DOD, DHS, HHS & VA LEAD USERS OF IDIQ CONTRACTS
A recent GAO report found that federal agencies obligate over $130 billion annually against Indefinite Delivery Indefinite Quantity (IDIQ) contracts, staking a strong claim that this acquisition method remains an important part of many agency acquisition strategies. DOD is the largest user of IDIQ contracts, especially those awarded by other agencies. The report helps support the position taken by many that the Pentagon can most effectively meet its missions when using IDIQ’s let by GSA, NASA, and NIH in unison with internal IDIQ vehicles. GAO found that task orders issued against multiple award IDIQ’s were competed 85% of the time, giving companies a fair opportunity. On the other hand, GAO found that 10 of the 18 single-award DOD IDIQ contracts they reviewed were not competed. DOD officials stated that this was generally because only one contractor could meet the need. For contractors, these findings mean that participation in IDIQ contracts remains essential, as does the building and maintenance of strong relationships. Opportunities remain to develop and build upon business via IDIQ vehicles on a sole source basis given the right relationships and trust. While the total number of IDIQ contracts may decrease somewhat, business via this method of acquisition remains strong.