What Is an Indefinite Delivery Contract

Requirements contract — An application contract provides that all (or parts) of the actual purchasing needs of the postal service as a whole or of a particular postal service organization are met for certain goods and services to be delivered or performed as ordered during the term of the contract. Use a requirements contract for the following: Establishing a single IDIQ contract for agencies can be an appropriate business decision to support a portfolio of programs when recurring applications are expected. New IDIQ contracts can be awarded to one or more suppliers: Finished Quantity Contract — A Defined Quantity Of Indefinite Delivery (IDDQ) contract provides for a certain quantity of certain goods or services during the term of the contract, with deliveries or services to be scheduled at certain locations when ordering. All quantity contracts must contain clause 2-41: Certain quantity. For federal IT contracts, the use of gwac and IDIQ multiple allocation practices increased in the 1990s and beyond. Traditionally, products and services purchased under contracts awarded by GSA have been resold by GSA across the federal government. For example, GSA resold remote communications services, telephone equipment and professional services based on GSA IDIQ contracts with private providers. In addition, the GSA oversaw the acquisition of information technology by other executive agencies. Each of these purchases was intended for the organization that procured the procurement.

In the early 1990s, Thomas J. Thomas J., Commissioner of Information Resource Management Services. Buckholtz, that the GSA should offer agencies the opportunity to carry out their purchases so that all agencies can buy from the resulting contracts. At the beginning of 1993, twenty-four non-GSA projects continued to purchase GWAC. In 2006, a journalist estimated the total amount of GWAC`s ongoing activities at $290 billion, including outstanding contracts, tenders and planned purchases. [Citation needed] In U.S. federal government procurement, IDIQ is an abbreviation for the term indefinite delivery/quantity. This is a type of contract that provides for an indeterminate amount of supplies or services over a certain period of time. The legal origin of IDIQ contracts is section 16.504(a) of the Federal Acquisition Regulation (FAR) (48 C.F.R. 16.504).

IQPs are sometimes referred to as „task orders“ or „packing slip contracts“. IDIQ contracts are a subtype of the Open-ended Delivery Contract (CDI), which is a „vehicle awarded to one or more suppliers to facilitate the delivery of orders for supplies and services“. [1] Although the total purchase price of the goods and services can only be determined after the contract has been awarded, the contract agent is required to analyse the cost or price of the goods to be supplied or the services to be supplied under the contract at the time of the award of the contract. In order to determine a fair and reasonable price for the contract with indeterminate delivery, the procuring entity must develop a basis on which the cost or price assessment can be made. In the case of goods, the contract agent may require suppliers to provide fixed unit prices for the duration of the contract and then apply those prices to the quantities estimated by the postal service in order to obtain an estimated total price. For services, the client can use different approaches to provide the most comprehensive way to conduct the assessment. For orders whose price structures use working time rates, contract agents may request a breakdown of wages, indirect costs, overhead and administrative costs and profits which would be used for valuation purposes which, when applied to postal service estimates, may result in an overall price assessed. Alternatively or in addition to working time rates, providers may be asked to submit a detailed cost proposal for a hypothetical model or work order for one or more of the services to be provided under the contract.

The contract agent may use historical information related to similar previous projects to estimate the work mix, hours worked or materials. The supplier`s responses to the standard contract can provide information about its technical and human approach and, therefore, provide an appropriate basis for assessing the relative costs of competing proposals. (For more information, see Section 2-34, Performing a Price/Cost Analysis.) In the case of multiple contracts with permanent service, contracting entities may decide to exclude one or more of the winners from a subsequent competition for a particular contract or to select a single winner for a particular contract if this is beneficial for the postal service. The reasons for this decision must be recorded in the file. (See 4- Decision to place an order – multiple awards.) With an IDIQ vehicle, buyers place orders for individual needs, and quantity limits can be specified in number of units or monetary values. The contract obliges the buyer to order and the contractor to provide at least a specified minimum quantity of deliveries or services. An order contract must specify the performance period, including the number of option periods and the total minimum and maximum quantity of supplies or services that the government will purchase under the contract. A multi-agency contract (MAC) is a mission or supply contract established by an agency for the use of government agencies to procure supplies and services in accordance with the Economy Act. MACs include information technology contracts entered into under 40 U.S.S.C§ 11314(a)(2).

The award of a single supply contract of indefinite duration may provide the best commercial solution in the following circumstances: If a claim contract concerns the repair, modification or revision of the ownership of the postal service, the application must indicate that the failure of the postal service to supply these items in the quantities described as „estimated“ or „maximum“ will not entitle the supplier to a price adjustment in accordance with the clause used in the contract on the Authorized Post Office Property. (See Ownership Clauses, 2-11: Ownership of the Postal Service – Fixed Price, 2-12: Postal Service Property – Short Form, 2-13: Postal Service Property – Non-Fixed Price and 2-14: Furnished Postal Service Property „as is“). All application contracts must include clause 2-43: Requirements. IDIQ contracts provide a method of ordering existing agency contracts with unlimited delivery, as well as orders placed by another agency (i.e., Government-Wide Acquisition Agreements (GWOCs) and Multi-Agency Contracts (MACs)). IDIQ contracts are most commonly used for on-demand service contracts, architect engineering (A-E) services, and contract contracts. Premiums are usually valid for a certain number of base years with renewal options for subsequent years. As a general rule, these contracts do not have a total duration of five years. The government places orders for supplies (for supplies) or orders for tasks (for services) against a basic contract for individual needs. The minimum and maximum quantity limits are set in the basic contract either in quantities (for deliveries) or in dollars (for services). The government uses an IDIQ contract when it cannot predetermine the exact quantities of supplies or services it needs during the term of the contract beyond a certain minimum. [2] [3] The exact dollar amounts for the minimum amounts must also be disclosed. [4] Services, single award: The type of contract expected is an IDIQ (Firm Fixed Price, Indefinite-Delivery) contract with a base term of five years.

The government expects a contract to be awarded to an IDIQ winner. Examples include A&E services, facility maintenance, and landscaping IDIQ contracts are more efficient than traditional supply contracts and therefore cost less money and time/resources. This is not to say that IDIQ contracts do not involve a long series of checks and balances and approval processes. In fact, there is a lot of market research before an IDIQ contract is awarded, and there are program offices dedicated to the process. [5] An IDIQ contract streamlines the contracting process, as negotiations can only be conducted with the selected company(ies) and these contracts are exempt from protests under Subpart 33 of the Federal Acquisitions Regulations. . . .