Indefinite Delivery, Indefinite Quantity Contracts (CRS Report for Congress)
| Release Date |
Revised Nov. 12, 2024 |
| Report Number |
IF12558 |
| Report Type |
In Focus |
| Authors |
Dominick A. Fiorentino; Alexandra G. Neenan |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
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 preset 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.”
