What are the three different types of indefinite-delivery contracts?

(a) There are three types of indefinite-delivery contracts: definite-quantity contracts, requirements contracts, and indefinite-quantity contracts.

What is an indefinite delivery/indefinite quantity IDIQ contract?

In U.S. Federal government contracting, IDIQ is an abbreviation of the term indefinite delivery/indefinite quantity. This is a type of contract that provides for an indefinite quantity of supplies or services during a fixed period. IDIQs are also sometimes called “Task Orders” or “Delivery Order Contracts.”

When would you use an indefinite-delivery contract?

The appropriate type of indefinite-delivery contract may be used to acquire supplies and/or services when the exact times and/or exact quantities of future deliveries are not known at the time of contract award.

What do indefinite-delivery contracts offer?

An indefinite-delivery contract provides for an indefinite quantity of services, but a fixed period. It provides flexibility to meet government needs while still protecting a business’s interests in the deal. An indefinite-delivery contract provides for an indefinite quantity of services, but a fixed period.

What is the purpose of an IDIQ?

The purpose of an IDIQ is to allow the government to select a single or group of vendors who are qualified in the given industry. These vendors will bid on task orders that will be released later down the line.

What is the difference between a BPA and an IDIQ contract?

In the debate of IDIQ vs BPA vs BOA, remember that IDIQ is an explicit contract, while the other two are just agreements. There is one key difference between BPAs and BOAs, and that is that BOAs don’t include a price list when they are created.

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.

Which of the following describes an indefinite quantity contract?

(a) Description. An indefinite-quantity contract provides for an indefinite quantity, within stated limits, of supplies or services during a fixed period. The Government places orders for individual requirements. Quantity limits may be stated as number of units or as dollar values.

How can I start IDIQ?

To establish a binding IDIQ contract, FAR 16.504(a)(2) requires that there be a stated guaranteed minimum quantity to be ordered and this minimum must be more than a nominal quantity without exceeding the amount the government is fairly certain to order.

Are IDIQ contracts funded?

If you were to examine an IDIQ you would notice that there is no funding on the IDIQ. Only a guaranteed minimum. The guaranteed minimum is necessary to meet the basic legal requirements of a Govt contract…which are Offer, Acceptance, Consideration (money), Mutual Assent, and Legal Authority to Bind the Govt.

What is a single award IDIQ?

Single-Award IDIQs The first type of IDIQ contract is a single-award IDIQ. A single-award IDIQ may be established and awarded to a single contractor. The base contract has no funding associated with it, and it lays out the terms and conditions and pricing applicable to any orders placed against the base contract.