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Blanket Purchase Agreement

What Are Blanket Purchase Agreements (BPAs)?

A GSA Schedule Blanket Purchase Agreement (BPA) is an agreement established by a government buyer with a GSA Schedule contractor to fill repetitive needs for supplies or services.  BPAs are “charge accounts” that government buyers establish with GSA Schedule contractors to provide themselves with an easy ordering tool by taking advantage of quantity discounts, saving administrative time, and reducing paperwork. In addition, the ordering office reduces the administrative burden of writing numerous task/delivery orders, while still being able to order as much as it wants and as often as it wants.

By using a GSA Schedule BPA, government buyers and GSA Schedule contractors can:

  • Satisfy recurring requirements;
  • Reduce acquisition costs through quantity discounts;
  • Save time by eliminating repetitive, individual purchases and payments;
  • Reduce administrative efforts and paperwork;
  • Obtain better value by leveraging an ordering office’s buying power through volume purchasing;
  • Enable an ordering office to use streamlined ordering procedures with no dollar limitations on individual task/delivery orders;
  • Allow for quicker turnarounds on orders;
  • Permit an ordering office to incorporate terms and conditions not in conflict with the underlying contract.
  • FAR 8.405-3 gives preference to establishing multiple-award BPAs. After the BPAs are established, each order is competed among all BPA holders to ensure that fair opportunity is afforded to all.
  • Schedule BPAs do not require the obligation of funds. Funds are obligated when orders are placed against a BPA.

Here’s an example of a Blanket Purchase Agreement