Government Contract Types: IDIQ (Indefinite Delivery, Indefinite Quantity)

Federal and state governments have a complex vocabulary that can seem like a different language. However, understanding the sea of acronyms and contract types is essential for all businesses looking to navigate the sea of government contracting.

In the section known at "Contract Types," Government Contractors wants to summarize and provide resources around all the different contract vehicles federal and state governments use to acquire the products and services they need.

Questions? Or interest in sharing your perspectives and expertise in these government contracts with the broader GovCon community? Please reach out to us at: editors@governmentcontractors.co

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OVERVIEW

IDIQ (Indefinite Delivery, Indefinite Quantity) Contract

IDIQ stands for "indefinite delivery, indefinite quantity." It is a federal government contract type that allows an indefinite quantity of services for a fixed time.

Why do government agencies use IDIQs?

In short, IDIQs are used when the General Services Administration (GSA) cannot determine, above a specific minimum number, the exact total quantity or quantities of supplies or services that a government agency will need during the life of the contract.

IDIQs are seen frequently where the government needs a contractor to provide a wide range of services, such as ongoing maintenance, enhancements, existing operations, and other tasks. Technology and defense related contracts are popular with IDIQs, as well as anything involving architecture and engineering.

The benefit of an IDIQ is that it helps to reduce the complexity of the contract, streamline the process, and improve the speed of delivery.

IDIQ contracts will have a set number of years, and an option year or option years. Contracts do not last longer than 5 years in total.

This contract type allows the government to place delivery orders (supplies) or task orders (for services). Each order has requirements that are defined in the contract, such as quantities and price.

An IDIQ can be for a single agency, such as the United States Postal Service or U.S. Army, or they can be multi-agency, and managed through the Government-Wide Acquisition Contracts (GWAC) system.

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