Bulk Funding and Obligating Part 13 BPA Calls without a known requirement

[T.Mattson]

I'm a relatively new 1105 Purchasing agent. I do not work for anyone in the contracting field.

I recently established a single award Part 13 BPA, total aggregate amount of calls NTE exceed $150k with a local small business lumber yard/home improvement center to provide supplies to a federally ran educational facility. I have been asked to award and obligate a $15k BPA Call for 1/4 of a year, 4 times a year ($60k annually) without having a list of supplies for the BPA Call. The facility would like to have the $15k awarded and obligated to this business; so the authorized individuals under this BPA would be allowed to go into the store a make purchases over the course of the 4 months, drawing down the $15k per 1/4. Does anyone think this is an appropriate use of a BPA Call?

To me this doesn't seem right but after many hours of searching on WIFCON and other searches I haven't found anything so far that prohibits this practice. Any help would be greatly appreciated.

[Jamaal Valentine]

T.Mattson:

Your question involves the rules about creating, funding, and recording obligations. Seems like they want an open-ended BPA call/order for supplies.

Based on the information you provided, this would be improper. The 'requirement of specificity' requires documentary evidence of a binding agreement for specific goods or services. An agreement that fails this test is not a valid obligation.

Reference the GAO Redbook, Chapter 7, Obligation of Appropriations (PRINCIPLES OF FEDERAL APPROPRIATIONS LAW). See also, FAR 11.002(a).

If you are DoD, check out the Fiscal Law Deskbook, Chapter 5, Obligating Appropriated Funds; and DoD Financial Management Regulation for departmental policies.

 

[Retreadfed]

Also, look at the discussion of bona fide needs.

[T.Mattson]

Thank you both.

Chapter 7 in the Redbook was very helpful, I also search GAO for "requirement of specificity" which led me to my next question.

How broad can you classify supplies in any sort of order, whether it be a PO, BPA Call, Contract etc.. to pass the test?

For example the a BPA completed by my predecessor was established for "Medical Supplies, OTC and Prescription Medications" in accordance with the same circumstances as the BPA in my initial post.

The first BPA Call was for $16k, with a PoP for an entire year. The description of supplies block states  " Misc wellness supplies including, but not limited to, student prescriptions, OTC medications, and other supplies as needed ".

Personnel as I stated above would place orders with the vendor against this award and the vendor would issue a summary invoice at the end of month and the PA would pay that invoice.

[Jamaal Valentine]

On 4/10/2018 at 6:59 AM, T.Mattson said:

How broad can you classify supplies in any sort of order, whether it be a PO, BPA Call, Contract etc.. to pass the test?

You may want to review FAR 10.001 and 11.002(a) for the policy on identifying and describing agency needs.

Remember, the use of vague or ambiguous requirements documents potentially impedes effective competition. So ask yourself, how 'broad' can you be while still conducting an effective competition.