IDIQ contracts are the most widely used for service contracts and architectural engineering services. Rewards are generally valid for both base and option years. The government contracts for supplies (for supplies) or tasks (for services) against a basic contract for individual requirements. The minimum and quantitative limits are set in the basic contract either in number of pieces (for deliveries) or in dollars (for services). A federal acquisition regulation (FAR) Subpart 16.5 offers different possible combinations of indefinite elements that provide the flexibility desired to best meet the needs of governments. The appropriate type of supply contract of indefinite duration may be used to acquire supplies and/or services where the exact dates and/or quantities of future deliveries are not known at the time of the award of the contract. Pursuant to the 10 U.S.C. 2304d and Section 303K of the Federal Property and Administrative Services Act of 1949, contracts of requirement and contracts of indefinite duration, supply order contracts or mission order contracts are also designated. (3) Indefinite quantity contractsDescriptions: An indeterminate quantity contract (IDIQ) (FAR 16.504) provides for an indefinite quantity of supplies or services within the limits indicated during a given period. The government awards contracts for individual requirements. Quantitative limits can be expressed in number of units or in dollars.
The minimum contract amount shall be applied at the time of award. Requirements above the minimum are then contractually imposed if necessary. Supply and volume contracts of indefinite duration provide for an indefinite number of services for a fixed period. They are used when the GSA is unable to determine, beyond a certain minimum, the exact quantities of supplies or services that the government needs during the term of the contract. IDIQs help streamline the contracting process and speed up service delivery. There are three (3) types of supply contracts of indefinite duration: (1) Certain quantity contracts Description: A certain volume contract (FAR 16.502) provides for the delivery of a certain quantity of supplies or services for a specified period, providing for deliveries or services when ordering to specific locations. Multi-award contracts (FAR 16.504c) arise when a contracting authority awards two or more contracts from an invitation for comparable supplies and services for which award to a single supplier would be impractical or would not meet the overall requirements. Prices are valid for the same types of generic items in different places. (2) Requirements Contracts Description: A needs contract (FAR 16.503) provides that all actual procurement requirements of designated government activities for supplies or services must be met for a specified period of time of the contract, with deliveries or services to be planned through procurement to the contractor. . . .