The U.S. Federal Acquisition Regulation uses the term “Blanket Purchase Agreements” or BPAs.  If you know that many of your products will be purchased this year, you can plan your production accordingly. To put it this way, it also simplifies your collaboration with subcontractors and allows you to optimize your supply chains. (A) The ordering activity must provide any multiple BPA premium holder with a fair opportunity to consider for any order exceeding the small acquisition threshold, but not to exceed the simplified acquisition threshold, unless one of the exceptions at point 8.405-6 (a) (1) (1) the most difficult part of a contract is determining the amount of planning ordered by the user. As the amount of planning can be difficult to achieve, the supplier needs to know how much to keep in stock. An easy way to do this is to chat with the buyer, how much to keep in stock. For example, for the first 6 months, they can only keep 20% in stock, allowing the supplier and buyer to check and adjust the quantity accordingly. This reduces the supplier`s storage load for the duration of the contract and can help the buyer at the end of the contract if the action does not move as fast as expected. The contract can be renewed year after year, but can be adjusted each time, as the most relevant forecasting history provides for the need to reduce or increase inventory requirements. Another solution is to allow some companies to use the information provided by a materials needs planning system to determine appropriate stock quantities throughout the product lifecycle. One of the main differences between BPAs and Schedule BPAs is that these global framework contracts are subject to the simplified acquisition threshold.
In other words, no agency can use “traditional” BPAs to purchase products or services beyond the SAT limit. However, if the BPA is fixed on a scheduled contract, the SAT will no longer be a problem. Of course, all other benefits of pursuing GSA calendars also apply to Schedule BPAs. With less administrative burden and minimal paper load associated with ordering multiple orders, you can count on faster rotation and constant cash flow.