8.405-3  Blanket purchase agreements (BPAs).

4.  Amend section 8.405-3 by revising paragraphs (b)(2)(ii) and (c)(3) to read as follows:

8.405-3  Blanket purchase agreements (BPAs).

* * * * *

(b) * * *

(2) * * *

(ii)  Type-of-order preference. The ordering activity shall specify the order type (i.e., firm-fixed price, time-and-materials, or labor-hour) for the services identified in the statement of work. The contracting officer should establish firm-fixed priced orders to the maximum extent practicable. For time-and-materials and labor-hour orders, the contracting officer shall follow the procedures at 8.404(h).

* * * * *

(c) * * *

(3)  BPAs for hourly-rate services. If the BPA is for hourly-rate services, the ordering activity shall develop a statement of work for each order covered by the BPA. Ordering activities should place these orders on a firm-fixed price basis to the maximum extent practicable. For time-and-materials and labor-hour orders, the contracting officer shall follow the procedures at 8.404(h). All orders under the BPA shall specify a price for the performance of the tasks identified in the statement of work.

* * * * *