So what is the end result? A BPA is in fact a list of the prices for which the supplier can accept the government injunction. Think about how a catalogue is; only because the item is present on the page does not mean that it is still in stock or available at that price. It is simply a price for a good or service; a simple invitation to enter into a formal agreement. (iii) to sign or obtain the current justifications and authorizations, as well as all findings and findings, and to meet other requirements covered in point 1.602-1 (b), as if the contract were a contract entered into independently of a basic order agreement. b) asks. A basic order agreement can be used to expedite the conclusion of a contract for uncertain supply or service requirements when certain items, quantities and prices are not known at the time of the contract, but a considerable number of requirements for the type of supplies or services covered by the agreement are likely to be purchased by the contractor. Under the right circumstances, the application of these procedures can save money on parts ordering for equipment assistance, reducing administrative delays, inventory investments and aging due to design changes. c) restrictions. In a basic order agreement, no government agreement is granted for the award of future contracts or contracts with the contractor or to restrict competition in any way. If the buyer requests only one source (i.e.
a “single source”), the order activity must justify its activity in accordance with FAR 8.405-6, Limited Sources Justification and Approval. By identifying a single source of EPS, the purchaser has limited consideration of the number of contractors likely to receive both EPS and the resulting markets. As a result, they must meet THE limited sources and authorization requirements of FAR 8.405-6 at the time of the BPA allocation. The allocation of a framework order allows a customer to hold no more inventory at any time than necessary and avoids the administrative burden associated with processing more frequent orders, while favouring discounted prices due to volume commitments or price interruptions. On the supplier side, a framework contract can offer the advantage of ensuring day-to-day activity and helping suppliers better predict future cash flows and orders.  [Citation required] 2. Each basic order contract is reviewed and, if necessary, reviewed each year prior to the anniversary of its entry into force, to meet the requirements of this regulation.