Contracting Basics: Contracting Instruments and Terminology Updated: Jan. 8, 2024
 **Purpose:** This page describes common contracting vehicles (i.e., instruments) and terminology used by DLA and may not be all-inclusive.  Vendor Assistance If a Vendor needs help with a specific contract awarded by DLA Aviation, the Vendor should submit a Post Award Request in DIBBS.
 Jump to: Awards and Contracting with the Government
 Contracts and Delivery Orders
 Basic Ordering Agreements
 Purchase Orders
 Other Types of Awards **See all articles part of Contract Basics Collection** **Terms Glossary**  Awards and Contracting with the Government Contracting with the Government is a structured process for Vendors to do business with DLA.  One of the first steps in this process involves researching active contract opportunities, or solicitations. Solicitations provide detailed information on how and when a Vendor should respond to the opportunity. If your business is awarded the contract, the Vendor will enter into an agreement with the Government.  Important: Vendors need to ensure that Point of Contact information is always up to date by updating their registration in SAM.gov . Also, the Vendor will need to register in DLA's Internet Bid Board System (DIBBS) . This POC will be notified by email from DIBBS when an award, offer, or modification is issued.
 There are different types of Awards based on the nature of the agreement and the needs of the Government. Three main examples of awards a Vendor will encounter include Contracts, Basic Ordering Agreements, and Purchase Orders. 
 Back to Top  Contracts and Delivery Orders A contract is a mutually binding legal relationship obligating the seller (Vendor) to furnish the supplies or services and the buyer (Government) to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and that, unless otherwise authorized, are in writing. **Long-Term Contract Characteristics:** **Definition:**  A long-term contract (LTCs) is an instrument that sets terms and conditions for an extended period
 **Specific** to a government defined set of requirements (e.g., material or service)
 **Must**have a specified time frame and/or a maximum dollar value
 **Delivery Orders** are used to procure material or service against an LTC Back to Top  Basic Ordering Agreements A Basic Ordering Agreement (BOA) is a written instrument of understanding, negotiated between an agency and a Vendor. BOAs reduce the administrative time required to receive an award between a Vendor and an agency. A BOA is characterized by: **Terms and clauses** applying to future contracts (orders) between the parties during its term.
 A **description**, as specific as practicable, of supplies or services to be provided.
 **Not limited** to a defined material or service.
 **Methods**for pricing, issuing, and delivering future orders under the Basic Ordering Agreement (BOA).
 **Delivery Orders or Calls** are used to procure material or service against a Basic Ordering Agreement. Back to Top  Purchase Orders The Purchase Order (PO) is an award/offer against a solicitation. POs can only be used when the award meets the requirements of the simplified acquisition threshold . The order is an award/offer by the government to a Vendor to procure material or services upon specific terms and conditions.  Characteristics of Unilateral POs: An offer by the Government
 Government signature required
 Vendor signature **not**required
 Government is the obligated party
 Government must give the Vendor opportunity to perform
 Vendor may reject within 14 business days to avoid any adverse performance ratings (see DLA Aviation Acquisition Notices - DAAN-13-02 (Word))
 Government can only withdraw if contract delivery date (CDD) passes and the Vendor has not met the required terms of the offer
 Characteristics of Bilateral POs: Binding award
 Only on under Simplified Acquisition Threshold Orders
 Vendor and Government signatures are required
 Signature represents that both parties (i.e., Government and Vendor) accept the obligation and the Vendor's need to perform
  A unilateral order becomes bilateral when a Vendor does one of the following actions: Accepts it in writing
 A bilateral modification is executed (i.e., Government and Vendor sign a modification)
 When the Vendor delivers, performs, or exhibits an intention to perform (FAR 2.101 ).
  See Additional Award Types and Actions Additional Definitions for Award Types/Actions There are many different award types depending on how the solicitation and order was set up. See the following definitions below for additional award types: **Indefinite Delivery Contract:**A type of LTC, which is utilized when the requirement is known, but exact delivery times and/or exact quantities of future deliveries are not known.
 **Micro-purchase:** Acquisition of supplies or services using simplified acquisition procedures (FAR Part 13.1) , the aggregate amount of which does not exceed the micro-purchase threshold (reference FAR 2.101 ).
 **Indefinite Delivery Purchase Order (IDPO):**Is used for below simplified acquisition threshold, repetitive, low dollar value items. This contracting method applies IDPO concepts to simplified acquisitions. Therefore, the aggregate dollar value of all orders (for the base year and all option periods) cannot exceed the simplified acquisition threshold. IDPOs are bilateral and Delivery Orders are placed against the Basic contract to order the items.
 **Blanket purchase agreements:**Is a simplified method of filling anticipated repetitive needs for open market supplies and services below the simplified acquisition threshold (from FAR 8.405-3 ).
 Back to Top  Contract Basics Collection Navigation  **Back: Contract Basics Collection Home**
 **Next: Reading Procurement Instrument ID Number**
  Article is Part of the Contract Basics Collection. See all Articles: **Contracting Basics: Contracting Instruments and Terminology**
 How to Read a Contract/Order Procurement Instrument Identification (PIID) Number
 Common Government Solicitation and Award Documents
 Award Modifications
 Accessing a Contract/Award in DIBBS
 Terms Glossary Find meanings for acronyms, abbreviations, and codes used throughout the process article below in the table: Term Used
   Meaning/DefinitionBOA
   Basic Ordering AgreementCDD
   Contract Delivery DateDIBBS
   DLA's Internet Bid Board SystemFAR
   Federal Acquisition RegulationLTC
   Long Term ContractPAR
   Post Award RequestPO
   Purchase OrderRFQ
   Request for Quotation  **Submit Vendor Information Hub Site Suggestions and Feedback**