qualified sources of supply to cover anticipated small
Definition of Small Business
purchases of the same general category. BPAs
A small business concern means a concern,
eliminate the necessity of issuing individual purchase
including its affiliates, that is independently owned
orders by providing that purchases may be made by
and operated, not dominant in the field in which it is
placing oral calls or issuing informal memorandums
bidding on government contracts, and is qualified as a
when more convenient. Maximum use of BPAs is
s m a l l bu s i n e s s u n d e r c e r t a i n c r i t e r i a a n d s i z e
encouraged and recommended, when appropriate.
standards as outlined in NAVSUP P-560.
Conditions for Use of BPAs
For purchases up to ,000, a dealer is
considered to be a small business if it has 500
All BPA agreements are issued as bilateral,
employees or less and is furnishing any domestically
t wo - p a r t y s i g n a t u r e d o c u m e n t s . M a j o r fi e l d
produced or manufactured product.
purchasing activities and other Navy field contracting
system (NFCS) activities that have been granted such
Competition and Price Reasonableness
authority are authorized to place BPAs when there is a
repetitive need for similar supplies or services and
It is the responsibility of the Storekeeper or buyer
when the use of the BPA is administratively more
to make sure every purchase is made at a fair and
economical and efficient than any other small
reasonable price, and the government gets what it
purchase method. Normally, BPA calls may not
pays for in terms of quality and delivery.
exceed ,000, However, ICPs may place BPA calls
PURCHASES LESS THAN
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,000.--These
up to ,000, and calls for subsistence are unlimited
purchases must be distributed equitably over a period
as to dollar value.
of time among qualified suppliers. When possible, a
The use of a BPA does not authorize purchases
quotation is solicited from other than the previous
that are not otherwise authorized bylaw or regulation.
supplier before placing a repeat order. Purchases less
For example, the use of a BPA does not justify sole
than
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,000 may be made without soliciting
source purchasing or avoiding small business-small
competition and/or documenting any price if the
p u r c h a s e s e t - a s i d e s . T h e r u l e s o f d i s t r i bu t i n g
contracting officer finds no reason to question the
purchases among qualified suppliers for purchases
fairness and reasonableness of the price.
not in excess of
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,000 and for seeking competitive
When the buyer can determine one quote fair and
quotations for purchases in excess of
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,000 apply to
reasonable, the additional expense in time and
each call under a BPA.
administrative costs is not worthwhile in seeking
If there is an insufficient number of BPAs to
additional quotes.
assure competition and equitable distribution of
PURCHASES MORE THAN
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,000.--For
business, the contracting officer should solicit
purchases in excess of
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,000, the storekeeper or
quotations from other sources for the immediate
buyer must solicit a reasonable number of quotations
purchase and take action to establish additional BPAs
(generally at least three) from qualified suppliers to
for future purchases. Like any other purchase, each
promote competition to the maximum extent possible
BPA call must be made on the basis of a purchase
and to make sure the purchase is advantageous to the
request.
government, as far as price and other factors are
concerned. Reasonable competition for small
Authorized BPA Callers
purchases can normally be obtained from the local
BPA calls may be made by any individual within
trade area.
t h e p u r c h a s i n g o ffi c e o f t h e c o m m a n d o f t h e
When possible, two sources not included in
contracting officer who entered into the BPA. In
previous solicitation should be requested to furnish
addition, the contracting officer who issued the BPA
quotations. If only one response is received, no
may authorize other activities that have been granted
additional quotations are needed if the price can be
contracting authority to place calls under his or her
determined fair and reasonable.
BPA.
BLANKET PURCHASE AGREEMENT
Only authorized personnel within purchasing
o ffi c e s m a y n o r m a l l y m a ke B PA c a l l s . To b e
The BPA method of small purchase is a simplified
approved, all individuals to be authorized to place
procedure of establishing charge accounts with
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