Overview
A Basic Ordering Agreement (BOA) is a written instrument of understanding—not a contract—that pre-negotiates terms, clauses, and pricing methods to expedite the future procurement of uncertain supplies or services. It is used when a substantial number of requirements are anticipated but specific quantities and prices are not yet known.
Key Rules
- Legal Status: A BOA is not a contract and does not obligate the government to place any orders, nor may it be used to restrict competition.
- Mandatory Content: Each agreement must describe pricing methods, delivery terms, authorized ordering activities, and the specific point at which an order becomes a binding contract.
- Maintenance and Revision: BOAs must be reviewed annually and updated to conform to current regulations; modifications to the BOA do not retroactively affect previously issued orders.
- Competition Requirements: Contracting officers must still obtain competition in accordance with FAR Part 6 and comply with synopsis requirements for each individual order issued under the BOA.
- Pricing Limitations: Work generally cannot begin until prices are established, unless the order includes a ceiling price and there is an urgent need or the BOA provides specific procedures for timely pricing.
- Disputes: If an order is issued before pricing is established and the parties fail to agree on a price, the disagreement is handled under the Disputes clause included in the BOA.
Practical Implications
- BOAs reduce administrative lead time and inventory investment by allowing the government to react quickly to recurring needs without the overhead of negotiating a new master agreement for every purchase.
- Because a BOA is not a contract, contracting officers must treat each order as an independent procurement, ensuring all necessary justifications, approvals, and competitive requirements are met at the order level.