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Government Contracting

Understanding Blanket Purchase Agreements: A Comprehensive Guide

December 2, 2024

Blanket Purchase Agreements (BPAs) are valuable tools in federal contracting that help streamline the procurement process for repetitive needs. Understanding how they work can give your business a significant advantage in government contracting.

What is a Blanket Purchase Agreement?

A BPA is an agreement established under schedule contracts to fill recurring needs for supplies or services. They're designed to help agencies save time and money by simplifying the purchasing process for repetitive requirements.

Best Value Considerations

Key Factors

  • Past performance
  • Special features required
  • Trade-in considerations
  • Warranty coverage
  • Maintenance availability
  • Environmental considerations
  • Delivery terms

Award Preferences

Agencies typically prefer establishing multiple-award BPAs to maintain competition and ensure best value.

Single-award BPAs exceeding $100 million require special approval and justification.

Duration and Review Requirements

Time Limits

  • Multiple-award BPAs: Generally up to 5 years
  • Single-award BPAs: 1 year with up to 4 one-year options

Annual Reviews

Agencies must review BPAs annually to verify:

  • Schedule contract remains active
  • BPA still represents best value
  • Potential for additional price reductions

Required Documentation

Every BPA file must include:

  • Schedule contracts considered
  • Description of supplies/services
  • Price documentation
  • Justification for limited-source BPA (if applicable)
  • Award decision rationale
  • Evaluation methodology used
  • Price reasonableness determination

Ready to Explore BPA Opportunities?

Learn how to participate in federal contracting and compete for BPA opportunities.