Securing a Blanket Purchase Agreement (BPA) from a federal agency can be a game-changer for government contractors, offering numerous advantages that can significantly enhance their business operations and growth potential. According to the Federal Acquisition Regulation (FAR) 8.450-3, a BPA allows buyers and sellers to establish a working relationship to meet the recurring needs of the government

One of the most immediate benefits of a BPA is the streamlined procurement process it provides. By reducing administrative hurdles and accelerating order placements, BPAs make it easier for contractors to do business with federal agencies. The pre-negotiated terms and pricing simplify transactions, allowing for quicker and more efficient fulfillment of government needs.

A BPA also ensures a steady stream of business opportunities. With a BPA in place, agencies can place orders whenever they need the contractor’s products or services, leading to a more consistent revenue flow. This reliability can be crucial for contractors looking to stabilize their cash flow and plan for future growth.

Additionally, holding a BPA positions a contractor as a preferred supplier, which can be a significant competitive advantage. Being recognized as a go-to provider not only enhances a contractor’s visibility and credibility within the government contracting community but also gives them a distinct edge over competitors when federal agencies are looking to fulfill recurring needs.

Operational efficiency is another key benefit of having a BPA. The predictability of orders allows contractors to plan and allocate resources more effectively, leading to potential cost savings and improved performance. This efficiency benefits both the contractor and the federal agency, fostering a mutually beneficial relationship.

Furthermore, a BPA helps build long-term relationships between the contractor and the agency. This ongoing partnership can lead to future contracts and renewals, ensuring continued business and growth. The stability and reliability that come with a long-term BPA can be invaluable for contractors looking to establish a strong foothold in the federal market.

Given these substantial benefits, it’s crucial for contractors to not only secure a BPA but also to strive to extend its life as much as possible. Doing so ensures that they can continue to reap the rewards of this advantageous agreement, supporting sustained growth and long-term success.

Understand the Impact of MAS Contract Expiration on your BPA

If a Multiple Award Schedule (MAS) contract expires, the associated Blanket Purchase Agreement (BPA) usually ends as well. However, in some cases, the BPA might continue beyond the contract’s expiration, depending on whether there are ongoing orders that need to be completed under  FAR 52.216-22(d) which denotes:

d) Any order issued during the effective period of this contract and not completed within that period shall be completed by the Contractor within the time specified in the order. The contract shall govern the Contractor’s and Government’s rights and obligations with respect to that order to the same extent as if the order were completed during the contract’s effective period; provided, that the Contractor shall not be required to make any deliveries under this contract after _______________ [insert date]

This provision only allows for the contractor to finish any orders already in progress, but it doesn’t allow for new task orders to be issued under the expired contract. Once the contract expires , GSA will remove it from its website, preventing the contractor from competing for new contracts.

It’s essential to start the process of renewing your GSA Schedule contract well before the expiration date to avoid any lapses that could disrupt your ability to fulfill existing orders or compete for new opportunities. At Coley GCS, our advisors usually begin renewal actions 9 to 12 months before the contract’s expiration of our client’s GSA contracts. This proactive approach ensures a smooth transition and continuous eligibility, allowing you to maintain your BPA and keep your business on track without interruption.

Getting a BPA Awarded with a MAS Contract Expiring Soon?

A BPA can be awarded to a MAS contract holder as long as the MAS contract will not expire during the term of the BPA.  Schedules can have a total life of 20 years which includes the initial 5-year contract with 3 options to renew.  If the MAS contract is set to expire prior to the determined end date of the BPA and there are no more options remaining on the MAS contract, then the BPA will more than likely not be awarded to the schedule holder.

When planning for long-term procurement strategies, it’s crucial for companies to understand the limitations and opportunities presented by their Multiple Award Schedule  contracts, especially when pursuing BPAs.

If a company is approaching the expiration of its MAS contract, the ability to secure a BPA may be jeopardized if no contract renewals or extensions are available. This can directly impact the company’s ability to compete for and secure government business. Conversely, by maintaining a continuous MAS contract or holding two concurrent contracts, a company ensures it can fulfill current orders under a BPA and remain eligible for new BPA opportunities, thereby maximizing its potential for sustained growth and government contracting success.

How to Purse a Continuous Contract?

A continuous contract allows a contractor to hold two MAS contracts under one unique entity identifier (UEI) with the same Special Item Numbers (SINs). This can be established with a GSA Streamlined Offer if it closely mirrors the original contract.

To have continuous contracts, the following document:  Request to Hold Continuous Contracts must be completed. This form will then be attached and submitted along with the new offer. The older contract will remain active for a set period to allow for the completion of any current orders and will subsequently be cancelled or allowed to expire. Generally, the set period for a BPA with an expired MAS is one day after the order period of the BPA.

Keep in mind that continuous contracts will only be awarded to successful MAS contractors. To be deemed successful, the contract holder needs to have met the minimum sales requirements and have satisfactory past performance under their existing contract.  If you want to know if you are a good candidate for a GSA Schedule Streamlined Offer, book some time to talk with us and we can discuss your situation and help you determine eligibility. Being awarded a continuous contract will allow contractors to preserve the integrity of their business by meeting the needs of the government buyer regardless of looming expiration dates.

Coley has 24 years’ experience helping thousands of companies obtain and maintain their GSA Schedule. We are available to help make the process easy. Contact us today at hello@coleygsa.com, by phone at 210-402-6766, or book a time to discuss how to get started on obtaining your GSA Schedule—a critical step on your road to success in the government market.

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