Innovative contracting methods
Indefinite Delivery / Indefinite Quantity
IDIQ is a type of contract that provides for an indefinite quantity of work during a fixed period of time. The Department would place orders for individual requirements. Quantity limits may be stated as number of units or as dollar values.
IDIQ contracts require the Department to order and the contractor to furnish as least a stated minimum quantity of work. In addition, if ordered, the contractor must furnish any additional quantities, not to exceed the stated maximum. The minimum quantity should not exceed the amount that the Department is fairly certain to order.
When to use IDIQ
- IDIQ contracts have a variable quantity usually established by Dollar Value.
- Work sites are identified and assigned by issuing Task Orders after the contract is approved.
- No work is authorized on the IDIQ contract without a fully executed Task Order.
Benefits
- Budget-Fiscal Year spending – IDIQ can be used to control spending at the end of a fiscal year
- Combining Contracts – IDIQ can be used to combine several small contracts into one larger contract which reduces the number of lettings and simplifies contact administration
- Open Contract – IDIQ reduces amount of time between need and delivery of project
- Reduced Design Cost – One detailed plan and specifications are utilized to perform multiple similar projects
Drawbacks
- Each Task Order is Fiscally restrained.
- After reaching the minimum quantity, each Task Order needs new funding.