IDIQ (Indefinite Delivery Indefinite Quantity)

What is IDIQ (Indefinite Delivery Indefinite Quantity)?

An Indefinite Delivery Indefinite Quantity (IDIQ) contract is a type of contract frequently used by the U.S. Federal Government to procure a wide variety of services and supplies. It establishes pre-negotiated rates and terms for recurring needs over a specified period, streamlining the acquisition process.

Definition

IDIQ contracts, governed by FAR Part 16, are agreements where the government specifies a minimum and maximum quantity of supplies or services that it will order during the contract term. Instead of procuring a fixed amount upfront, the government issues task orders (for services) or delivery orders (for supplies) against the IDIQ contract as its needs arise. IDIQs can be single-award (awarded to only one contractor) or multiple-award (awarded to several contractors). Multiple-award IDIQs require the government to provide all awardees a fair opportunity to compete for each task order, with limited exceptions. This contract type allows agencies to have readily available access to qualified contractors, reducing procurement lead times and enabling them to adapt quickly to changing requirements.

Key Points

• Minimum and Maximum Quantities: IDIQ contracts define both a minimum and a maximum order quantity, providing flexibility while setting bounds for potential work. The government must order at least the minimum specified, while contractors are not obligated to accept orders exceeding the maximum.
• Task Orders and Delivery Orders: Orders for services are typically referred to as "task orders", while orders for supplies are referred to as "delivery orders". These orders are issued against the IDIQ contract and define the specific work to be performed or supplies to be delivered.
• Fair Opportunity (Multiple Award IDIQs): When an IDIQ is awarded to multiple contractors, the government is generally required to give each awardee a "fair opportunity" to compete for task or delivery orders, fostering competition and ensuring the government obtains the best value.
• Contract Length: IDIQ contracts typically have a base period with option years. The total term, including options, is often five years, but can vary based on agency needs.

Practical Examples

1. IT Services IDIQ: An agency needs ongoing IT support. They award an IDIQ contract to multiple firms. When a specific IT project arises, the agency issues a task order solicitation to the IDIQ holders, who then submit proposals for that specific project.
2. Construction Services IDIQ: A government agency managing military facilities awards an IDIQ to multiple construction companies. As various renovation projects arise at different bases, task orders are issued to the IDIQ holders based on their expertise and proximity to the project location.
3. Training Services IDIQ: The Department of Homeland Security needs regular training courses for its employees. They award an IDIQ to multiple training providers. When a specific course is needed, a delivery order is placed with one of the IDIQ holders, specifying the number of participants, location, and dates for the training.