In accordance with Federal Acquisition Regulation (FAR) 8.405-3, federal agencies may establish BPAs under any GSA Schedule contract. A GSA Schedule BPA simplifies the filling of recurring needs for supplies (products) and services, while leveraging a customer's buying power by taking advantage of quantity discounts, thus saving administrative time and reducing paperwork. Contractual terms and conditions are contained in GSA Schedule contracts and are not to be re-negotiated for GSA 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:
- Provide opportunities to negotiate improved discounts
- Satisfy recurring requirements
- Reduce administrative efforts by eliminating repetitive, individual orders and payments
- Let customers obtain better value by leveraging buying power through volume purchasing
- Enable ordering activities to use streamlined ordering procedures
- Permit ordering activities to incorporate Contractor Team Arrangements (CTAs)
- Allow for quicker turnarounds on orders
- Permit ordering activities to incorporate terms and conditions not in conflict with the underlying contract
A BPA can be set up for field offices across the nation, thus allowing them to participate in a customer's BPA and place orders directly with GSA Schedule contractors. In doing so, the entire agency reaps the benefits of additional discounts negotiated into the BPA.
A multi-agency BPA is also permitted if the BPA identifies the participating agencies and their estimated requirements at the time the BPA is established.