IDIQ Contracts Guide 2025: How Indefinite Delivery Indefinite Quantity Works
Learn how IDIQ contracts work in federal contracting. Understand task orders, ceiling values, ordering periods, and strategies to win IDIQ vehicle opportunities.
Quick Answer: What is an IDIQ Contract?
An IDIQ (Indefinite Delivery Indefinite Quantity) contract is a pre-competed contract vehicle that allows government agencies to order services or products as needed. Once you win an IDIQ, you compete for task orders against other contract holders—not the entire market. IDIQs have minimum and maximum dollar ceilings and typically run 5-10 years.
What is an IDIQ Contract?
IDIQ stands for Indefinite Delivery Indefinite Quantity. It's one of the most common contract types used by federal agencies because it provides flexibility while maintaining competitive pricing.
Key IDIQ Characteristics
Contract Structure
- • Pre-competed "umbrella" contract
- • Multiple award to several contractors
- • Minimum guarantee (often $2,500-$10,000)
- • Maximum ceiling (can be billions)
Work Execution
- • Work issued via task orders
- • Fair opportunity competition
- • Faster procurement process
- • Scope defined in base contract
Think of an IDIQ as getting a "seat at the table." Winning the base contract doesn't guarantee work—it gives you the opportunity to compete for task orders as they're released throughout the contract period.
How IDIQ Contracts Work
The IDIQ Process Flow
Base Contract Competition
Agency issues RFP for IDIQ vehicle, evaluates proposals, awards to multiple contractors
On-Ramping
Winners receive contract with established terms, rates, and scope
Task Order Release
Agency identifies need and issues task order RFP to IDIQ holders
Fair Opportunity Competition
All IDIQ holders submit proposals for the specific task order
Task Order Award
Agency evaluates and awards to best value proposal
IDIQ Key Terms
Types of IDIQ Contracts
Single Award IDIQ
One contractor wins the entire vehicle:
- →All task orders go to winner
- →No task order competition
- →Less common but lucrative
Multiple Award IDIQ (MAC)
Several contractors share the vehicle:
- →Fair opportunity for each task order
- →More common structure
- →Requires ongoing BD effort
Popular Government-Wide IDIQ Vehicles
Winning IDIQ Contracts
Competition for major IDIQ vehicles is intense. Here's how to position your company:
Evaluation Factors
- ✓Relevant past performance
- ✓Technical approach and capability
- ✓Key personnel qualifications
- ✓Management approach
- ✓Price/cost competitiveness
Preparation Tips
- →Build past performance in target areas
- →Develop competitive labor rates
- →Team with complementary firms
- →Monitor recompete announcements
- →Engage with agency before RFP
Task Order Competition
Winning the base IDIQ is only half the battle. You must compete effectively for task orders.
Fair Opportunity Process
Under FAR 16.505, agencies must provide "fair opportunity" to all IDIQ holders for each task order, unless an exception applies:
Exceptions Allowed
- • Urgent requirements
- • Only one contractor capable
- • Logical follow-on work
- • Minimum guarantee orders
Typical Timeline
- • RFP issued to holders: Day 0
- • Proposals due: 7-30 days
- • Evaluation: 2-4 weeks
- • Award: 30-60 days total
Task Order Win Strategies
- 1.Build relationships with ordering contracting officers
- 2.Respond to every opportunity within your capability
- 3.Price competitively using pre-negotiated rates
- 4.Tailor your response to specific task order requirements
- 5.Deliver excellence to earn re-compete advantages
IDIQ vs BPA: Key Differences
| Feature | IDIQ | BPA |
|---|---|---|
| Type | Contract | Ordering agreement |
| Ceiling | Required | Optional |
| Minimum Guarantee | Required | Not required |
| Fair Opportunity | Required (MACs) | Depends on type |
| Typical Use | Large, recurring needs | Repetitive small purchases |
| Protests | Allowed (over $10M) | Limited |
Frequently Asked Questions
What's the difference between IDIQ and ID/IQ?
They're the same thing. IDIQ and ID/IQ are both abbreviations for Indefinite Delivery Indefinite Quantity. You'll see both used interchangeably in government contracting.
Can small businesses compete for IDIQ contracts?
Yes—many IDIQ vehicles have small business set-aside pools or are entirely set aside for small businesses (like STARS III for 8(a) firms). Others require small business participation through subcontracting plans.
What happens if I don't win any task orders?
You still receive the minimum guarantee (often just $2,500-$10,000 over the contract period). However, not winning task orders means you're not building past performance on that vehicle, which hurts future opportunities.
Can I protest a task order award?
For task orders over $10 million (civilian) or $25 million (DoD), you can file a protest with GAO. Below these thresholds, protest rights are limited to the agency level through an ombudsman process.
How do I find IDIQ opportunities?
Base IDIQ solicitations are posted on SAM.gov. Task orders are typically only sent to existing contract holders. Use BidFinds to track upcoming IDIQ recompetes and new vehicle announcements.
Find IDIQ Opportunities
Track IDIQ base contract solicitations and recompete announcements with BidFinds. Get notified when new vehicles open for competition.
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