buyer must solicit a reasonable number of quota-
tions (generally at least three) from qualified
suppliers to promote competition to the maximum
extent possible and to make sure the purchase is
advantageous to the government, as far as price
and other factors are concerned. Reasonable
competition for small purchases can normally be
obtained from the local trade area.
When possible, two sources not included in
previous solicitation should be requested to
furnish quotations. If only one response is
received, no additional quotations are needed if
the price can be determined fair and reasonable.
BLANKET PURCHASE AGREEMENT
The BPA method of small purchase is a
simplified procedure of establishing charge
accounts with qualified sources of supply to cover
anticipated small purchases of the same general
category. BPAs eliminate the necessity of issuing
individual purchase orders by providing that
purchases may be made by placing oral calls or
issuing informal memorandums when more
convenient. Maximum use of BPAs is encouraged
and recommended, when appropriate.
Conditions for Use of BPAs
All BPA agreements are issued as bilateral,
two-party signature documents. Major field
purchasing activities and other Navy field con-
tracting system (NFCS) activities who have been
granted such authority are authorized to place
BPAs when there is a repetitive need for similar
supplies or services and when the use of the BPA
is administratively more economical and efficient
than any other small purchase method. Normally,
BPA calls may not exceed ,000, However,
BPA calls up to ,000 may be placed by ICPs,
and calls for subsistence are unlimited as to dollar
value.
The use of a BPA does not authorize
purchases that are not otherwise authorized bylaw
or regulation. For example, the use of a BPA does
not justify sole source purchasing or avoiding
small business-small purchase set-asides. The rules
of distributing purchases among qualified sup-
pliers for purchases not in excess of
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,000 and
for seeking competitive quotations for purchases
in excess of
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,000 apply to each call under a
BPA.
If there is an insufficient number of BPAs to
assure competition and equitable distribution of
business, the contracting officer should solicit
quotations from other sources for the immediate
purchase and take action to establish additional
BPAs for future purchases. Like any other
purchase, each BPA call must be made on the
basis of a purchase request.
Authorized BPA Callers
BPA calls may be made by any individual
within the purchasing office of the command of
the contracting officer who entered into the BPA.
In addition, the contracting officer who issued the
BPA may authorize other activities who have been
granted contracting authority to place calls under
his or her BPA.
BPA calls may normally be made only by
authorized personnel within purchasing offices.
To be approved, all individuals to be authorized
to place BPA calls must have attended a
NAVSUP-approved small purchase course. In
addition, all individuals authorized must be
appointed as contracting officers (with authority
to place calls up to a certain limitation) via a
Certificate of Appointment, Standard Form 1402.
Establishment of BPAs
The contracting officer is responsible for the
establishment of BPAs. BPAs will be made with
contractors from whom numerous individual
purchases will be made over a given period. To
the maximum extent possible, BPAs for items of
the same type should be placed at the same time
with more than one supplier.
All competitive sources should be given an
equal opportunity. For example, if you have
repetitive requirements for electrical supplies, you
should establish BPAs with more than one
contractor who sells this type of material. You
can then distribute the calls among the BPA
holders for purchases not over
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,000 and obtain
competition from them for purchases over
||content||
,000.
IMPREST FUND
The IF purchase method is a simple and
economical way of effecting purchases not in
excess of 0. The IF method employs a cash
fund from which payments are made at the time
purchase transactions occur and to which reim-
bursements are made on a revolving basis. The
IF is in the custody of the IF cashier.
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