Making Sense of IDIQ Purchasing Vehicles
This newsletter is the third in a series of five newsletters about the federal government's increasing reliance on multiple award contracts.
The federal government has, in its infinite wisdom, created a host of different names and acronyms to describe various multiple award contracts. The Federal Acquisition Regulation (FAR) defines a delivery order contract (DOC) as "a contract for supplies that does not procure or specify a firm quantity of supplies (other than a minimum or maximum quantity) and that provides for the issuance of orders for the delivery of supplies during the period of the contract." A task order contract (TOC) is defined under the FAR as "a contract for services that does not procure or specify a firm quantity of services (other than a minimum or maximum quantity) and that provides for the issuance of orders for the performance of tasks during the period of the contract."
Delivery order and task order contracts include:
- Multi-agency contracts (MACs)
- Other indefinite-delivery/indefinite-quantity contracts, whether single award or multiple award
- GSA Schedules (also referred to as Multiple Award Schedules and Federal Supply Schedules), including blanket purchase agreements
An IDIQ is a contracting acronym meaning indefinite delivery/indefinite quantity. The term is a catch all for delivery order and task order contracts. The most common use of the IDIQ type contract is a public bid for a long-term contract (usually five years) with multiple awards to meet specific product or service requirements order when the requirement becomes known. Competitions are held among the awardees (companies) for a specific order.
IDIQ's can be for single or multiple agency use. Specific types of IDIQs have their own acronyms. For example:
- A Government-wide Acquisition Contract (GWAC) is a special type of IDIQ contract for acquiring information technology products and services approved by the Office of Management and Budget for use by any federal agency.
- A Multiple Task Order Contract (MATOC) is an IDIQ type contract with multiple awards used by the military for acquiring facility design, construction, and maintenance services.
- A Single Task Order Contract (SATOC) is an IDIQ type contract with a single award used by the military for acquiring facility design, construction, and maintenance services.
And the feds wonder why some are reluctant to play in the federal market. It can be an intimidating and confusing place, especially for the uninitiated.
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