Contracting Cone

FAR Subpart 16.7 addresses policies and procedures for establishing and using basic agreements and basic ordering agreements. A basic agreement or basic ordering agreement is a written instrument of understanding negotiated between the Government and a contractor, but it is not itself a contract. FAR 16.7 also notes that FAR Part 12 contains additional coverage for BPAs, and FAR Part 35 contains additional coverage for basic agreements with educational institutions and nonprofit organizations.

The two main agreement strategies are:

A basic agreement contains contract clauses that will apply to future contracts between the parties during its term. It contemplates separate future contracts that will incorporate the agreed-upon clauses by reference or attachment. Basic agreements are useful when the Government expects to award a substantial number of separate contracts to a contractor during a particular period and significant recurring negotiating problems have been experienced with that contractor.

A basic ordering agreement contains terms and clauses for future contracts or orders, a description of the supplies or services to be provided, and methods for pricing, issuing, and delivering future orders. BOAs may be used to expedite contracting when specific items, quantities, and prices are uncertain at the time the agreement is executed, but a substantial number of requirements for the covered supplies or services are anticipated.

Restrictions

• A basic agreement must not cite appropriations or obligate funds.
• A basic agreement must not state or imply that the Government will place future contracts or orders with the contractor.
• A basic agreement must not be used to restrict competition.
• A BOA must not state or imply that the Government will place future contracts or orders with the contractor.
• A BOA must not be used to restrict competition.
• Orders under a BOA must still comply with applicable competition, justification, publicizing, and documentation requirements as if the order were awarded independently.

Resources

• FAR Subpart 16.7 Agreements
• FAR 16.702 Basic Agreements
• FAR 16.703 Basic Ordering Agreements
• DFARS 216.703 Basic Ordering Agreements
• DFARS PGI 16.703 Basic Ordering Agreements
• Interagency Contract Directory (ICD), General Services Administration
• Contract Formation: Basic Agreements and Basic Ordering Agreements, Federal Acquisition Insitutue