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1 1 (December 21, 2023)

handle is hein.crs/govenug0001 and id is 1 raw text is: Congressional Research Service informing the legislative debate since 1914 December 21, 2023 Indefinite Delivery, Indefinite Quantity Contracts The federal government has multiple contracting methods for use in procuring goods and services, one of which is called an Indefinite Delivery, Indefinite Quantity (IDIQ) contract. The Federal Acquisition Regulation (FAR), located at Title 48 of the Code of Federal Regulations, defines an IDIQ contract as one that provides for an indefinite quantity, within stated limits, of supplies or services during a fixed period. The Government places orders for individual requirements. Other types of federal contracts state the exact quantities and delivery timelines for goods or services, but an IDIQ contract does not require such specifics beyond a preset minimum quantity of goods or service at a negotiated price. This is often called a minimum guarantee, which the FAR states should not exceed the amount that the government is fairly certain to order. An agency usually awards within an IDIQ contract a pre-set base period of performance, with elective option years that the government may exercise if it chooses to extend the duration of the contract. According to the General Services Administration (GSA), IDIQ contracts are most often used for service contracts and architect-engineering services. Indefinite Delivery Contracts IDIQ contracts are a subset of indefinite delivery contracts (IDC), and the majority of IDCs are IDIQ contracts. An IDC is a contract that has been awarded to one or more vendors to facilitate the delivery of supply and service orders. The FAR describes three types of IDCs: 1. A definite quantity contract provides for the delivery of a definite quantity of supplies or services for a fixed period. 2. In a requirements contract, a contractor fulfills all requirements of a specified government activity for products or services over a defined time period. 3. An indefinite quantity contract provides for an indefinite quantity, within stated limits, of products or services during a fixed period. The FAR states that indefinite quantity contracts should be used only when a recurring need is anticipated. IDCs are a subset of indefinite delivery vehicles (IDVs), which also include purchasing agreements such as Blanket Purchase Agreements (BPA) and Blanket Ordering Agreements (BOA). In contrast to IDCs, BPAs and BOAs are not legally binding contracts. In FY2023, approximately 51% of Department of Defense (DOD) contract award dollars and 61% of non-DOD contract award dollars were obligated on IDVs, which include IDIQ contracts (see Figure 1). Figure 1. DOD and Non-DOD Contract Award Dollars FY2023 (Billions of Dollars) hilliors ®Han-DoD DOD $450 $400 Wao $35© $300 $250 $200 $150 $100 $50 'D Co fr m t Totl Contracting D Source: CRS analysis of data from the System for Award Management website (SAM.gov), Buying Through Government Acquisition Vehicles report for 10/1/2022 through 9/30/2023. Note: IDVs include IDCs (of which IDIQ contracts are a subset) in addition to BOAs and BPAs. The SAM Buying Through Government Acquisition Vehicles report does not provide the capability to disaggregate IDVs by type to include only IDIQ contracts. S g ad Multiple Award IDIQ A contracting officer may award IDIQ contracts to multiple vendors under a single solicitation. This is called a multiple award IDIQ contract. This allows two or more prequalified vendors to compete for orders from agencies under streamlined procedures. The FAR states that multiple award IDIQ contracts are the federal government's preferred contracting method. By contrast, a single award IDIQ contract is awarded to a single contractor under a single solicitation. An agency may award these contracts competitively or noncompetitively. The FAR requires agency heads to provide written approval for single award IDIQ contracts that exceed $100 million. Orders Once an IDIQ contract has been established, an agency may place orders to fulfill a need. Agencies place task orders for services and delivery orders for supplies. These orders obligate funds and authorize work. Under a single award IDIQ contract, a contracting officer may place an order with the vendor following the processes outlined in the contract. Under a multiple award IDIQ, the FAR requires that an agency give all the IDIQ contract holders fair opportunity to compete for an order. Unlike other government contracting methods, IDIQ contracts establish prices during the individual ordering process. The FAR states that individual orders shall clearly

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