FAR 47.205—Availability of term contracts and basic ordering agreements for transportation or for transportation-related services.
Plain-English Summary
FAR 47.205 explains when agencies may use term contracts and basic ordering agreements (BOAs) for transportation and transportation-related services, and when they may instead buy these services directly. It covers the general authority for all Government agencies to contract for transportation services and establish BOAs, the preference for using term contracts and BOAs already executed by agencies with transportation contracting expertise, the role of the Department of Defense (DoD) and the General Services Administration (GSA) in contracting on behalf of other agencies, examples of services GSA commonly covers such as local drayage, office moves, and ocean-freight forwarding, and the fallback rule allowing agencies to acquire transportation-related services at or below the simplified acquisition threshold when term contracts or BOAs are not available. In practice, this section is about efficiency, specialization, and avoiding duplicative contracting efforts by steering agencies toward existing transportation contracting vehicles where possible. It also signals that transportation procurement is a specialized area where experienced contracting offices can achieve better pricing, service, and administrative control. For contractors, this section matters because it affects how transportation work is competed, ordered, and administered across agencies. For contracting officers, it clarifies when to rely on existing term contracts or BOAs and when direct acquisition is permissible.
Key Rules
All agencies may contract
Any Government agency may contract for transportation or transportation-related services and may establish BOAs unless its own agency regulations say otherwise. This gives agencies broad authority, but that authority can be limited by internal rules.
Use experienced contracting offices
The FAR states that it is generally more economical and efficient to use term contracts and BOAs already executed by agencies with transportation expertise. The practical preference is to rely on specialized contracting activity rather than recreate the arrangement elsewhere.
DoD and GSA may act for others
DoD and GSA contract for transportation and transportation-related services on behalf of other activities and agencies. This means other agencies may benefit from vehicles established by these organizations instead of setting up their own.
Examples of covered services
GSA may award term contracts for services such as local drayage, office moves, and ocean-freight forwarding. These examples show the kinds of transportation-related services that may be placed under term contracts or BOAs.
Direct buy if below threshold
If term contracts or BOAs are not available, agencies may obtain transportation or transportation-related services costing no more than the simplified acquisition threshold. This is a fallback authority, not the preferred method when existing vehicles are available.
Agency regulations may restrict use
Although the FAR grants general authority, agency-specific regulations may prescribe otherwise. Contracting personnel must check internal policy before assuming they can create or use a BOA or term contract.
Responsibilities
Contracting Officers
Determine whether transportation or transportation-related services should be acquired through an existing term contract or BOA, especially one established by a specialized transportation contracting office. Verify whether agency regulations impose any restrictions and use direct acquisition only when no term contract or BOA is available and the value is at or below the simplified acquisition threshold.
Agencies
Follow their own regulations governing transportation contracting authority, and use existing specialized contracting vehicles when economical and efficient. Agencies should coordinate with DoD, GSA, or other experienced contracting activities when appropriate.
DoD
Contract for transportation and transportation-related services on behalf of other activities and agencies when appropriate, leveraging its transportation contracting expertise and existing contracting mechanisms.
GSA
Contract for transportation and transportation-related services on behalf of other activities and agencies, including awarding term contracts for services such as local drayage, office moves, and ocean-freight forwarding.
Contractors
Understand that transportation-related work may be ordered through term contracts or BOAs established by specialized agencies, and be prepared to compete for or perform under those vehicles rather than expecting each agency to procure independently.
Practical Implications
This section encourages agencies to centralize transportation buying through experienced offices, which can improve pricing, reduce administrative burden, and increase consistency.
A common pitfall is assuming every agency can freely set up or use a BOA without checking agency-specific regulations or whether an existing term contract already covers the need.
Another risk is bypassing available specialized vehicles and making a direct purchase when a term contract or BOA exists, which can create compliance and efficiency problems.
The simplified acquisition threshold fallback is narrow: it applies only when term contracts or BOAs are not available, so contracting officers should document that unavailability before using direct acquisition.
Contractors should watch for opportunities under GSA or DoD transportation vehicles, since those may be the primary path for recurring transportation-related requirements across multiple agencies.
Official Regulatory Text
(a) All Government agencies may contract for transportation or for transportation-related services and execute basic ordering agreements (BOA’s) (see subpart 16.7 ) unless agency regulations prescribe otherwise. However, it is generally more economical and efficient for most agencies to make use of term contracts and basic ordering agreements that have been executed by agencies that employ personnel experienced in contracting for transportation or for transportation-related services. The Department of Defense (DoD) and the General Services Administration (GSA) contract for transportation or for transportation-related services on behalf of other activities and agencies. For instance, GSA awards term contracts for services such as local drayage, office moves, and ocean-freight forwarding (see 47.105 for assistance). (b) Agencies may obtain transportation or transportation-related services for which the cost does not exceed the simplified acquisition threshold if term contracts or basic ordering agreements are not available.