Indefinite Delivery/Indefinite Quantity (IDIQ) Contracting

An IDIQ contract can provide the perfect solution when timing and quantities are uncertain.

As provided for by the Federal Acquisition Regulations (FAR) in 16.501(a), when a government program manager is unsure of the exact quantity of products or services needed to fulfill his/her agency’s needs, or the exact time at which these products or services will be needed, an Indefinite Delivery/Indefinite Quantity (IDIQ) contract provides the perfect solution.

IDIQ contracts permit the government program manager to stock quantities at minimum levels, order supplies or services with ease after requirements materialize, and limit the government’s obligation to the minimum quantity specified in the contract.

Supplies or services are acquired through issuance of individual delivery orders or individual task orders. When funding is a problem for the government contracting officer, an IDIQ contract is an ideal solution because the tasks can be aligned commensurate with available funding.

There is no limit on the maximum quantity that can be ordered under an IDIQ contract.

IDIQ contracts allow the government contracting officer/program manager to:

• Choose the team he/she wants to perform the work since the 8(a) firm may subsequently subcontract up to 49% of the work to other subcontractors.
• Minimize the government’s risk since the minimum guaranteed amount is the government’s only obligation to purchase under the contract.
• Obtain the needed supplies or services through a single source––an 8(a) firm.
• Obtain a maximum quantity of supplies or services through a single contract vehicle.
• Order supplies or services when needs arise.
• Order supplies or services commensurate with the availability of funding.
• Communicate freely with the selected 8(a) firm.
• Avoid lengthy delays as a result of protests; 8(a) contracts are exempt from protests as defined in the Federal Acquisition Regulation’s Subpart 33.
• Reach contract award in minimal time since negotiations are conducted with only the selected 8(a) firm.
• Meet the government’s needs with the most flexibility, in the least amount of time, and at competitive rates, using a single contract vehicle.