BLOOMBERG INCREASES Q4 IDIQ BUSINESS PROJECTION

As much as 66% of the $229 billion estimated to be available for federal agencies to spend between now and the end of the FY’23 fiscal year will go through Indefinite Delivery Indefinite Quantity (IDIQ) contracts according to new data released last week by Bloomberg Government.  The figure underscores not only why it is important to have such vehicles, but the importance of knowing how to sell through such vehicles and how to guide federal customers on using them.  Bloomberg had previously predicted that 60% of remaining spend would be allocated via IDIQ contracts, but increased its projections based, in part, on expiring business that is currently being conducted via such contracts.  Other Transaction Authority (OTA) is another area where Bloomberg expects a sizable increase in business.  They estimate that $4.8 billion will be committed via this non-FAR based acquisition method, an increase of nearly 94% over FY’22.  Although these data points suggest that open, flexible acquisition methods should fare well at the end of the fiscal year, not all such channels are forecasted to see an increase.  Bloomberg projects that Basic Ordering Agreements (BOA’s) will see a decline of 14.2% from FY’22, though such business will still account for $4.4 billion.  The leading civilian agencies where the most opportunities may remain are the VA, State, and various parts of HHS.  Contractors should never assume that their customers are aware of all the paths available to them to easily transact year-end business.  While companies should never make their customers choose among dozens of such options, they should absolutely be prepared to recommend a few and be ready to show why the use of such methods is in their best interest.