FAR 16.701—Scope.
Plain-English Summary
FAR 16.701 is a scope provision that tells readers what this subpart is about: the policies and procedures for establishing and using basic agreements and basic ordering agreements (BOAs). It also points readers to related authorities for blanket purchase agreements (BPAs) under FAR 13.303 and for additional coverage of basic agreements with educational institutions and nonprofit organizations under FAR 35.015(b). In practical terms, this section does not itself create detailed operating rules; instead, it defines the regulatory boundary for the subpart and signals where related, more specific guidance lives. For contracting officers and contractors, the significance is that these instruments are specialized ordering frameworks, not standalone contracts for supplies or services, and they must be used only within the limits of the applicable FAR provisions. Understanding this scope helps avoid misclassifying an agreement, using the wrong acquisition vehicle, or overlooking other FAR requirements that apply to BPAs or to agreements with certain organizations.
Key Rules
Subpart covers basic agreements
This subpart prescribes the policies and procedures for establishing and using basic agreements. A basic agreement is a written instrument that sets out terms and conditions for future contracts but does not itself obligate funds or require the Government to place orders.
Subpart covers BOAs
This subpart also governs basic ordering agreements, which are arrangements that establish terms for future orders but do not create a binding contract until an order is placed and accepted under the agreement’s terms.
BPAs are covered elsewhere
Blanket purchase agreements are not governed by this scope section; FAR 13.303 provides the controlling rules for BPAs. Users should not assume BPA procedures are interchangeable with basic agreements or BOAs.
Special coverage for certain institutions
FAR 35.015(b) provides additional coverage for basic agreements with educational institutions and nonprofit organizations. When those entities are involved, the more specific guidance must be consulted in addition to this subpart.
Scope is limited to this subpart
This section is a scope statement, so it identifies what the subpart addresses and where related guidance is found. It does not by itself authorize every possible use of these instruments or replace the detailed requirements in other FAR parts.
Responsibilities
Contracting Officer
Determine whether a basic agreement or BOA is the appropriate instrument, apply the policies and procedures in this subpart, and consult FAR 13.303 or FAR 35.015(b) when the acquisition involves BPAs or educational institutions/nonprofit organizations.
Agency
Ensure acquisition personnel understand the distinction among basic agreements, BOAs, and BPAs, and use the correct FAR authority when establishing ordering arrangements.
Contractor
Recognize that these instruments establish terms for future ordering rather than immediate contract performance, and review the applicable agreement and related FAR provisions before relying on them for work or pricing expectations.
Practical Implications
This section is mainly a roadmap: it tells users where to find the rules for basic agreements and BOAs, and where to look for BPAs and certain special-purpose agreements.
A common pitfall is treating a basic agreement or BOA like a contract that automatically guarantees work or funding; it usually does not.
Another frequent mistake is using BPA procedures when the acquisition is actually being handled under the basic agreement/BOA framework, or vice versa.
When educational institutions or nonprofit organizations are involved, contracting personnel should check FAR 35.015(b) rather than relying only on this subpart.
Because this is a scope provision, users should read it together with the operative sections that actually establish formation, use, and ordering rules.
Official Regulatory Text
This subpart prescribes policies and procedures for establishing and using basic agreements and basic ordering agreements. (See 13.303 for blanket purchase agreements (BPA’s) and see 35.015 (b) for additional coverage of basic agreements with educational institutions and nonprofit organizations.)