Contracts & Legal

Basic Ordering Agreement

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A Basic Ordering Agreement (BOA) (FAR 16.703) is a written instrument of understanding, negotiated between an agency or contracting activity and a contractor, that:

  • Contains contract clauses applying to future contracts between the parties during its term
  • Contemplates separate future contracts that will incorporate by reference or attachment the required and applicable clauses agreed upon in the basic ordering agreement.
  • Contains methods for pricing, issuing and delivering future orders
  • Contains a description of supplies and services to be provided

This agreement may be used to expedite contracting for uncertain supplies or services when specific items, quantities, and prices are not known at the time of agreement is executed, but a substantial number of requirements are anticipated to be purchased from the contractor.

The BOA is NOT a contract

Each basic ordering agreement shall: [2]

  • Describe the method for determining prices to be paid to the contractor for the supplies or services;
  • Include delivery terms and conditions or specify how they will be determined;
  • List one or more Government activities authorized to issue orders under the agreement;
  • Specify the point at which each order becomes a binding contract (e.g., issuance of the order, acceptance of the order in a specified manner, or failure to reject the order within a specified number of days);
  • Provide that failure to reach agreement on price for any order issued before its price is established
  • If fast payment procedures will apply to orders, include the special data required by FAR 13.403

Why use a BOA: [1]

  • Used to expedite contracting for uncertain requirements when specific quantities and prices are not known at time of execution of agreement
  • Substantial number of requirements for the type of supplies or services covered by the agreement are anticipated to be purchased
  • Procedures can result in economies and reduce administrative lead-time

When placing orders issued under a BOA, the Contracting Officer should: [1]

  • Issue orders for required supplies or services covered by the BOA after competition
  • Ensure the use of the BOA is not prejudicial to other offers if the order is placed after competition
  • Signs or obtains any applicable justifications and approvals, and any determination and findings, and complies with other requirements as if the order were a contract awarded independently of the BOA
  • Issue orders on appropriate contractual instruments
  • Incorporate by reference the provisions of the BOA
  • Cite the applicable FAR authority for requirements not competed
  • Comply with FAR synopsis requirements
  • Neither make any final commitment nor authorize the contractor to begin work on an order until prices have been established

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