|
|
An agreement that may be used between the Postal Service and a supplier that is not a contract is an ordering agreement. It is a negotiated written agreement that contains terms and conditions applying to future contracts between the parties. A contract comes into being between the parties to an ordering agreement only when orders are issued and accepted by the parties. Ordering agreements include basic pricing agreements (BPAs), which are ordering agreements that permit individuals designated by name or title to place orders by telephone, over the counter, or in writing. Although there may be a price ceiling for individual orders, there is no limit on the aggregate value of orders and no commitment to purchase.
An ordering agreement is useful for expediting contracting for uncertain requirements of supplies or services when specific quantities and prices are not known at the time the agreement is signed, but substantial quantities of the supplies or services are expected to be purchased. Ordering agreements reduce administrative lead time and inventory investment. Ordering agreements typically apply to contracts for services.
Task orders are principally placed against an ordering agreement. It is the responsibility of the CO to issue the task order; the client will issue task descriptions, as its needs arise; and the supplier will estimate the cost, based on the labor rates and other applicable costs that are established in the ordering agreement. The CO may accept the estimate of costs and schedule or negotiate with the supplier to reach agreement.
|
|
