Streamline Your Invoice Agreement for Procurement

Invoice agreement for Procurement

welcome to act notes tutorials my name is shelly and i am going to give you a quick tutorial on a blanket purchase agreement or what we call a bpa a blanket purchase agreement is a simplified method of filling anticipated repetitive needs for supplies or services by establishing charge accounts with qualified contractors bpas should be established for use by an organization responsible for providing supplies for its own operations or for other offices installations projects or functions the use of bpas does not exempt an agency from the responsibility for keeping obligations and expenditures within available funds and executed in ance with federal acquisition regulation what is the purpose of a blanket purchase agreement the purpose of a bpa is to reduce administrative costs in accomplishing small purchases by eliminating the need to write a separate contract each time when the government knows they will be buying the same service or part multiple times over and over again it's easier to issue a bpa than write a new contract each time the following are circumstances under which contracting professionals may establish bpas there are a wide variety of items in a broad class of supplies or services that are generally purchased but the exact items quantities and delivery requirements are not known in advance and may vary considerably there is a need to provide commercial sources of supply for one or more offices or projects in a given area that do not have or need authority to purchase otherwise and finally the use of this procedure would avoid the writing of numerous purchase orders what are the benefits of a blanket purchase agreement bpas offer an excellent option for federal agencies and schedule contractors alike providing convenience efficiency and reduced costs contractual terms and conditions are contained in the contract and are not to be renegotiated bpas also provide opportunities to negotiate improved discounts satisfy recurring requirements reduce administrative costs by eliminating repetitive acquisition efforts allow ordering activities to leverage buying power through volume purchasing enable ordering activities by streamlined ordering procedures allow ordering activities to incorporate contractor team arrangements reduce procurement lead time and finally allow the ability to incorporate terms and conditions not in conflict with the underlying contract thank you for watching this tutorial on the blanket purchase agreement please visit the webpage for more information congratulations for finishing this tutorial and thanks for visiting act notes