A.  Summary of Significant Changes

FAR 8.405-3(a)(7)(v) was modified to correct an inadvertent error regarding the threshold amount. The amount should have read $103 million in the interim rule. The amount has been corrected to read $103 million in the final rule to reflect inflation.

FAR 8.405-3(c)(3) has been revised to add at the end of paragraph (3) "The ordering activity is responsible for considering the level of effort and the mix of labor proposed to perform a specific task being ordered, and for determining that the total price is reasonable through appropriate analysis techniques, and documenting the file accordingly." This was added to ensure the price of an order requiring a statement of work is being evaluated when placed under a BPA with hourly rate services. This language is also consistent with the evaluation of orders requiring a statement of work in FAR 8.405-2(d).

FAR 8.405-3(e) has been revised to remove paragraph (3), "If a single-award BPA is established, the ordering activity contracting officer's annual determination must be approved by the ordering activity's competition advocate prior to the exercise of an option to extend the term of the BPA." This was determined to be too stringent a requirement for the exercise of an option, which is generally within a contracting officer's authority.