Blanket Purchase Agreement (BPA) Guide 2025: How Government BPAs Work
Learn how Blanket Purchase Agreements work in federal contracting. Understand BPA types, how to get on a BPA, and strategies for winning BPA call orders.
Quick Answer: What is a BPA?
A Blanket Purchase Agreement (BPA) is a simplified ordering method that establishes "charge accounts" with qualified vendors. BPAs streamline recurring purchases by pre-negotiating terms and pricing. They're commonly used for supplies, services, and commercial items where the government anticipates repetitive needs.
What is a Blanket Purchase Agreement?
A BPA is not a contract—it's an ordering agreement that establishes pricing, terms, and conditions for future purchases. Think of it as setting up a "store account" with pre-approved vendors.
BPA Characteristics
What a BPA Is
- • Pre-established ordering vehicle
- • Simplified acquisition method
- • Negotiated prices and terms
- • Recurring purchase mechanism
What a BPA Is Not
- • Not a binding contract
- • No guaranteed minimum
- • Not obligated funds
- • No work guarantee
BPAs are governed by FAR Subpart 13.3 and are considered a form of simplified acquisition. They're particularly useful for reducing administrative burden when the same items or services are purchased repeatedly.
Types of BPAs
Single-Award BPA
One vendor receives all orders under the BPA:
- →No call order competition
- →Faster ordering process
- →Best for specialized needs
Multiple-Award BPA
Several vendors share the BPA:
- →Competition for each call
- →Better pricing through competition
- →More opportunities for vendors
BPAs by Underlying Contract
GSA Schedule BPA
Established against existing GSA Schedule contracts. Uses pre-negotiated Schedule pricing and terms. Most common type for IT and professional services.
Open Market BPA
Established directly with vendors not on GSA Schedule. Requires more competition during establishment but offers more flexibility.
Federal Supply Schedule BPA
Leverages any federal supply schedule. Common for supplies, equipment, and commercial services.
How BPAs Work
The BPA Process
Agency Identifies Need
Agency anticipates recurring requirements for similar items or services
BPA Establishment
Agency solicits, evaluates, and establishes BPAs with qualified vendors
Call Order Issued
When need arises, agency issues call order to BPA holder(s)
Quote Submission
For multiple-award BPAs, holders submit quotes; single-award proceeds directly
Work Performance
Selected vendor performs work and invoices against the BPA
BPA Order Thresholds
Orders below micro-purchase limit may not require competition. Above SAT requires more formal procedures.
Getting on a BPA
The path to getting on a BPA depends on whether it's a GSA Schedule BPA or open market BPA.
GSA Schedule BPA Requirements
- 1.Hold active GSA Schedule contract
- 2.Have relevant SINs/products listed
- 3.Respond to BPA solicitation
- 4.Demonstrate capability and past performance
- 5.Offer competitive Schedule pricing
Open Market BPA Requirements
- 1.Active SAM.gov registration
- 2.Respond to RFQ/solicitation
- 3.Submit competitive pricing
- 4.Provide capability evidence
- 5.Pass responsibility determination
Finding BPA Opportunities
BPA establishment solicitations are posted on SAM.gov. Search for terms like "BPA," "Blanket Purchase Agreement," or "ordering agreement." Many agencies also post Sources Sought notices before formal solicitation.
Winning Call Orders
Once you're on a BPA, the real work begins—competing for and winning individual call orders.
Call Order Win Strategies
Respond Quickly
BPA call orders often have short turnaround times—sometimes 24-48 hours. Have templates ready and be prepared to respond fast.
Price Competitively
BPA calls are often lowest-price technically acceptable (LPTA). Know your costs and price to win while maintaining margins.
Build Relationships
Get to know the ordering contracting officers. Attend industry days and maintain communication between orders.
Deliver Excellence
Performance on previous orders influences future awards. Exceed expectations to become the preferred vendor.
Benefits of BPAs
For Contractors
- ✓Pre-qualified status
- ✓Faster ordering process
- ✓Reduced competition (vs open market)
- ✓Recurring revenue opportunity
- ✓Relationship building
For Government
- ✓Reduced administrative burden
- ✓Faster procurement
- ✓Pre-negotiated pricing
- ✓Known vendor quality
- ✓Simplified ordering
Frequently Asked Questions
Is a BPA a contract?
No—a BPA is an ordering agreement, not a contract. Individual call orders placed under a BPA create contractual obligations. The BPA itself just establishes terms and pricing for future orders.
Do BPAs have spending limits?
BPAs don't require maximum ceilings like IDIQs. However, agencies may establish internal limits for management purposes. Individual call orders must comply with applicable thresholds.
How long do BPAs last?
BPAs typically run 5 years but can vary. GSA Schedule BPAs cannot extend beyond the underlying Schedule contract expiration. Agencies review BPAs annually to ensure continued need.
Can small businesses get BPAs?
Yes—agencies often establish small business set-aside BPAs or include small business pools. Having a GSA Schedule significantly increases your chances of being included on Schedule-based BPAs.
What's the difference between a BPA call and a task order?
Terminology differs but function is similar. BPAs use "calls" or "call orders." IDIQs use "task orders" (services) or "delivery orders" (supplies). Both are mechanisms to order work under the parent vehicle.
Find BPA Opportunities
Track BPA establishment solicitations and Sources Sought notices with BidFinds. Get notified when agencies seek new BPA holders.
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