Purchase Agreements

1. Purchase Agreements

2. Purchase Agreements Definition (Adapted from FAR Part 13): A Purchase Agreement (PA) is a simplified method of filling anticipated repetitive needs for a set of supplies, materials or services. Purchase Agreements under SEWP can be utilized when a known and specific set of products and/or product services will be purchased over a set time period but the exact timing of those purchases is unknown.

3. Wrong Reasons to Establish a Purchase Agreement • Purchase agreements under SEWP should not be used: • To provide for single source, long-term ordering relationships • To establish open-ended sub-contracts

4. Purchase Agreements Methodology : • A purchase agreement is established by obtaining quotes for a list of IT products and/or product related services using the SEWP Quote Request tool, providing Fair Opportunity to one or more Contract Groups, awarding to one or more Contract Holders, placing calls (orders) based on the selected quote(s) for the time period determined in the Request for Quote and initial Delivery Order.

5. Establishment of PAs • Single vs. Multiple Awards • Either is allowed, however the preference is for multiple awards • If Multiple Award, calls should be rotated frequently • If Single Award, Period of Performance should be limited (highly recommended that single award agreements are limited to one year or less) • Maintain Original Purchase Agreement Scope Throughout

6. Preparation of PAs It is recommended that FAR part 13.303-3 be used as a template for the preparation of PA’s under SEWP: • (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 PA.

7. Preparation of PAs (con’t) • (3) Purchase limitation. A statement that specifies the dollar limitation for each individual purchase under the PA. • (4) Individuals authorized to purchase under the PA. A statement that a list of individuals authorized to purchase under the PA, 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.

8. Preparation of PAs (con’t) • (5) Delivery tickets. [PA Calls] A requirement that all shipments under the agreement shall be accompanied by delivery tickets or sales slips that shall contain the following minimum information:

9. Preparation of PAs (con’t) • (i) Name of supplier. • (ii) PA 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…… • (vii) Date of delivery or shipment. • (6) Invoices. ……

10. Integrity of the Process • Fair Opportunity must be maintained • The requirements of FAR 16.505 must be maintained whether a PA is being created or a stand-alone Delivery Order. • 4 Competed Groups Group A: OEMs and Value Added Resellers(VARs) Group B: SDVOSB Set-Asides (VARs) Group C: Small Business Set-Asides (VARs) Group D: Non-Set-Aside (VARs) • Must be a defined requirement within the scope of the SEWP Contract. • Must contain a defined Period of Performance.