FDA STAFF MANUAL GUIDES, VOLUME III - GENERAL ADMINISTRATION
PROCUREMENT AND SUPPLY MANAGEMENT
BLANKET PURCHASE AGREEMENTS
|3. Conditions For Use|
|4. Competition and Pricing|
|5. Required Sources of Supplies and Services|
|6. Establishing Blanket Purchase Agreements|
|7. Terms and Conditions for Blanket Purchase Agreements|
|9. Register Log of Call-Orders|
|10. Maintenance of Blanket Purchase Agreement Files|
Attachment A - Blanket Purchase Agreement Request
The purpose of this guide is to provide a uniform procedure for establishing, administering and completing Blanket Purchase Agreements (BPA's) in an efficient and economical manner.
NOTE: BPA's have a call-order limitation of $2,500, the micro-purchase limitation. The preferred method for purchasing and paying for micro-purchases is the Government-wide commercial purchase card, the IMPAC Card (SMG 2610.15). Normally, BPA's will only be established with suppliers from whom purchases cannot be made with an IMPAC card. However, if a justification is submitted with the BPA request, a BPA may be established with a vendor who accepts the IMPAC card.
A blanket purchase agreement (BPA) is a simplified acquisition procedure for filling anticipated repetitive needs for supplies or services equivalent to establishing a charge account. BPA's reduce the administrative costs of simplified acquisitions by eliminating the need for issuing individual purchase documents. Purchases are made by verbal telephone call-orders, and terms and conditions are agreed upon in advance and apply to all call-orders for the duration of the BPA.
BPA's are particularly appropriate where there is a repetitive need for small quantities of supplies or services of closely related types available from one source but the exact items, quantities, and delivery requirements are not known in advance and may vary considerably. These may be office supplies, technical books, electrical supplies, laboratory supplies, miscellaneous hardware items, etc.
A. As the call-order limitation is the micro-purchase threshold of $2,500, purchases may be made without soliciting competition if the authorized individual placing the call- order considers the price to be fair and reasonable. Multiple BPA's are beneficial in helping to determine price fairness and reasonableness, as well as the best price.
B. Under no circumstances shall a known requirement be purchased on a split basis to avoid the $2,500 limitation.
C. Items considered to be accountable personal property, as defined in FDA Staff Manual Guide 2620.2, shall not be purchased under a BPA.
D. The vendor's name, provided with the BPA request, is considered to be a suggested source unless accompanied by a written justification which states the reasons why that vendor is the only one that can meet the government's needs.
Prior to establishing a BPA, the contract specialist shall screen the list of anticipated supplies and services to be acquired under the BPA for availability from stock or a required source of supply. Those available from a required source will not be included in the BPA. The order of priority is:
Supplies- (i) Federal Prison Industries, (ii) the Committee For Purchase From People Who Are Blind or Severely Disabled (iii) wholesale supply sources of GSA, Defense Logistics Agency, and the Department of Veterans Affairs, and (iv) Federal Supply Schedules; and -2- Services- (i) the Committee for Purchase From People Who Are Blind or Severely Disabled, (ii) Federal Supply Schedules, and (iii) Federal Prison Industries.
A. The activity (program office) requiring a BPA shall submit a memorandum requesting a BPA be established. The memorandum shall include:
1. supplies or services needed;
2. period of performance;
3. suggested vendor's name, address and telephone number;
4 .names of individuals authorized to place call-orders;
5. justification for the BPA, e.g., the vendor does not accept the IMPAC card; and
6. a copy of the Miscellaneous Obligating Document (MOD) funding the BPA. The individual placing the call is responsible for assuring that sufficient funds are available.
B. The request should be submitted to the procurement office servicing the region, center or office as follows:
Division of Contracts and Procurement Management- Information Technology Branch, HFA-511,
Division of Construction and Agency Support Contracting-Construction and Facilities Contracting Branch, HFA-531;
NCTR Contracts Branch, HFT-322; or
Regional Procurement Office.
C. Purchasing agents should contact suppliers and establish agreements to provide the anticipated types of supplies or services as requested, and arrange for:
- securing maximum discounts;
- documenting individual purchase transactions;
- periodic billings; and
- incorporating the required terms and conditions.
D. Suppliers should be considered whose past performance has shown to be dependable, who offer quality supplies or services at consistently lower prices, and who have provided numerous purchases at or below the simplified acquisition threshold.
E. BPA's are formalized on an Order for Supplies or Services, Optional Form 347 or Form FDA 3303, with the terms and conditions attached. The amount of funds available to the BPA (that shown on the Miscellaneous Obligating Document) will not be entered. No dollar amount will appear on the order. It is the responsibility of the caller to assure that funds are available when the call-order is made.
F. The contracting officer shall assign a BPA number that is unique to that agreement. The BPA number, at a minimum, indicates that it is a BPA, identifies the region, center or office that initiated it, tells what number BPA it is for that organization, gives the fiscal year, and tells what order it is against that BPA. For instance:
BPA-ATL-1-99(2) is the second order against BPA-ATL-1-99, which is Atlanta's first BPA for FY 99; and
BP6003-00-00-JS-00 is the third BPA in FY 2000 for ORA. It contains other information specific to ORA.
G. Once the BPA has been established, the contract specialist shall forward a copy of the award document, the Form 3303 showing the name of the vendor and the BPA number, to the program office and to the Office of Financial Management (OFM). The copy to OFM should include a copy of the original MOD to assist OFM in crediting funds to the BPA and in processing invoices for payment.
A. The type of supplies or services to be covered under the agreement and the period of time covered shall be specified. The period shall never extend beyond a given fiscal year.
B. The Government will be obligated only to the extent of orders placed under the agreement by the individuals authorized to place call-orders. The names of such individuals shall be provided to the vendor.
C. The prices quoted to the Government will be as low as, or lower than, those charged the suppliers' most favored customers for similar quantities and delivery terms, less any discounts for prompt payment.
D. No accountable or sensitive property shall be purchased against this agreement.
E. No individual order under this agreement shall exceed the call-order limitation, nor shall the total dollar amount for orders placed exceed the total funded by MODs.
F. Prices will be obtained orally.
G. Shipments under this agreement shall be accompanied by delivery tickets or sales slips which shall contain the following minimum information:
1. name of supplier.
2. identifying order number.
3. date of call-order.
4. identification of the individual placing the call.
5. itemized list of supplies furnished.
6. quantity, unit price, and extension for each item, and
7. date of delivery or shipment.
H. A summary invoice shall be submitted at least monthly, or upon expiration of the BPA, for all deliveries made during the billing period, identifying the delivery tickets covered therein and stating their total dollar value. The invoice shall be supported by receipted copies of the delivery tickets or sales slips.
A. The call-order limitation is $2,500, the micro-purchase limitation. For construction orders, the call-order limitation is $2,000.
B. When placing a call-order, callers need to verify pertinent information with the vendors to ensure prices are current and any shipping or special handling charges are in accordance with the call-order limitation and/or other terms and conditions.
A BPA register/log of call-orders must be maintained for each BPA by the respective program office. Individual call-orders placed against the BPA are recorded as placed, using minor variances in estimated transportation charges, the actual price that the vendor will be billing shall be reflected in the register of call-orders.
The register of call-orders must be maintained by the quarter, and a copy submitted to the contracting officer in the servicing procurement office no later than the 5th working day after the end of each quarter. The contracting officer will enter the total expenditures for BPA call-orders issued in the quarter into the small purchase system - Summary of Contract Action Report ($25,000 or less).
The program offices shall maintain separate BPA folders. Each BPA folder shall contain the following:
1. One side of the folder shall contain a copy of the memorandum requesting the BPA and a copy of the MOD funding it. A copy of the signed BPA, Optional Form 347 or Form FDA 3303, shall be filed on top. Requisitions for individual orders placed under the BPA shall be filed in sequence on top of the BPA. Any subsequent MOD's adding funds shall be filed as received.
2. The opposite side of the folder shall contain a Register of Call-Orders reflecting funding of the BPA and orders placed under the BPA. As orders are placed, they shall be assigned consecutive numbers and recorded in the register. The register shall show each order placed and the remaining balance after each order has been placed.