Sometimes in federal contracting the terminology we use seems to describe actions that are either identical or are so similar as to be indistinguishable. That appears to be the case with “BPA” and “IDIQ.” But while these two documents (you will note I did not say “contracts”) function in a similar fashion, they have several significant differences.
To start with, a BPA is not a contract. It is not legally binding on either party (i.e., the Government does not have to purchase from the contractor, nor does the contractor have to perform unless he accepts the Government Purchase Order under a BPA). Rather the BPA is a predetermined agreement between the government agency and the seller regarding how purchases will be ordered, priced, and delivered over a set period of time. Under the BPA, each Purchase Order (PO) is a separate contract only after it has been accepted by the contractor. Each PO has all three elements of a contract: (1) offer (in this case, the Government offers to buy something from the contractor); (2) acceptance (by the contractor’s signature and return of the PO); and (3) consideration (some form of payment). Under a BPA the agency is not required to issue any orders to the BPA holder, since there is no minimum requirement. On the other hand, there is no requirement for the contractor to perform either, until the contractor “accepts” the PO. Once signed, it requires performance by the contractor and payment by the government, just like any other contract.
FAR 13.303, Blanket Purchase Agreements, states that BPAs are “…a simplified method of filling [an agency’s] anticipated repetitive needs for supplies or services by establishing “charge accounts” with qualified sources of supply…” for commercial products and services. Under BPAs, not only are the quantities and delivery requirements unknown (as in IDIQ contracts), but the exact items are also not known in advance and may vary considerably. Contracting Officer’s often use BPAs to reduce the need for writing numerous purchase orders when there is no existing contract that they are required to use for the same supplies and services. There are no maximum or minimum requirements under BPAs. Use of the BPAs is generally restricted to the agency or agencies specified, and is usually for providing the products and services that that specific agency requires for daily operations. BPAs are generally awarded to multiple offerors to ensure sufficient industry base to meet agency needs.
Unlike BPAs the central IDIQ contract document requires that a minimum order amount be purchased by the government within the time frame stated and may be for either commercial or non-commercial products and services, and establishes a maximum order quantity. Under an IDIQ contract, the contractor is required to perform (no ability to decline performance) within the parameters of the overall contract and the specifics of the TO/DO once all terms and conditions are agreed upon for the individual TO/DO.
IDIQ contracts under FAR 16.500, Indefinite Quantity Contracts, have become one of the most popular contract vehicles. They give Contracting Officers the flexibility to make streamlined purchases of wide variety of products and services once one or more IDIQ contracts are awarded. Some IDIQs are awarded to multiple contractors (Multiple Award Task Order Contracts (MATOCs)) and some to individual contractors (Single Award Task Order Contracts (SATOCs)). IDIQs can be restricted to only the issuing agency or can be open to all agencies for use in placing Orders.
The table below gives you a snapshot of BPAs vs IDIQ contracts.
| IN SUMMARY | |
| BPA | IDIQ |
| · Not a contract, but an Agreement. Each PO becomes an individual contract. | · Is a contract requiring award of the first Order obligating money |
| · Used for commercial products/services requiring repetitive purchases | · Used for commercial or non-commercial products and services |
| · Multiple awards, restricted to use by the issuing agency | · Multiple or single awards; can be used by other agencies to meet their needs |
| · No minimum or maximum ordering quantities | · Includes minimum and maximum ordering quantities |
| · Contractor may decline to accept the government’s offer to purchase. | · Contractor must perform Orders issued within the parameters of the contract |
It’s important to understand the difference between these two unique contracting tools and what you’ve actually “won” when you receive an award. Each of these tools gives you a “foot in the door” so to speak to continue to compete to provide the agency specified products and services although in a much smaller competitive pool (i.e., only those BPA and IDIQ holders). But there’s no guarantee you will actually get anything at all under the BPA and only the minimum order quantity under the IDIQ.