If you have spent any time in the Business-to-Government marketplace you know that the Government has an acronym for everything! One acronym that you may see pop up often in Government contracting is IDIQ. Actually, a GSA Schedule is itself a type of IDIQ.

IDIQ stands for “Indefinite Delivery, Indefinite Quantity,” a contract type that allows an agency to purchase an undefined quantity/delivery over a set period of time.  In an IDIQ, an agency can negotiate with one or several competitively awarded vendors on ongoing opportunities. In addition, it does not have an established deliverable, rather it will identify a value cap and end date with option periods.

One main difference between  the IDIQ and the GSA Schedule is that IDIQ is restricted to use within the awarding agency or sister agencies.  This means they are not “government wide” contracting vehicles. Another difference is when awarded, an IDIQ contract is closed to new contractors until the contract expires.  This usually takes three to five years. This differs from the GSA Schedules which is an “evergreen” solicitation, or continuously open to new bidders. One thing that they do share is that the GSA Schedules and IDIQ contracts do not guarantee work. Furthermore, these contracts are “master” contracts through which individual task/delivery orders are placed.

Government agencies prefer to establish their own IDIQ contracts

Establishing their own IDIQ offers them the following advantages:

  • Expedite ordering process by reducing procurement lead times
  • Establish negotiated contract terms and rates
  • Establish a selection of pre-qualified bidders
  • There is no dollar limit on individual task/delivery orders
  • Provide simplified administration

Proposals for IDIQ contracts require a technical and price proposal demonstrating your company’s contracting experience and guaranteed ceiling pricing. Being the sole vendor awarded the IDIQ, is a great source of business. When the IDIQ is awarded to 10 other vendors, the competition for a task/delivery order becomes greatly reduced compared to an open market bid. Be aware though that some of the competing vendors on an IDIQ may further reduce their offered pricing to win a task/delivery, which could severely limit your margins.

Most IDIQ opportunities are posted in SAM.gov, GSA eBuy, an agency’s direct procurement site, or sometimes sent directly to select vendors to compete. Keep your eyes peeled because an IDIQ award can mean great success for your business. Also, be sure to practice good forecasting! If you know a current IDIQ is expiring and coming up for rebid, set a reminder 6 months to 1 year out to start gathering intelligence and positioning yourself as a legitimate candidate. GSA had also released a dashboard tool that allows the viewer to monitor various types of acquisition actions, to include IDIQs and Task Orders placed against an IDIQ.

Feel free to give us a call at 210-402-6766, send us an email at hello@coleygsa.com, or schedule a time to talk and we will be happy to answer any question you may have about Indefinite Delivery, Indefinite Quantity Contracts.

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