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Indefinite Delivery Indefinite Quantity (IDIQ) FAR Part 16.5

Indefinite Delivery Indefinite Quantity (IDIQ) (FAR Part 16.5)

IDIQ contracts provide a method to order from existing indefinite-delivery contracts awarded by another agency (i.e. Government-wide Acquisition Contracts (GWAC) and Multi-Agency Contracts (MAC)). Existing IDIQ contracts should be considered prior to establishing a new agency specific single or multiple award IDIQ vehicle. However, establishing an agency unique IDIQ contract may be an appropriate business decision to support a portfolio of programs when recurring needs are anticipated.

 

Common Applications

  • All types of supplies and services, to include construction
  • Defense Business Systems
  • Solutions and technologies
  • IT software and products
  • IT systems
  • Weapon systems
  • Aircraft
  • Ships
  • Space systems
  • Research and development
  • Advisory and assistance services
  • Engineering services
  • Special studies

 

Pros

Cons

Access to pre-negotiated prices and labor rates reduces procurement lead time and provides opportunity for further negotiated price discounts Conditions and scope limitations (work scope, ceiling, and period of performance) imposed on GWAC/MAC contract vehicle may reduce flexibility in acquiring products and services
Ability to use variety of pricing arrangements within scope of MAC/GWAC contract vehicle increases opportunity to deliver products and services quickly Fair Opportunity order above FAR threshold is protestable
Wide latitude to streamline or create evaluation process reduces procurement lead time  
Streamlined ordering procedures within existing GWAC/MAC contract vehicle reduces lead time to award  
Access to pre-vetted, qualified contractors reduces performance risk in execution  

 

Restrictions

  • Scope determination required (work, period of performance, and ceiling)
  • Fair opportunity required for a delivery-order or task-order exceeding micro-purchase threshold unless one of the following statutory exceptions applies:
    • The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays
    • Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized
    • The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order
    • It is necessary to place an order to satisfy a minimum guarantee
    • For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source
    • In accordance with section 1331 of Public Law 111-240 (15 U.S.C. 644(r)), contracting officers may, at their discretion, set aside orders for any of the small business concerns identified in FAR 19.000(a)(3). When setting aside orders for small business concerns, the specific small business program eligibility requirements identified in FAR 19 apply.

 

New IDIQ contracts can be awarded to a single or multiple vendors.