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Basic Ordering Agreement (FAR Part 16.7)

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

References

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