Contracting Cone

Basic Agreement (FAR 16.702)


A written instrument of understanding (not a contract) containing pre-negotiated contract clauses that will be applicable to future procurements between the parties during the term of the agreement. The basic agreement contemplates separate future contracts that will incorporate the required and applicable clauses agreed upon in the basic agreement.


Common Applications

  • Supplies or services
  • Substantial number of separate contracts anticipated
  • Significant recurring negotiating problems have been experienced with contractor





Ability to on-ramp new agreement holders any time increases flexibility to meet various mission requirements May be changed only by modifying agreement itself, not by a contract incorporating the agreement
Ability to modify or discontinue agreement and not affect existing contracts incorporating agreement increases flexibility to program offices



  • Shall not cite appropriations or obligate funds
  • Shall not state or imply future orders
  • Shall not be used to restrict competition
  • Contracts incorporating basic agreements shall include a scopeĀ of work and price, delivery, and other appropriate terms
  • Contract modifications shall incorporate the most recent basic agreement, applicable only to work added by the modification