Business Strategy – Basic Ordering Agreements (BOA)

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Small Businesses will want to consider contracting options that are available as part of your business strategy.  One of those options is a Basic Ordering Agreement (BOA) otherwise known as a BOA.  No, a BOA in this instance is not a snake.

Small Businesses will want to consider contracting options that are available as part of your business strategy.  One of those options is a Basic Ordering Agreement (BOA) otherwise known as a BOA.  No, a BOA in this instance is not a snake.

A Basic Ordering Agreement (BOA) is a written agreement of understanding, negotiated between the government and a contractor.  This agreement includes terms and clauses applicable to future task orders awards as well as a statement of work or products needed.  In addition, this document will also contain the methods for pricing, issuing and delivering of future task orders.  A BOA is NOT a contract.

Why does the Government Use a BOA?

A Basic Ordering Agreement is used for rush supplies or services when specific quantities and prices are unknown at the time the agreement is signed. The government anticipates that the need for a sizeable number of products or services covered by the agreement. Basic Ordering Agreements (BOAs)  are used to reduce administrative lead-time.

I have seen the U.S. Army Corps of Engineers use BOAs on a variety of construction projects. The Contracting Officer will have a maximum contract amount and a specific period.  A BOA will end when the maximum contract value or specific period has ended. A BOA is a great option available depending on the products or services you provide.  Most importantly, t is another excellent vehicle that small businesses can use as part of their business strategy.

What terms does the Basic Ordering Agreement Contain?

The BOA will contain the method to price to the supplies or services.  It will include the delivery terms and conditions and list one or more government agencies authorized to issue orders under the agreement.  The BOA will also specify when each order becomes a binding contract.  Remember that the BOA will be reviewed before the effective date at least annually.  The only way to make changes to the BOA is to change the agreement.  Any modifications to the BOA will not retroactively impact previous orders issued.

As you are developing your business strategy for government contracting it is advisable to research the Federal Acquisition Regulation (FAR) and educate yourself on the different types of contracts. Besides that the better educated you are on the FAR the better decisions you can make when dealing with the government.  For more information on the BOA, please see FAR 16.703.

Websites

FAR 16.703. Basic Ordering Agreements

 

 

 

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