BPA – Blanket Purchase Agreement is another form of government contracting. Like other purchasing formats BPAs eliminate the need for the government to search and price compare in the open market arena. The government uses BPAs for repetitive orders from an awarded supplier or contractor.
It’s important to understand that BPAs are linked to the GSA Schedule terms and conditions. BPA awards provide the government buyers with approved business links to establish ongoing purchases of services or products. Depending on the limitations of the BPA, businesses may have the ability to sell their services or products to other participating government offices in the system across the USA.
Businesses may also identify additional discounts with specific levels of purchase. This approach to business may entice the government to take advantage of additional cost savings. Critical for the small business is to ensure discount amounts are competitive and profitable for the company.