Contracting Cone
FAR Based Strategies
Federal Supply Schedules – FAR 8.4
Commercial Items – FAR 12
Simplified Acquisitions – FAR 13
Contracting by Negotiation – FAR 15
IDIQ – FAR 16.5
Letter Contract – FAR 16.603
Agreements – FAR 16.7
Small Business – FAR 19
BAA – FAR 35.016
SBIR/STTR
Commercial Solutions Opening (CSO)
Non-FAR Based Strategies
Other Transactions (OT)
Procurement for Experiments (2373)
R&D Agreements
Cooperative R&D Agreement (CRADA)
Partnership Intermediary Agreement (PIA)
Technology Investment Agreement (TIA)
Basic Ordering Agreement (FAR Part 16.7)
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. It includes a description of the product or services and the method for determining pricing, issuing, and delivering of future orders.
Common Applications
- Uncertain supplies or services requirements
- Expedite contracting when specific items, quantities, and prices are not known at time agreement is executed
- Substantial number of requirements covered by the BOA are anticipated to be purchased from the contractor
Pros |
Cons |
| Ability to establish pricing methodology for products and services reduces procurement lead time at the ordering level | May be changed only by modifying agreement itself, not by a contract incorporating the agreement |
| Ability to on-ramp new BOA holders any time increases flexibility to meet various mission requirements | |
| Ability to modify BOA without impacting previously issued orders provides maximum flexibility to acquisition programs | |
| Provides maximum flexibility to meet mission needs through competitive process with no minimum quantities or maximum ceiling limitations |
Restrictions
- Shall not state or imply future orders
- Shall not be used to restrict competition
- Must describe method for determining prices
- Must include delivery terms and conditions
- Must list one or more gov agencies authorized to issue orders
- Must specify point at which each order becomes a binding contract
- Failure to reach agreement on price for any order issued before price is established is a dispute under the Disputes clause
- Contracting officer shall not authorize contractor to begin work on an order under a BOA until prices have been established unless order establishes a ceiling AND procedures for pricing identified OR urgent and compelling government need
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