What Are Blanket Purchase Agreements (BPAs)
Government contracting can be painfully slow, but Blanket Purchase Agreements (BPAs) cut through the red tape, making it easier for agencies to get what they need—fast. A BPA is a flexible, long-term agreement between a government agency and a vendor, designed to streamline the purchasing process for frequently needed goods or services. Instead of issuing individual contracts for every individual purchase, agencies establish a BPA to call up pre-approved vendors whenever necessary—without drowning in paperwork.
How BPAs Keep Procurement Moving
Some things are just a given—offices need supplies, facilities need maintenance, and agencies handling major projects need ongoing access to materials. BPAs (which can sometimes be a blanket purchase order) make sure those essentials are covered without the constant hassle of renegotiating contracts. Need more paper? No problem. Another round of maintenance work? Covered. Gravel for a construction project where the final amount is anyone’s guess? Just pull from the BPA.
Now, imagine if the government had to negotiate a new contract every time for repetitive needs like printer ink or janitorial services. The paperwork alone on this repetitive purchasing would be enough to cause another procurement crisis. Worse, they’d probably end up ordering more filing cabinets just to store it all. That’s exactly why BPAs exist—creating a simplified acquisition threshold for recurring purchases and keeping procurement moving.
Why Do Agencies Use BPAs?
BPAs typically extend from an existing contract and come with predefined pricing, making procurement predictable and efficient. They help federal agencies plan spending in advance, ensuring budgets stay on track.
Unlike other contract vehicles like Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, BPAs operate on a limited budget and cover a specific range of products or services. Once established, approved vendors supply goods or services up to the BPA’s funding cap. And while IDIQs require upfront funding commitments, BPAs don’t—giving agencies more flexibility in managing their budgets.
BPAs can be a useful tool to cut out the nonsense, giving agencies a structured way to get what they need when they need it, without the headache of endless procurement cycles.
Common Types of BPAs
Not all BPAs work the same way. There are several types, each designed to fit different procurement needs. To make sense of it all, let’s break down the key differences:
Traditional BPAs
The government’s way of saying, “We know we’ll need a bunch of these, so let’s just make it official.” These agreements let agencies streamline the procurement process for frequently needed goods and services. No more negotiating every single order—just place and go.
BPAs Under the MAS Program
The Multiple Award Schedule (MAS) program, managed by the General Services Administration (GSA), lets agencies set up BPAs with pre-vetted vendors who already have a GSA Schedule contract. Translation: If you’re in, you’re playing with the big leagues of federal procurement.
Single-Award vs. Multiple-Award BPAs
Government buyers must decide between giving all the business to one vendor (single-award BPA) or spreading it across several (multiple-award BPA).
- Single-Award BPAs mean one vendor wins it all. This simplifies the ordering process, but the government rarely likes putting all its eggs in one basket. In most cases, single-award BPAs won’t exceed $100 million unless the contracting officer justifies it with extra paperwork. Also, these BPAs can’t last more than one year but may have up to four one-year options.
- Multiple-Award BPAs keep things competitive. The government selects a handful of vendors, and each order placed under the BPA is competed among them. This setup gives agencies more flexibility with pricing and ensures vendors stay on their toes.
GSA Schedule BPAs
BPAs under GSA Schedules make it easier for agencies to buy from a trusted pool of vendors. If you’re selling office supplies, IT services, or janitorial work, a GSA BPA is a major advantage. These agreements typically last up to five years but can be extended if needed. The catch? The terms of the BPA must align with the vendor’s existing GSA Schedule contract.
Who Should Care About BPAs?
BPAs are a smart procurement tool for both government agencies and businesses. They simplify purchasing for commonly used goods and services, making it easier for vendors to secure repeat business without the hassle of renegotiating every order. BPAs are particularly useful for:
- IT Services: Agencies rely on vendors for cybersecurity, software development, and cloud computing.
- Office Supplies and Equipment: Everything from desks and laptops to printer ink and whiteboards is pretty often in demand somewhere in the federal government.
- Janitorial and Maintenance Services: Government buildings need regular cleaning, repairs, and upkeep.
- Construction and Engineering: Whether it’s minor renovations or major infrastructure projects, agencies need reliable contractors.
- Professional Services: The government outsources consulting, HR support, financial analysis, and other specialized expertise.
What Should be Included in a BPA?
A BPA isn’t just an informal handshake—it needs clear terms to keep everything running smoothly and prevent procurement bottlenecks. And Federal Acquisition Regulation (FAR) requires a few things and a well-structured BPA should include:
- A project scope that answers: What’s covered, and for how long? The contract period should be clearly defined, outlining the products or services included and any limitations. No “we’ll figure it out later” nonsense.
- Even if the exact amount varies, agencies must define the types of goods or services covered and any estimated usage. Establishing these terms during the procurement process ensures vendors can plan accordingly.
- Fixed prices or pre-negotiated rates eliminate guesswork, providing cost certainty for both the agency and the vendor. The pricing will include a unit price and an end date on when it will expire.
- No one likes surprises when it comes to logistics, so a BPA needs to be clear on delivery and payment terms. The BPA should spell out everything from invoicing-purchase orders including order frequency, invoicing processes, discounts, acquisition procedures, and payment timelines. Agencies need to know how and when they’ll receive their purchases, and vendors need clarity on when they’ll get paid.
BPAs are considered complete when the purchases reach the agreed-upon budget limit or when the period of performance expires.
Benefits of BPAs
BPAs make government contracting smoother, faster, and more predictable. Here’s why potential government vendors chase them down:
- BPAs reduce paperwork and administrative costs by essentially consolidating the work of multiple contracts into one, streamlining the process for both agencies and vendors.
- They save time by eliminating the need to negotiate each order—once the BPA is in place, agencies can place orders without delay.
- With a BPA, agencies are committed to buying, making it a reliable source of business for vendors.
- BPAs enable cost savings through bulk purchasing, locking in favorable pricing for both sides.
- Pricing is fixed, protecting agencies from price increases.
A well-structured BPA protects agencies from price spikes (bet they were relieved not to be paying inflated toilet paper prices in early 2020). At the same time, BPAs offer flexibility. If demand changes—like when federal offices went remote and stopped needing bulk orders of office supplies—agencies aren’t stuck over-ordering just to meet a contract requirement.
Restrictions of BPAs
BPAs are convenient, but they’re not without their flaws. Here’s what you should know:
- Predicting future purchases is a gamble, and while agencies might try to forecast their needs, predicting the future is not their strong suit. Overestimating requirements can leave vendors scrambling to meet unrealistic demands, while underestimating can result in last-minute panic orders.
- Once prices are set, they’re locked—no renegotiating, no adjustments. If market prices drop, tough luck for the vendor. You’re stuck with what you agreed to upfront, even if it’s no longer competitive.
- If your past performance record with government contracts is a bit shaky, don’t expect to get a BPA anytime soon. Agencies want vendors they can rely on to execute flawlessly. Agencies don’t have time to babysit vendors. The whole point of BPAs is to simplify the process, which means they need dependable partners who don’t require constant hand-holding or additional oversight.
How Can We Help?
BPAs can be a powerful tool for small businesses looking to contract with the government, but navigating the process isn’t always straightforward. That’s where we come in. Whether you’re looking to secure your first BPA or optimize your existing agreements, Summit Strategy can help.
Contact us today if you want to start leveraging BPAs to grow your government contracting business.
Krystn Macomber
CP APMP Fellow, LEED
There’s magic in disrupting the ordinary. This is the philosophy Krystn brings to working with and empowering her clients. With a 20-year track record of helping global professional services enterprises, Krystn is redefining what’s possible for companies looking to elevate their marketing, pursuit, and business development operations. She is an industry leader, award winner, mentor, coach, and highly sought-after speaker.
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