IDIQ contracts are most often used for on-call service contracts, Architect-Engineering (A-E) services, and
job order contracting. Awards are usually for a specified number of base years with renewal options for additional years. These contracts typically do not exceed a total of five years in duration. The government places delivery orders (for supplies) or task orders (for services) against a basic contract for individual requirements. Minimum and maximum quantity limits are specified in the basic contract as either number of units (for supplies) or as dollar values (for services). The government uses an IDIQ contract when it cannot predetermine, above a specified minimum, the precise quantities of supplies or services that it will require during the contract period. Exact dollar amounts for minimums must also be named. Market research is involved before an IDIQ contract is awarded and there are program offices dedicated to the process. An IDIQ contract allows for a certain amount of contract process streamlining, as negotiations can be made only with the selected company (or companies), and such contracts are exempt from protest, per Federal Acquisition Regulations Subpart 33. IDIQ contracts are frequently awarded by various U.S. government agencies, including the
General Services Administration (GSA) and
Department of Defense. They can be in the form of multi-agency contracts under the
Government-Wide Acquisition Contracts (GWAC) system, or they may be government agency-specific contracts. In recent years, non-federal government entities have implemented the utilization of this terminology as it relates to
task order contracts and job order contracting. ==History==