FAR 13.303-3—Preparation of BPAs.
Plain-English Summary
FAR 13.303-3 explains how to prepare purchase order or blanket purchase agreements (BPAs) under simplified acquisition procedures. It covers the required form for the BPA, the prohibition on citing accounting and appropriation data on the BPA itself, and the mandatory terms and conditions that must be included. Those terms address the description of the agreement, the Government’s limited obligation, purchase limits, who may place calls or orders, delivery ticket requirements, and invoice/billing procedures. It also points to the special requirements that apply when fast payment procedures are used. In practice, this section is the drafting checklist for a valid BPA: it ensures the supplier knows what may be ordered, who may order, how much may be ordered, how deliveries must be documented, and how invoices will be handled. For contracting officers and contractors, the section matters because missing or unclear BPA terms can create payment delays, disputes over authority, or orders that exceed the BPA’s intended scope.
Key Rules
Use prescribed BPA forms
BPAs must be prepared on the forms specified in FAR 13.307. The BPA should not cite accounting and appropriation data on the agreement itself; that information is handled separately under the cited rule.
State the agreement’s purpose
The BPA must say that the supplier will furnish supplies or services, described in general terms, when requested by the contracting officer or authorized representative during a specified period and, if applicable, within a stated aggregate amount.
Limit Government obligation
The BPA must clearly state that the Government is obligated only to the extent of authorized purchases actually made under the BPA. A BPA is not a commitment to buy a minimum quantity unless the document says otherwise.
Set per-purchase dollar limits
Each BPA must specify the dollar limitation for each individual purchase. This cap controls what can be ordered on a single call or order under the agreement.
Identify authorized purchasers
The BPA must state that the contracting officer will furnish the supplier a list of individuals authorized to place purchases under the BPA. Those individuals may be identified by title or by name, organizational component, and the dollar limit for each authorized person or position.
Require delivery tickets or sales slips
Except for newspapers, magazines, and other periodicals, shipments under the BPA must be accompanied by delivery tickets or sales slips containing minimum information: supplier name, BPA number, purchase date, purchase number, itemized supplies or services, quantity, unit price and extension with discounts, and delivery or shipment date.
Use proper invoice language
The BPA must include one of the required invoice clauses. The clause used depends on whether summary invoices, itemized invoices, or individual invoices are expected, and periodical subscriptions have a special invoice statement requirement.
Apply fast payment terms when used
If fast payment procedures are used, the BPA must include the requirements in FAR 13.403. Those requirements are additional and must be incorporated when the fast payment method is selected.
Responsibilities
Contracting Officer
Prepare the BPA on the required form, omit accounting and appropriation data from the BPA, include all mandatory terms and conditions, set purchase limits, identify authorized purchasers, and provide the supplier the list of authorized individuals and their limits. The contracting officer must also ensure the correct invoice and delivery-ticket language is included and add fast payment requirements when applicable.
Authorized Representative of the Contracting Officer
Place orders only within the authority granted under the BPA and within the stated dollar limits and other restrictions. This person must follow the BPA terms exactly as written and as communicated by the contracting officer.
Supplier
Furnish supplies or services when properly requested under the BPA, issue delivery tickets or sales slips with the required information for covered shipments, and submit invoices in the format and timing required by the BPA. The supplier must also honor the BPA’s limits and authorized-purchaser restrictions.
Agency/Ordering Activity
Maintain control over who is authorized to buy under the BPA, ensure internal users understand their dollar limits and ordering authority, and support compliance with the BPA’s documentation and payment procedures.
Practical Implications
A BPA is only as strong as its written terms; if the agreement does not clearly state authority, limits, and billing rules, disputes and payment delays are likely.
The per-purchase dollar limit is a hard control point. Orders above that limit can be unauthorized and may require a different procurement action.
Authorized purchaser lists matter operationally. If a person is not on the list or exceeds their assigned limit, the supplier may not be protected in accepting the order.
Delivery tickets and invoices must match the BPA’s billing method. Mismatches between summary invoices, itemized invoices, and receipt documentation are a common source of rejected payments.
If fast payment is used, the BPA must be drafted with that procedure in mind from the start; otherwise the payment process may not work as intended.
Official Regulatory Text
Prepare BPAs on the forms specified in 13.307 . Do not cite accounting and appropriation data (see 13.303-5 (e)(4)). (a) The following terms and conditions are mandatory: (1) Description of agreement. A statement that the supplier shall furnish supplies or services, described in general terms, if and when requested by the contracting officer (or the authorized representative of the contracting officer) during a specified period and within a stipulated aggregate amount, if any. (2) Extent of obligation. A statement that the Government is obligated only to the extent of authorized purchases actually made under the BPA. (3) Purchase limitation. A statement that specifies the dollar limitation for each individual purchase under the BPA (see 13.303-5 (b)). (4) Individuals authorized to purchase under the BPA. A statement that a list of individuals authorized to purchase under the BPA, identified either by title of position or by name of individual, organizational component, and the dollar limitation per purchase for each position title or individual shall be furnished to the supplier by the contracting officer. (5) Delivery tickets. A requirement that all shipments under the agreement, except those for newspapers, magazines, or other periodicals, shall be accompanied by delivery tickets or sales slips that shall contain the following minimum information: (i) Name of supplier. (ii) BPA number. (iii) Date of purchase. (iv) Purchase number. (v) Itemized list of supplies or services furnished. (vi) Quantity, unit price, and extension of each item, less applicable discounts (unit prices and extensions need not be shown when incompatible with the use of automated systems, provided that the invoice is itemized to show this information). (vii) Date of delivery or shipment. (6) Invoices. One of the following statements shall be included (except that the statement in paragraph (a)(6)(iii) of this subsection should not be used if the accumulation of the individual invoices by the Government materially increases the administrative costs of this purchase method): (i) A summary invoice shall be submitted at least monthly or upon expiration of this BPA, whichever occurs first, for all deliveries made during a billing period, identifying the delivery tickets covered therein, stating their total dollar value, and supported by receipt copies of the delivery tickets. (ii) An itemized invoice shall be submitted at least monthly or upon expiration of this BPA, whichever occurs first, for all deliveries made during a billing period and for which payment has not been received. These invoices need not be supported by copies of delivery tickets. (iii) When billing procedures provide for an individual invoice for each delivery, these invoices shall be accumulated, provided that- (A) A consolidated payment will be made for each specified period; and (B) The period of any discounts will commence on the final date of the billing period or on the date of receipt of invoices for all deliveries accepted during the billing period, whichever is later. (iv) An invoice for subscriptions or other charges for newspapers, magazines, or other periodicals shall show the starting and ending dates and shall state either that ordered subscriptions have been placed in effect or will be placed in effect upon receipt of payment. (b) If the fast payment procedure is used, include the requirements stated in 13.403 .