-award BPAs. If there is only one vendor who meets the government’s needs, then a government buyer may establish a single-award BPA. This simplifies the ordering process, but single-award BPAs cannot exceed one year and may have up to four one-year options.
If a single vendor is unable to fulfill the buyer’s need, or if the buyer’s requirements are very broad, the government may establish a multiple-award BPA. All orders placed in multiple-award BPAs are competed for against a set of selected contractors. This is an advantage for the government buyer, as they have more flexibility with pricing since it is more competitive.
Government buyers also have the option of establishing BPAs with GSA Schedule contractors, but only if the terms of the BPA are consistent with the terms of the contractor’s GSA Schedule. These types of BPAs usually do not have a duration of more than five years but may do so to meet program requirements.
How GSA Contractors Can Establish BPAs
GSA eBuy is one platform where contractors can find and bid on BPAs. Contractors must possess a relevant GSA Schedule contract, demonstrate financial stability, have a pristine past performance record, and offer competitive pricing. Government buyers may also make set-asides for different types of small business concerns, so a contractor who qualifies for set-asides may have higher chances of being awarded a BPA.
Benefits of BPAs
- Reduced Administrative Work: BPAs streamline paperwork for both contractors and government buyers, easing the ordering process and improving cash flow.
- Advanced Planning: Anticipating future needs allows for better supply chain management and production planning.
- Increased Revenue from Volume Sales: Bulk purchases through BPAs can lead to higher revenue for contractors, who can focus on other opportunities due to reduced administrative burdens.
- Flexibility for Government Buyers: Government buyers can establish unique terms and conditions and can plan for anticipated purchases without immediate funding.
Current BPAs
GSA currently hosts several current multiple award BPAs. Here’s some examples of some current ones:
- 2GIT – This BPA gives government buyers access to mission critical hardware and software from vendors who have supply chain risk management plans.
- Maintenance Repair Facility Supplies (MRFS) – MRFS covers maintenance, repair, janitorial, and sanitation products.
- Expedited Professional and Engineering Support Services (EXPRESS) – EXPRESS provides advisory and assistance services for key Army organizations.
GSA has unveiled a draft performance work statement for the Ascend Blank Purchase Agreement, signaling a significant stride towards streamlining cloud procurement procedures. This comprehensive agreement aims to encompass various facets of cloud services, encompassing labor, platform as a service (PaaS), infrastructure as a service (IaaS), and software as a service (SaaS). Interested vendors can find more information about the opportunity on SAM.gov here.
Interested in Acquiring a BPA with your GSA Schedule?
BPAs offer an efficient procurement solution for government agencies and contracting opportunities for GSA Schedule holders, fostering mutually beneficial partnerships in the federal marketplace.
Navigating BPA opportunities and bidding processes can be daunting. If you're interested in acquiring a BPA or have questions about your GSA Schedule, Winvale is here to help!
