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Glossary · U.S. federal

Blanket purchase agreement (BPA)

A blanket purchase agreement (BPA) is a simplified way to fill expected repetitive needs by setting up "charge accounts" with qualified sources (FAR 13.303-1).

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Definition

A blanket purchase agreement (BPA) is a simplified way to fill expected repetitive needs by setting up "charge accounts" with qualified sources (FAR 13.303-1). It is not a contract until an order is placed against it.

BPAs can also be set up under GSA schedule contracts (FAR 8.405-3): multiple-award BPAs generally run up to five years, single-award BPAs one year plus up to four one-year options.

How it differs

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    vs. Indefinite delivery, indefinite quantity contract (IDIQ)

    An IDIQ guarantees a minimum order; a BPA guarantees nothing until each call is placed. What is IDIQ?

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Questions

What does BPA mean in procurement?

A blanket purchase agreement (BPA) is a simplified way to fill expected repetitive needs by setting up "charge accounts" with qualified sources (FAR 13.303-1). It is not a contract until an order is placed against it.

What is the difference between BPA and IDIQ?

An IDIQ guarantees a minimum order; a BPA guarantees nothing until each call is placed.

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