BPA contractors

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BPA Contractors

What is a government BPA?

Blanket Purchase Agreement (BPA) is a supplemental contract to an existing GSA contract, designed to simplify the method of filling anticipated repetitive government procurement of supplies or services. Having a BPA contract helps contractors increase their revenue stream and become preferred vendors, with one or more government agencies.

What is BPA contract?

BPA contract is a GSA Schedule contract that implies simplified BPA procurement.

Specifically, several BPA advantages are:

  • Faster procurement with quicker turnaround thanks to streamlined purchase mechanisms
  • Low or no minimum orders with the minimum threshold of $25 and no processing fee
  • Federal buyers can use the GSA SmartPay card to purchase items quickly

For a vendor, though, the main advantage of Blanket Purchase Agreements is that the holder of GSA FSSI BPA contract goes straight to the “shortlist” of federal agencies. This means that you (if you are a BPA contractor) will be a preferred source of purchase. And there are other benefits too.

BPA contractors benefits:

  • Last year, BPA contracts produced a total of $400 million ~ in sales
  • BPA contract can either be for one or for many products, that are usually discounted from regular contract price
  • The product proposed for BPA must be on bidding vendor’s GSA contract
  • Government promises to buy large quantities, at locked prices, for a number of years (1, 4 or 5), with options to renew
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    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

    Currently, GSA offers FSSI governmentwide BPA for companies in the following industries:

    • Office supplies (OS4)
    • Janitorial and Sanitation supplies (JanSan)
    • Building Maintenance and Operations (BMO)
    • Wireless
    • Domestic Delivery Service
    • Maintenance, Repair, and Operations (MRO)

    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.

    Find out more about securing business with the United States Government.
    Contact us today at 201.567.6646 or provide a few details below and we can schedule a free, one-hour consultation.
    Contact our GSA Expert
    Call 201.567.6646 or provide your details for a free consultation:

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      Frequently Asked Questions
      What is a GSA BPA?

      A blanket purchase agreement (BPA) is a simplified acquisition method that government agencies use to fill anticipated repetitive needs for supplies or services. Essentially, BPAs are like “charge accounts” set up with trusted suppliers.

      While almost everyone knows that BPA stands for Blanket Purchase Agreement, much fewer people really understand what it is. Put this simply: a blanket purchase agreement allows the government to automatically place an order under the established BPA, to quickly refill an ongoing need for recurrent supplies, or receive products and services within multiple delivery dates. Examples of such are office, sanitation, and janitorial supplies, software, and so on.

      What does BPA mean in government contracting?

      A BPA is a more advanced way to do business with government where the quantity and the delivery is more certain than with a standard GSA or DLA contract where the quantity and the delivery is indefinite (IDIQ). The BPA is just a way to simplify common purchasing thru a more organized channel, where both government and contractor know what to expect from one another.

      The main elements of a BPA are:

      Administrative part – explaining about contractor and their past performance supporting the requirements set by the government language.

      Technical proposal – providing clear evidence of contractors’ capability to follow all the posted rules;

      Price Proposal – offer of product or service for a set price with specified discounts in return for promise of volume and other guaranties made by the government to those who win the bid – “BPA Contract Award”.

      There are two types of BPAs, traditional and GSA Schedule BPAs. In this article we’ll be focusing on traditional BPAs — i.e., those that exist outside of GSA Schedule contracting.

      The Blanket Purchase Agreement mechanism allows federal buyers to minimize administrative workload required to purchase recurrent supplies . The ordering process within BPAs is greatly simplified and streamlined, allowing the federal agencies to just do their work without the need to waste time on unnecessary bureaucracy and contract documents review, while saving time and taxpayers’ money.

      What is the difference between a BPA and a contract?

      A BPA is an agreement, not a contract; each Call must be funded. … On the other hand, an IDIQ is a type of contract in which the exact date of delivery or the exact quantity or a combination of both, is not specified at the time the contract is executed.

      The main difference is that Blanket Purchase Agreement is an agreement, not exactly a contract. You see, a contract implies certain obligations of both sides. While the BPA does not require a buyer to place an order under BPA or to fund it. In fact, the blanket purchase agreement merely states that one party of the agreement can arbitrarily place orders and the other party should do its best to deliver what’s ordered under the terms and conditions, for the price both parties have agreed beforehand.

      How does a BPA work?

      Whenever a need arises during procurement for some supplies or services, on a recurrent basis, a BPA may be established under any existing Schedule contract. The type and category of the Schedule do not matter. All requirements to the contract and to the contractor remain the same. This includes warranty, past performance and past experience evaluation, delivery terms, prices etc.

      The buyer establishes a BPA in accordance with FAR 8.405-3. At least three contractors must be selected to receive quotes from. The BPA clauses cannot alter, modify or contradict to terms and conditions of the source GSA Schedule contract. However, the federal buyer can add new conditions to the BPA. The common additions in the BPA include the frequency of ordering, discounts, additional requirements not specified in the main contract, delivery locations, and lead time.

      After the BPA is established, further purchases made under this BPA become much simpler and faster for both the contractor and the federal agency. The “minimum documentation” principle greatly reduces the administrative burden for both sides. Specifically, a contracting officer should provide the following bare minimum of information:

      • Schedule contract to which the BPA is awarded
      • Description of products or services ordered
      • Prices
      • Justification for a limited-source BPA if applicable. Normally, the buyer must give preference to Multiple-Award BPAs whenever possible. However, sometimes fewer contractors are able to perform the work or are qualified for it. In such cases, a single-award BPA greater than $100 million must be justified as stated in FAR 8.405-6.
      • Documentation for the product
      • Basis for the award decision

      Importantly, the duration of blanket purchase agreements cannot exceed 5 years, but it may exceed the duration of the contract as long as there are available prolongation options for the contract. Another thing worth mentioning and remembering is that a contracting officer may (and generally should) periodically review the BPA for compliance and determine whether it continuously offers the best value.

      What is a contract vehicle definition?

      A contract vehicle is a method, by which the government can purchase goods and products, and a way for companies to sell products and services to the government. Examples of contract vehicles are:

      • GSA Schedule contract
      • MAS Schedule contract, where the company is a subcontractor of some other GSA contract holder
      • Blanket Purchase Agreement
      • Set-aside contract
      • etc.

       

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