Types of Contracts and Procurement Methods
Blanket Purchase Agreements (BPA)
What is a BPA blanket purchase agreement?
A Blanket Purchase Agreement (BPA) is a simplified method of filling anticipated repetitive needs for open market supplies and services below the simplified acquisition threshold (SAT). Open market means items not available from required sources of supply outlined in FAR Part 8.002.
What is the difference between a BPA and a basic ordering agreement?
The main difference between a BOA and a Blanket Purchase Agreement (BPA) is that BPA establishes “charge accounts” with qualified contractors with a predetermined price list. A BOA on the other hand describes the method for determining prices to be paid to the contractor for the supplies or services.
Basic Ordering Agreement (BOA)
Description. A basic ordering agreement is a written instrument of understanding, negotiated between an agency, contracting activity, or contracting office and a contractor, that contains
- terms and clauses applying to future contracts (orders) between the parties during its term,
- a description, as specific as practicable, of supplies or services to be provided,
- methods for pricing, issuing, and delivering future orders under the basic ordering agreement. A basic ordering agreement is not a contract.
Application. A basic ordering agreement may be used to expedite contracting for uncertain requirements for supplies or services when specific items, quantities, and prices are not known at the time the agreement is executed, but a substantial number of requirements for the type of supplies or services covered by the agreement are anticipated to be purchased from the contractor. Under proper circumstances, the use of these procedures can result in economies in ordering parts for equipment support by reducing administrative lead-time, inventory investment, and inventory obsolescence due to design changes.
Limitations. A basic ordering agreement shall not state or imply any agreement by the Government to place future contracts or orders with the contractor or be used in any manner to restrict competition.
Blanket Purchase Agreements (BPA) Calls
What is a BPA call?
A GSA Schedule BPA is an agreement established by a government buyer with a Schedule contractor to fill repetitive needs for supplies or services (FAR 8.405-3).
What is the difference between BPA and IDIQ?
BPAs are established with finite budgets, unlike IDIQs, meaning when an agency’s budget is used up, it can no longer purchase using the BPA. IDIQ contracts usually cover more ground in terms of offerings while BPAs tend to be for more specific categories and offerings.
Purchase Orders (PO)
What is the PO in a purchase order?
A purchase order (PO) is the official offer documenting the exact requirement of the buyer in terms of quality, quantity, performance, pricing and payment terms for the products or services. It is issued by buyers to their suppliers.
The order is an offer by the Government to the supplier to buy certain supplies or services upon specific terms and conditions. The PO falls under the simplified acquisition procedures.
Delivery Orders (DO)
What is a delivery order in government contracting?
Delivery-order contract means a contract for supplies that does not procure or specify a firm quantity of supplies (other than a minimum or maximum quantity) and that provides for the issuance of orders for the delivery of supplies during the period of the contract.
Definitive Contracts
What does definitized contract mean?
Means the agreement on, or determination of, contract terms, specifications, and price, which converts the non-definitive contract to a definitive contract. Definitive contract means any contract that must be reported to FPDS other than an indefinite delivery vehicle. This definition is only for FPDS, and is not intended to apply to part 16.
Government-Wide Acquisition Contract (GWAC)
What type of contract is a GWAC?
GWAC stands for Government Wide Acquisition Contract, which is a type of federal contract vehicle that allows contractors to sell to all government agencies using a central contract managed by a single agency.
A government-wide acquisition contract (GWAC) is a contract in which multiple government agencies purchase products or services together with the goal of paying lower costs. GWACs are typically used to purchase new technology and are utilized primarily for information technology solutions.
What is the difference between a GWAC and IDIQ?
Governmentwide Acquisition Contracts (GWAC) are a form of IDIQ, but they can apply to multiple Government agencies instead of just one of them.
Indefinite Delivery / Indefinite Quantity (IDIQ) Contract
What is an indefinite delivery indefinite quantity contract?
Indefinite delivery, indefinite quantity contracts provide for an indefinite quantity of services for a fixed time. They are used when GSA can’t determine, above a specified minimum, the precise quantities of supplies or services that the government will require during the contract period.
In U.S. Federal government contracting, IDIQ is an abbreviation of the term indefinite delivery/indefinite quantity. This is a type of contract that provides for an indefinite quantity of supplies or services during a fixed period. IDIQs are also sometimes called “Task Orders” or “Delivery Order Contracts.”
What is the difference between a contract and an IDIQ?
An IDIQ contract is a contract in which contractors provide an indefinite quantity of products or services over a specified period of time. IDIQs allow the government to establish a contract from which multiple orders can be placed for products or services over the length of the contract.
Indefinite Delivery / Requirements Contract
What is an indefinite-delivery vehicle?
Indefinite Delivery Vehicles (IDVs) enable you to negotiate stable, long-term contracts while maintaining flexible delivery schedules and order quantity commitments. You can use IDVs to specify negotiated prices for your items before actually purchasing them.
Indefinite delivery, indefinite quantity contracts provide for an indefinite quantity of services for a fixed time. They are used when GSA can’t determine, above a specified minimum, the precise quantities of supplies or services that the government will require during the contract period.
Indefinite Delivery / Definite Quantity Contract
Description. A definite-quantity contract provides for delivery of a definite quantity of specific supplies or services for a fixed period, with deliveries or performance to be scheduled at designated locations upon order.
Application. A definite-quantity contract may be used when it can be determined in advance that contains:
- A definite quantity of supplies or services will be required during the contract period; and
- The supplies or services are regularly available or will be available after a short lead time.
Federal Supply Schedule (FSS)
What is a federal supply schedule FSS contract?
The GSA Schedule, also known as Federal Supply Schedule, and Multiple Award Schedule (MAS), is a long-term governmentwide contract with commercial companies that provide access to millions of commercial products and services at fair and reasonable prices to the government.
A Federal Supply Schedule is a GSA schedule contracting office issued publication containing the information necessary for placing Delivery Orders with Schedule contractors. Ordering offices issue delivery orders directly to the schedule contractors for the required supplies and services.
Multiple Award Schedules (MAS)
Most Federal Supply Schedules are Multiple Award Schedules (MAS). Under MAS contracts, GSA awards contracts to multiple companies supplying comparable services and products at varying prices. The FSS operates over 100 different schedules covering most product and service categories.
Multi-Agency Contracts (MACs)
Task Order or Delivery Order contracts established by one Agency for use by Government Agencies to obtain a variety of supplies and services.
Contractor Team Arrangement (CTA)
Contractor Team Arrangement (CTA) is an arrangement between two or more GSA Schedule contractors to work together to meet agency requirements. The CTA document is a written agreement between team members detailing the responsibilities of each team member.
The CTA allows the contractor to meet the government agency needs by providing a total solution that combines the supplies and/or services from the team members’ separate GSA Schedule contracts. It permits contractors to complement each other’s capabilities to compete for orders for which they may not independently qualify. A customer benefits from a CTA by buying a solution rather than making separate buys from various contractors.
Request for Quotation (RFQ)
A document that an organization submits to one or more potential suppliers eliciting quotations for a product or service. Typically, an RFQ seeks an itemized list of prices for something that is well-defined and quantifiable, such as hardware.
Request for Proposal (RFP)
A document that solicits proposal, often made through a bidding process, by an agency or company interested in procurement of a commodity, service, or valuable asset, to potential suppliers to submit business proposals.
Request for Information (RFI)
A standard business process whose purpose is to collect written information about the capabilities of various suppliers. Normally it follows a format that can be used for comparative purposes.
Micro Purchases
An acquisition of supplies or services using simplified acquisition procedures, the aggregate amount of which does not exceed the micro-purchase threshold. The micro-purchase threshold is $2,500.00.