BPA contractors

BPA price

BPA contracts are hard to find and even harder to win for many reasons. For example, an item may not be on contract, no one is watching eBuy or FBO, the price is not competitive, etc. That is why being a BPA contractor can be extremely profitable for business; of course, as long as you can secure a BPA Contract.

Knowing about the BPA opportunity is only the beginning, and once you decide to bid, you will need to prepare a complete offer proposal. The ability to prepare a complete, clean and competitive offer will put you at an advantage of getting an award. Price Reporter’s expertise and knowledge will help you increase your chances of getting BPA contracts and end up with your brand new GSA Blanket Purchase Agreement established.

What is FSSI by GSA

Federal Strategic Sourcing Initiative (FSSI) is a special type of BPA contract which offers an extraordinary opportunity for GSA Contract suppliers.

FSSI is a massive opportunity for GSA suppliers in specific industries to become “Priority Vendors” for all Government Agencies.

Governmentwide schedule BPAs

FSSI GSA

What does FSSI do for your company? Essentially, it makes suppliers in specific schedules “first call” mandatory vendors for the top buying agencies of the United States Government. For example, in 2018, 15 FSSI OS3 contractors sold over $70 million combined. Imagine how being a preferred FSSI BPA vendor would change your business?

As rewarding as the FSSI can be, navigating the process that is necessary to become an FSSI Contract holder is daunting. First there is the pre-qualification, then offer preparation, submission negotiation and award. Vendors must also make sure that the offer is complete, and compliant. Price Reporter has been successful with FSSI awards and management over the years, and we can help your company as well.

Schedule BPAs – What are they?

Blanket Purchase Agreement (BPA) is an “add-on” to the already awarded GSA Schedule contract. The purpose of the BPA is to simplify procurement of repetitive needs: various office supplies, software licenses, maintenance and repair services, and so on. This way, the government agency gets what it needs faster and more streamlined, without the need to preliminary coordinate such procurements with the vendor. On the other hand, a BPA contract is also beneficial for vendors, as it guarantees the constant flow of sales from the federal sources.

Governmentwide Schedule BPAs

Governmentwide BPAs are available to all federal agencies alike. The purpose of this type of BPA is to consolidate the same recurring needs in several categories available to all government agencies.

How are Schedule BPAs Different?

How are Schedule BPAs different from the traditional ones? The “normal” Blanket Purchase Agreements are regulated by the Federal Acquisition Regulations Part 13, whereas the same FAR Part 13 does not apply for GSA BPAs, which means that Schedule BPAs are not the subject to Simplified Acquisition Procedures. Instead, Schedule BPAs are regulated by FAR 8.405-3. 

So, what does it mean in layman’s terms? This means that government agencies are ordered to give preference to multiple-award Schedule BPAs over single-award BPAs. And that’s the main difference. Both vendors and federal agencies win from using Schedule BPAs first.

The main advantages of GSA Schedule BPAs over traditional Blanket Purchase Agreements are lower costs, faster order completion, lower administrative costs, and better control over the process.

Establishing Schedule BPAs

Here is what you need to know about the process of establishing Blanket Purchase Agreements.

When a federal buyer establishes a Schedule BPA, it follows FAR 8.405-3 as we said above. The procedure requires the buyer to solicit at and receive quotes from at least three vendors. With that minimum required choice, the buyer can seek further price reductions or make the final selection before establishing a Schedule BPA based on quality or performance terms.

Generally, federal buyers are not allowed to purchase from just one source. But if this happens – this situation is specifically called “sole source solicitation” – the FAR 8.405-6 clause comes into force. The buyer then needs to justify the limited choice. For instance, a specific brand can be chosen only if the government explicitly needs this particular brand only. And the buyer must explain why.

Terms and Conditions

Established GSA Schedule Blanket Purchase Agreements inherit all terms and conditions of the parent GSA Schedule contract. There cannot be any changes in the terms and conditions within the BPA that contradict the main contract. And conflicting clauses are resolved in favor of the main Schedule contract. However, if the BPA contains clauses or provisions that actually improve terms and conditions of the contract (i.e. provide faster delivery or lower rates), such clauses can be accepted. In case of any doubts or conflicts, please contact the GSA contracting officer.

Single-Award BPA Approval

Single-Award BPA is a Blanket Purchase Agreement awarded to only one contractor. A viable procurement option in the past, now single-award BPAs are only of limited use. The GSA specifically recommends federal buyers to give preference to multi-award BPAs when it comes to orders above a certain threshold. Single-award BPAs are only awarded for one year, with four consequent one-year options.

Additionally, if the estimated value of the order exceeds $112 Million including options, such a single-award BPA may not be awarded without the direct approval by the head of the agency. Specifically, a single-award BPA can only be approved if the products and services under the BPA are so integrally related to each other, that sharing the entire BPA between multiple contractors is either impossible or unreasonable.

While single-award BPAs are still cost-effective in some cases, multi-award BPAs get approved more often today.

Time Limitations

For multiple-award BPAs the time limitation is 5 years. However, according to FAR 8.405-3(d)(1) in some cases this limitation may be exceeded to “meet program requirements”.

The time limitation for a single-award BPA is one year, with four optional prolongations up to 5 years in total.

A curious question arises when a BPA is to be awarded to a Schedule contractor, but its current GSA Schedule contract is about to end before the end of the BPA. What is the course of actions in this case? 

The Schedule Contract FAR clause 52.216-22(d) states that “Any order issued during the effective period of this contract and not completed within that period shall be completed by the contractor within the time specified in the order. The contract shall govern the contractor’s and government’s rights and obligations with respect to that order to the same extent as if the order were completed during the contract’s effective period, provided that the contractor shall not be required to make any deliveries under this contract after the completion of customer order, including options, 60 months following the expiration of the basic contract ordering period.”

Put this simply, if your main Schedule contract expires, you still can (and must) finish orders placed within the BPA.

Importantly, aside from time limitations, vendors have to take care of compliance of the GSA Schedule BPA with the GSA’s requirements. Specifically, every year a federal buyer should review the Schedule BPA and make sure the underlying GSA contract is still in effect, and the contractor’s services and products still represent the best value. Also, federal buyers will annually check if there are some price reductions that can be applied to the BPA.

BPA Set Asides

The BPA set asides are still the subject to the terms of FAR 8.405-3. Note that setting aside a BPA for the above categories does not necessarily mean that such small business will be awarded. The socioeconomic status of small businesses is taken into consideration when identifying potential competition for a BPA award. And the buying agency should set aside at least one small business in each socioeconomic category, if available. Other small businesses are subjects to review and market research, as always.

Open Market Items

Can you sell to federal agencies open market items that are not within the scope of your existing Schedule BPA?