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Ordering under the Federal Supply Schedule
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Contract Type Matrix

Basic Ordering Agreement
FAR 16.703

A basic ordering agreement, or BOA, is a written instrument of understanding negotiated between the Government and a contractor. It is not a contract. A BOA contains terms and clauses that will apply to future contracts or orders between the parties during its term, a description of the supplies or services to be provided, and methods for pricing, issuing, and delivering future orders.

A BOA may be used to expedite contracting for supplies or services 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. When used appropriately, BOAs can reduce administrative lead time, inventory investment, and inventory obsolescence due to design changes.

Common Applications

  • Uncertain supplies or services requirements
  • Recurring requirements where specific items, quantities, and prices are not known when the BOA is established
  • Situations where a substantial number of requirements are anticipated from the contractor
  • Requirements where establishing pricing, ordering, and delivery methods in advance can reduce administrative lead time

 

Pros

Cons
Establishes terms, clauses, pricing methods, ordering procedures, and delivery methods in advance. A BOA is not a contract and does not authorize work or obligate funds by itself.
Can reduce administrative lead time for future orders. The BOA may be changed only by modifying the agreement itself, not by individual orders issued under it.
Can support recurring needs when exact items, quantities, and prices are uncertain. Future orders must still comply with competition, justification, publicizing, and approval requirements as if awarded independently.
May reduce inventory investment and obsolescence when requirements change due to design updates. The contracting officer generally may not authorize work until prices are established, unless a ceiling price and required pricing procedures or urgent need conditions are met.
Modifying a BOA does not retroactively affect orders previously issued under it. A BOA must not be used to restrict competition or imply that future orders will be placed.

Restrictions

  • Must not state or imply that the Government will place future contracts or orders with the contractor.
  • Must not be used to restrict competition.
  • Must describe the method for determining prices.
  • Must include delivery terms and conditions or explain how they will be determined.
  • Must list one or more Government activities authorized to issue orders under the agreement.
  • Must specify the point at which each order becomes a binding contract.
  • Must provide that failure to reach agreement on price for an order issued before price is established is a dispute under the Disputes clause.
  • If fast payment procedures will apply, the BOA must include the special data required by FAR Part 32.
  • Before issuing an order under a BOA, the contracting officer must obtain competition in accordance with FAR Part 6, ensure the BOA is not prejudicial to other offerors if the order follows competition, obtain any required justifications, approvals, and determinations and findings, and comply with applicable FAR Part 5 publicizing requirements.
  • The contracting officer must not make a final commitment or authorize work until prices are established unless the order establishes a ceiling price and either the BOA includes adequate procedures for timely pricing or the need is compelling and unusually urgent. An entire order must never be priced retroactively.

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