SPS Spotlight Series February 2015 Understanding Agreements Among the several ways to accomplish Contracting purchasing goals are Agreements and Agreement OrdersContracts Agreements and Agreement OrdersContracts differ from Indefinite Delivery Contracts and their Delivery Orders ID: 808826
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Slide1
Understanding Agreements
SPS Spotlight Series
February 2015
Slide2Understanding Agreements
Among the several ways to accomplish Contracting purchasing goals are Agreements and Agreement Orders/Contracts.
Agreements and Agreement Orders/Contracts differ from Indefinite Delivery Contracts and their Delivery Orders.
Agreements themselves are not a contract of any kind and are not considered binding on either party.
Slide3Understanding Agreements
Why use an Agreement?
Slide4Understanding Agreements
Clauses may be added to them
The creating agency or the contractor can “discontinue” the agreement with a 30 day notice
Agreements from other agencies may be used
No funding or obligations in the Agreement
Pricing or quantity need not be readily available
Slide5Understanding Agreements
In PD
2
, there are basically four areas concerning Agreements and their orders:
The Basic Agreement
The Basic Ordering Agreement (BOA)
The Master agreement for repair and alteration of vessels (MARAV)
The Blanket Purchase Agreement (BPA)
Slide6Understanding Agreements
What exactly are Agreements?
Slide7Understanding Agreements
Basic Agreement (See FAR 16.702)
A written instrument of understanding, negotiated between an agency or contracting activity and a contractor
Contains contract clauses applying to future contracts between the parties
Contemplates separate future contracts that will incorporate said clauses by reference or attachment
Use a Basic Agreement when a substantial number of separate contracts may be awarded to a contractor during a particular period
A Basic Agreement itself is not a contract
Slide8Understanding Agreements
Basic Ordering Agreement (See FAR 16.703)
A written instrument of understanding, negotiated between an agency or contracting activity and a contractor
Contains terms and contract clauses applying to future contracts (orders) between the parties
Contains a description, as specific as practicable, of supplies or services to be provided to include the method of pricing
Use a Basic Ordering Agreement when there are uncertain requirements for supplies or services when specific items, quantities, and prices are not known at the time the agreement is executed
A Basic Ordering Agreement itself is not a contract
Slide9Understanding Agreements
Master Agreement for repair and alteration of vessels (MARAV) (See DFARS 217.7101)
A written instrument of understanding, negotiated between a contracting activity and a contractor
Contains contract clauses applying to future contracts between the parties pertaining to repairs, alterations, and/or additions to vessels
Contemplates separate future contracts that will incorporate said clauses by reference or attachment
A MARAV itself is not a contract
Slide10Understanding Agreements
Blanket Purchase Agreement (BPA) (See FAR 13.303)
A simplified method of filling anticipated repetitive needs for supplies or services by establishing “charge accounts” with qualified sources of supply
The use of BPAs does not exempt an agency from the responsibility for keeping obligations and expenditures within available funds
A Blanket Purchase Agreement itself is not a contract
Slide11Understanding Agreements
Let’s take a look at the creation of Agreements
Slide12Understanding
Agreements
We have decided to use the Basic Ordering Agreement (BOA). Go to the menu Procurement → Pre-Award/Award → Agreements and then select either SF 26 or SF 1449. Finally select the Basic Ordering Agreement option.
Slide13Understanding
Agreements
The Create New BOA (SF 1449) window displays. Notice that position 9 of the Procurement Instrument Identification Number (PIIN) is a “G”. Now click the “OK” button.
Slide14Understanding
Agreements
The actual SF 1449 for this BOA displays. Fill in the various blocks per your agency’s requirements. Now click on Tab Items 17-26.
Slide15Understanding
Agreements
On this tab, the decision to add line items is made using the line items menu. In our case we opt not to add line items. Now click on the Document Options menu.
Slide16Understanding
Agreements
Various other information pertaining to Agreements must be entered. Do this by clicking on the Agreement Information menu.
Slide17Understanding
Agreements
The Agreement Information window displays. Make sure to fill in all of the information pertaining to this Agreement. This information is MANDATORY! Next click OK.
Slide18Understanding Agreements
Once again click the Document Options menu and then select Classification.
Slide19Understanding
Agreements
At the bottom of the screen, fill in needed Vendor Information. This information is MANDATORY. Now click the OK button.
Slide20Understanding
Agreements
Now click the Clauses tab. Here notice that Agreements have by default a “Preamble”. Double click the Preamble line to read it.
Slide21Understanding
Agreements
The Preamble is basically a “Fill In Clause” in which information must be entered. Do not delete the fill in fields. Type within them. Now save and close the BOA.
Slide22Understanding
Agreements
The icon for the Agreement will be shown. It must be Generated, Approved, and then Released.
Slide23Understanding
Agreements
Click on the “Utilities” menu, and then click the “Preferences…” menu.
Slide24Understanding
Agreements
Click the “Notification” tab. Here you may select pertinent information for system generated alerts.
Slide25Understanding
Agreements
We will not create the “Basic Agreement” or the “MARAV” because the procedure is exactly the same as the creation of the BOA. Once created however, position 9 of the PIIN will have an “H” instead of a “G”.
N00025-15-H-0001
Slide26Understanding Agreements
As mentioned before, the creation of the “Basic Agreement” and the “MARAV” are the same as for the “BOA”.
Both the Basic Agreement and
the MARAV will have an “H” in the 9
th
position of the PIIN.
Now we will turn our attention to the creation of the orders for these agreements. We will begin with the BOA.
Slide27Understanding
Agreements
Purchases against a “BOA” are called “orders”. Begin by highlighting the applicable BOA.
Slide28Understanding
Agreements
Go to the menu Procurement →
Post-Award
→
Agreement Orders/Contracts
, and then select the appropriate form.
Slide29Understanding
Agreements
The Create New Agreement Order/Contract (SF 1449) window displays. Notice that an order number is produced similar to that of an Indefinite Delivery Contract. Note: No PR is necessary to produce this number. Now click the OK button.
Slide30Understanding
Agreements
The “Agreement CLIN Selector” window displays. What is done here to create the order depends on how the Agreement CLIN structure was setup.
Slide31Understanding
Agreements
If CLINs were added initially to the Agreement, they will display under Agreement Line Items. They may be used to create the Agreement Order.
Slide32Understanding
Agreements
If the CLINs to be used in the order are to be taken from one or more PRs, click the “Attach” button to retrieve them.
Slide33Understanding
Agreements
The “Attachment Selection” window displays. Search for and select the PR from which the line items are to be taken.
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Agreements
The PR and the line items in the PR will display on the “Requirements Line Items” side.
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Agreements
To select an item from either the Agreement Line Items side or the Requirements Line Items side, simply highlight it and click the “Select” button.
Slide36Understanding
Agreements
The selected line item(s) will appear in the “Order/Contract Line Items:” window. After all line items have been selected, click the “OK” button.
Slide37Understanding
Agreements
The order form previously selected will now display. Fill in the various blocks per your agency’s requirements. Click on the “Items 17-26” tab.
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Agreements
Here, open the line item and enter the correct unit price. Then save and close the document.
Slide39Understanding
Agreements
The Agreement Order icon will appear in the folder on the desktop. Follow agency procedures for the creation of a CAR; then, Generate, Approve, and Release the order.
Slide40Understanding Agreements
When creating a Basic Agreement or a MARAV, the procedure is the same, but the order will look different.
The order placed against a Basic Agreement or MARAV is called a “contract” instead of an order.
Begin by highlighting the Basic Agreement or MARAV.
Slide41Understanding
Agreements
Go to the menu Procurement →
Post-Award
→
Agreement Orders/Contracts
, and then select the appropriate form.
Slide42Understanding
Agreements
This time the Create New Agreement Order/Contract (SF 1449) window shows with a “C” in the 9
th
position of the PIIN. If the user wishes this to be a purchase order, simply change the “C” to a “P”. Now click the OK button.
Slide43Understanding Agreements
Follow the same procedures that were used from slides 30 to 38. When the contract is done, it will look like this, depending on which letter was chosen in position 9 of the PIIN. Notice that there is no supplemental number
ie
. 0001 as in a BOA.
Slide44Understanding Agreements
The final Agreement type is the Blanket Purchase Agreement. (BPA)
There have been many changes to the entire structure of the BPA, its orders, and the modifications thereto in SR15.
An order against a BPA is known as a “Call” and is created differently from the other Agreement orders.
We will look at the creation of a BPA, the creation of a Call, and a modification to the Call.
Slide45Understanding
Agreements
Begin by going to the menu Procurement→ Pre-Award/Award→ Agreements→ and finally BPA Master Agreement.
Slide46Understanding
Agreements
The Create New Blanket Purchase Master Agreement window displays. Notice that the 9
th
position of the PIIN is an “A”. Click the OK button.
Slide47Understanding
Agreements
Fill in the various blocks per your agency’s requirements. Click on the BPA Items tab.
Slide48Understanding
Agreements
Once again fill in the various areas per your agency’s requirements. Notice that there is now an area for a GSA Schedule number. If a GSA Schedule is being used, click the drop down arrow to select the number or, click the “Add” button to add a new schedule number.
Slide49Understanding
Agreements
Once you save and close the document, there will be a BPA Master Agreement icon created on the desktop. Then it is just a matter of Generating, Approving, and Releasing the BPA Master.
Slide50Understanding
Agreements
To create a “Call” against the Master BPA, begin by highlighting the Released BPA Master document.
Slide51Understanding
Agreements
Go to the menu Procurement→ Post-Award→ BPA Call→ and select either the DD Form 1155 or the SF 1449. We chose the SF 1449.
Slide52Understanding
Agreements
The Create New BPA Call (SF 1449) window displays. Notice that the BPA call number is similar to that of the BOA order number. Now click the OK button.
Slide53Understanding Agreements
Fill in the various blocks on tabs Items 1-16 per your agency’s requirements. Now click on tab Items 17-26.
Slide54Understanding Agreements
Go to the Line Items menu and select “Attach” to select a PR and line item(s) to use in this BPA Call.
Slide55Understanding
Agreements
The “Attachment Selection” window displays. Search for and select the PR from which the line item(s) are to be taken.
Slide56Understanding Agreements
Double click the line item and enter the unit price. Once done, go to Clauses tab.
Slide57Understanding Agreements
In SR15, the BPA Call is an actual form, so clauses may be added if necessary. Now save and close the BPA Call.
Slide58Understanding Agreements
There will now be a BPA Call icon on the desktop. From here simply Generate, Approve, and Release the BPA Call.
Slide59Understanding
Agreements
Since the BPA Call form is either an SF 1449 or a DD 1155, a normal modification to these forms may be done.
These modifications will use the regular SF 30 and the same rules apply as if it were a modification to an Indefinite Delivery Contract Delivery Order.
Accomplish the Mod in the exact same way as any other modification.
Slide60Questions?
Slide61Q&A
I was told today from CACI that a script could be written to close out agreements.
While this is not recommended, it may be possible to request a custom script. This would be out of the scope of the SPS Help Desk and may be supported by the Component Service Team.
Will SR15 permit modifications to “Calls”, after the expiration date of the master agreement?
An SPS Help Desk analyst tested this and found
that
modifications to existing Calls are
possible
after the expiration of the master agreement. Users will not be able to create new Calls once the master agreement expiration date has passed.
We
know Agreements do not need to be closed out… why?
Closeout is for contracts. Agreements are NOT contracts.
Slide62Q&A
Will any BPA created in SR14 be able to use the SR15 features?
Yes, they will. This is concerning NEW Calls, not previously written ones.
I am assuming that external BPA Masters work the same as in previous versions?
Yes, they do.
If you write a BPA that allows for orders of
micropurchases
placed via the GPC, is there a way we can capture order information in FPDS-NG?
This question is beyond the scope of this training. Please see your activity for information about procedure.
Slide63Q&A
How do you discontinue an Agreement in PD2? Is that a new feature in SR15?
It is not a new feature. You simply go to the menu Procurement → Post Award → Agreement Discontinuation → Discontinue.
When Calls are placed in SR15 against existing BPAs created in SR14, will you have the option for the DD1155 or the SF1449, or will you still be stuck with the old Call form?
You will be under the new SR15 rules so you WILL have the choice.