Basic Ordering Agreement(BOA)
A written instrument containing terms and clauses for future purchases that does not obligate the government until specific orders are issued.
Overview
A Basic Ordering Agreement (BOA) is a pre-negotiated arrangement between a contracting agency and a contractor that establishes terms, conditions, and pricing methods for future orders. Unlike a contract, a BOA itself does not obligate funds or commit the government to any purchases. It streamlines procurement by eliminating the need to negotiate standard terms each time an order is placed.
Why It Matters in GovCon
BOAs reduce procurement lead times and administrative burden for both agencies and contractors. Contractors with BOAs in place are positioned to receive orders quickly when requirements arise, providing a competitive advantage especially for spare parts, maintenance services, and technical support where rapid response is valued.
Key Details
- Not a Contract: A BOA is an agreement, not a contract. No funds are obligated until individual orders are issued against it.
- Terms and Conditions: Contains negotiated clauses, delivery terms, inspection criteria, and pricing arrangements applicable to future orders.
- FAR Reference: Governed by FAR 16.703, which outlines requirements for establishing and using BOAs.
- Orders: Each order placed under a BOA is a separate contract action with its own funding and delivery requirements.
- Common Uses: Frequently used for spare parts, repair services, and recurring supply needs.
Related Terms
- Blanket Purchase Agreement (BPA)
- Indefinite Delivery/Indefinite Quantity (IDIQ)
- Task Order
- Federal Acquisition Regulation (FAR)
More Contracts Terms
A simplified method of filling anticipated repetitive needs for supplies or services by establishing charge accounts with qualified vendors.
A numbered item in a contract that identifies a specific deliverable, service, or unit of work along with its quantity and price.
A contract type where the government reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit.
An order placed against an existing contract for the delivery of supplies or materials.
A contract type where the price is set at award and does not change regardless of the contractor's actual costs, placing maximum risk on the contractor.
Long-term government-wide contracts with commercial firms that provide federal agencies access to products and services at pre-negotiated prices.
Ready to Win More Contracts?
Use GovCon Data to find opportunities matched to your business and generate winning proposals with AI.