Pursuing Blanket Purchase Agreements

A client recently wrote in, asking to clarify what a Blanket Purchase Agreement is, and how to prepare a Blanket Purchase Order. I’ll backtrack a bit by going over what a Blanket Purchase Agreement (BPA) is, how it differs from other agreements and how to be considered for a Blanket Purchase Agreement (BPA) program. I’ll wrap things up by addressing Blanket Purchase Orders.

What is a Blanket Purchase Agreement?

A Blanket Purchase Agreement is a pre-arranged agreement with an agency that is signed before any business is conducted. Awards can be made based upon a negotiated set of terms. In order to take part in a blanket purchase agreement, you must first be a part of the BPA program. If you’re looking at a government solicitation, you can tell if it was issued under the Blanket Purchase Agreement system because it will have letter “Z” in the ninth position of the solicitation number. If you’re looking at contract award data, it will have either an AA or AB in the ninth position of the award agreement number.

What is Typical of a Blanket Purchase Agreement?

As a vendor, you would compete for solicitations with delivery orders issued against the terms of the BPA. Here are some features of Blanket Purchase Agreements that you should know about:

• Some order specifics aren’t known in advance. Exact items, quantities, delivery requirements may vary considerably.
• Current contracts don’t exist for the required supply or service, so the agency isn’t obligated to pay for the purchase of any goods or services.
• There isn’t a need to write numerous purchase orders.
• Commercial sources for one or more offices are needed or the offices don’t have a need to otherwise purchase projects in a given area.

What are the Criteria for the Blanket Purchase Agreement Program?

If you wish to be considered for the Blanket Purchase Agreement program, you need to take into account these criteria:

• A past performance that is dependable
• A history of quality services or products that are offered at a lower price
• Numerous purchases have been supplied at or below the simplified acquisition threshold
• A status as an authorized distributor for a manufacturer, certified in a letter
• Capability to access electronic commerce/electronic data interchange (EDI Standard ANSI X 12)

How Do I Approach a Blanket Purchase Order?

Because specifics of blanket purchase agreements aren’t known in advance and many of the terms are negotiated, the best thing to do is to talk to the purchasing agent or consult your local PTAC regarding blanket purchase orders.

If you’re looking for the easiest way to stay on top of on-call services contracts, BPAs, or IDIQ contracts, consider a term contracts report. In one report, you’ll get important contact names, phone numbers, contract term dates, current provider names, renewal options and other key pieces of information to help you get in early, size up your market and be more competitive.