BPA - Total Limitation Increase

[WC79]

I recently received a question concerning BPA total dollar limitations and what action might be needed to increase that amount. My agency has a requirement that approaching the total dollar limitation and our program folks would like to increase the total dollar limitation. Understanding that a BPA is not a contract, does anyone have experience in handling situations like this.  

Ordinarily this would warrant a J&A to increase the total dollar amount or a within scope modification.

[C Culham]

28 minutes ago, WC79 said:

does anyone have experience in handling situations like this.  

Long time ago.  If talking BPA's done outside of GSA FSS then using the ideals of FAR 13.303-6, especially (b)(2), is the spring board for making an informed decision on increasing BPA limitations.  Or stated another way, with the change you might find out that your potential pool of those to put on a BPA could possibly change.  Not required but that is what quickly comes to mind for me.   Otherwise as you note the change on limitation could just be done without a J&A unless your agency has more constricting policy.

[ji20874]

BPA under Simplified Acquisition Procedures (FAR Part 13)

• A BPA using simplified acquisition procedures of FAR Part 13 need not have a ceiling -- a ceiling is not a mandatory part of a BPA.  The limitation is that each purchase under the BPA not exceed (a) the simplified acquisition threshold for purchases of non-commercial items; (2) $7.5 Million for commercial items; or (3) other limits under special circumstances.  
• If you are talking about a BPA using simplified acquisition procedures of FAR Part 13, and you imposed a ceiling on yourself, well, you did it to yourself but you didn't need to.

BPA under Federal Supply Schedules (FAR Subpart 8.4)

• A BPA under schedules need not have a ceiling -- only an estimate is required -- and since it is only an estimate, an agency can issue orders that go beyond the estimate (provided the estimate was a good faith estimate at the time the BPA was established).  If the agency does exceed the estimate, it should seek additional price reductions.
• If you are talking about a BPA under Federal Supply Schedules of FAR Subpart 8.4, and you imposed a ceiling on yourself, well, you did it to yourself but you didn't need to.  If you did impose a ceiling, and you now want to exceed it, you might need a LSJ (not a J&A).

The Takeaway:  Do not self-impose a ceiling when establishing a BPA -- it isn't required!

 

 

[WC79]

Just curious. In the instance of a self imposed ceiling why would a LSJ be needed? 

[ji20874]

You mentioned J&A in your original posting, but in the world of FAR Subpart 8.4, a LSJ is used. 

If we're talking about a competitively-established BPA under FAR Subpart 8.4, and if the self-imposed ceiling was declared in the RFQ used to establish the BPA, it seems to me that the ceiling set the bounds of the scope of the BPA.

[ji20874]

As an aside, if the reason you need to increase the ceiling is because of equitable or other adjustments under contract clauses such as the Changes clause, Government Property clause, Government Delay of Work clause, and so forth, you probably do not need to increase your ceiling -- these are already allowed by the actionable contract clauses.  But I am supposing that this is not the case, and that you want to raise the ceiling so that you can order additional supplies or services.

Why do you need to raise the ceiling?  Your reason will drive the answer as the best way to proceed.  For example--

• to order additional supplies or services
• to cover a cost-overrun
• to cover an equitable or other adjustment under a contract clause
• because the work isn't finished, and the contractor needs more money
• other: __________