How Do Idiq Contracts Work

Indefinite delivery, indefinite quantity contracts provide for an indefinite quantity of services for a fixed time. They are used when GSA can’t determine, above a specified minimum, the precise quantities of supplies or services that the government will require during the contract period.

What are the benefits of an IDIQ contract?

Inter- viewees said that IDIQ contracts accelerate the project delivery period, reduce precon- struction costs and provide flexible delivery scheduling. Multiple-award IDIQ contracts also promote price competition and reduce the risk of contractor default.

How do I get on IDIQ?

To establish an IDIQ, Contracting Officers (COs) need to determine a minimum quantity, a reasonable maximum quantity, a fixed time period, and a Statement of Work (SOW). Although the term “indefinite” is used, reasonable thresholds are still established for contractors.