2. 1 Fundamentals of Blanket Purchase Agreements Breakout Session # E03 Name: Barbara Kinosky, Esq. Date: Tuesday, July 31 st Time: 2:30 PM – 3:45 PM

3. Certified Schedules Contracts Manager (CSCM) Certificate Program 2

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5. 4 Requirements include: Completion of 3 required classroom courses Completion of 1 online course* Completion of 3 electives Government and industry tracks Certified Schedules Contracts Manager (CSCM) Certificate Program

6. 5 Attendees at this session will receive a certificate of completion that can be used to fulfill the online course requirement. -- Please make sure we have scanned your badge or provide your name and email address to receive your certificate. Certified Schedules Contracts Manager (CSCM) Certificate Program

7. 6 For more information go to: http://www.centreconsult.com/fci/cscm.asp Certified Schedules Contracts Manager (CSCM) Certificate Program

8. 7 Fundamentals of Blanket Purchase Agreements

9. Topics 8 1.Introduction to Blanket Purchase Agreements 2.The Advantages of Using BPAs 3.Establishing BPAs 4.Competitive Procedures for Establishing BPAs 5.Procedures for Placing Orders 6.Small Business Issues 7.Best Practices for Schedule BPAs

10. Introduction to Blanket Purchase Agreements 9

11. What is a Blanket Purchase Agreement (BPA)? 10

12. A BPA is a simplified method of filling anticipated repetitive needs for services and supplies. 11 Introduction to Blanket Purchase Agreements

13. 12 What Kind of BPA? Under GSA SchedulesNon-GSA BPAs What part of the FAR? FAR 8.405-3FAR Part 13

14. FAR 8.405-3 states that ordering activities may establish BPAs under any Schedule contract to fill recurring needs. 13 Introduction to Blanket Purchase Agreements

15. 14 The Advantages of Using BPAs

16. 15 1.Convenience, efficiency, and reduced costs. 2.Contractual terms and conditions are pre-negotiated in the GSA Schedule contracts. 3.BPAs eliminate open market costs as the search for sources, the need to prepare solicitations, and the requirement to synopsize the acquisition is eliminated.

17. 16 Establishment of BPAs

18. 17 BPAs Under GSA Schedules are Established Under FAR 8.405-3.

19. Single or Multiple BPAs 18 BPAs may be established with one or more Schedule contractors in accordance with FAR 8.405-3. The FAR establishes a preference for multiple-award BPAs rather than single-award BPAs. The number of BPAs to be established is within the discretion of the ordering activity.

20. 19 Establishment of BPAs The $103 Million Dollar Issue!

21. 20 No single-award BPA with an estimated value exceeding $103 million (including any options), may be awarded unless the head of the agency determines in writing that – The orders expected under the BPA are so integrally related that only a single source can reasonably perform the work; The BPA provides only for firm fixed priced orders for: Products with unit prices; Services with prices established in the BPA for specific tasks to be performed; Only one source is qualified and capable of performing the work at a reasonable price to the Government; or It is necessary in the public interest to award the BPA to a single source for exceptional circumstances. Establishment of BPAs

22. File Documentation Requirements in Awarding BPAs: 21 1.Schedule contractors considered 2.Description of supplies or services 3.Price 4.Justification for a limited-source BPA (FAR 8.405-6) 5.Determination for single-award over $103 million (FAR 8.405-3(a)(3)(ii) 6.Single or multiple award decision 7.Use of competition procedures (discussed next) 8.Basis for award

23. Practice Note: 22 When establishing multiple-award BPAs, the ordering activity shall specify the procedures for placing orders under the BPAs.

24. Best Value Considerations in Making the Award: 23 In addition to price when determining best value, the ordering activity may consider: 1.Past performance. 2.Special features of the supply or service required for effective program performance. 3.Trade-in considerations. 4.Probable life of the item selected as compared with that of a comparable item. 5.Warranty considerations. 6.Maintenance availability. 7.Environmental and energy efficiency considerations. 8.Delivery terms.

25. Competitive Procedures for Establishing BPAs 24

26. Two Different Procedures: 25 Procedures for Supplies and Services Not Requiring a Statement of Work (SOW) Procedures for Services Requiring a Statement of Work (SOW)

27. Competitive Procedures for Establishing BPAs 26 Let’s start with the Procedures for Awarding BPA’s for Supplies and Services Not Requiring a Statement of Work (SOW).

28. Supplies/Services (no SOW) – Under Simplified Acquisition Threshold (SAT) – FAR 8.405-3(b)(1)(i) 27 Ordering Activity Contracting Officer Shall: 1.Consider reasonably available information by surveying at least 3 schedule contractors on GSA Advantage or catalogs or pricelists or requesting 3 quotes. 2.Document circumstances for restricting competition to less than 3. 3.Award on best value.

29. Supplies/Services (no SOW) - Estimated Value of the BPA Exceeds the SAT – FAR 8.405-3(b)(1)(ii) 28 Ordering Activity Contracting Officer Shall: Provide RFQ. Post RFQ on e-Buy. OR Provide RFQ to as many schedule contractors as is practicable to reasonably ensure 3 quotes from contractors that can fulfill requirements. When fewer than 3 quotes are received CO shall prepare a written determination explaining that no additional contractors capable of fulfilling requirements despite reasonable efforts to do so. Ensure all quotes are fairly considered. Seek price reduction.

30. Restricting Competition 29 If in either case (over or under SAT) the competition has been restricted then the circumstances for restricting consideration to fewer than three schedule contractors must be documented based on one of the reasons at 8.405-6(a).8.405-6

31. What are the Reasons for Restricting Competition? 30 Urgent and Compelling Need Only One Source Logical Follow-on Work

32. Summary – BPA for Supplies or Services with No SOW 31 Type of Procurement Competition Required Award Simplified Acquisition Review 3 prices on GSA Advantage Best Value Above SAPPost RFQ or provide directly to contractors to ensure 3 quotes Award made consistent with RFQ

33. BPAs for Services Requiring a Statement of Work – FAR 8.405-3(b)(2) 32 These procedures apply when establishing BPAs for services priced at hourly rates.

34. Requirements: 33 Statements of Work (SOWs). The ordering activity shall develop a statement of work. Type-of-order preference. The ordering activity shall specify the order type (i.e., firm-fixed price, time-and-materials, or labor-hour) for the services identified in the SOW. Request for Quotation procedures. The ordering activity must provide a RFQ, which includes the statement of work and evaluation criteria (e.g., experience and past performance), to schedule contractors that offer services that will meet the agency’s needs. The RFQ may be posted on e-Buy.

35. Debriefing Requirements: 34 After award, ordering activities should provide timely notification to unsuccessful offerors. If an unsuccessful offeror requests information on an award that was based on factors other than price alone, a brief explanation of the basis for the award decision shall be provided.

36. Ordering From BPAs 35

37. Single-Award BPA 36 If the ordering activity establishes a single-award BPA, authorized users may place the order directly under the established BPA when the need for the supply or service arises.

38. Multiple-Award BPAs 37 Orders at or below the micro-purchase threshold. The ordering activity may place orders at or below the micro-purchase threshold with any BPA holder that can meet the agency needs. The ordering activity should attempt to distribute any such orders among the BPA holders.

39. Orders Exceeding the Micro-Purchase Threshold but Not Exceeding the Simplified Acquisition Threshold 38 The ordering activity must provide each multiple-award BPA holder a fair opportunity to be considered unless one of the exceptions at 8.405-6(a)(1)(i) applies.8.405-6 The ordering activity need not contact each of the multiple- award BPA holders before placing an order if information is available to ensure that each BPA holder is provided a fair opportunity to be considered for each order. The ordering activity Contracting Officer shall document the circumstances when restricting consideration to less than all multiple-award BPA holders offering the required supplies and services.

40. Orders Exceeding the Simplified Acquisition Threshold 39 The ordering activity shall— 1.Provide an RFQ to all BPA holders offering the required supplies or services under the multiple- award BPAs; 2.Afford all BPA holders responding to the RFQ an opportunity to submit a quote; and 3.Fairly consider all responses received and make award in accordance with the selection procedures.

41. BPAs and Hourly-Rate Services 40 If the BPA is for hourly-rate services, the ordering activity shall develop a statement of work for each order covered by the BPA. Ordering activities should place these orders on a firm-fixed price basis to the maximum extent practicable.

42. Summary 41 Preference for firm fixed price orders.

43. Duration of BPAs 42 Multiple-award BPAs generally should not exceed five years in length, but may do so to meet program requirements. A single-award BPA shall not exceed one year. It may have up to four one-year options.

44. Small Business Issues 43

45. The small business preference programs in FAR Part 19 are not mandatory for GSA Schedules. 44 Small Business Issues

46. FAR 8.405-5 Small Business 45 Ordering activity Contracting Officers may, at their discretion— (i) Set aside orders for small business concerns. (ii) Set aside BPAs for small business concerns.

47. Best Practices for Schedule BPAs 46

48. Best Practices 47 1.Drafting 2.Preference for Multiple Award 3.Price Reductions 4.Competition

49. Conclusion - Questions? 48 Contact Us: Barbara Kinosky: bkinosky@centreconsult.combkinosky@centreconsult.com Debbie Hoffman: dhoffman@centreconsult.comdhoffman@centreconsult.com