Indefinite Delivery/
Indefinite Quantity (IDIQ)
Jorge A. Rueda
IDIQ Terminology
IDIQ Classification
Single Work Order IDIQ
Single contract awarded to single contractor. Once the need to
issue the work arises, the contractor then performs the desired
services or furnishes the requisite supplies.
Single Award IDIQ
Single contract awarded to single contractor who then is
awarded work orders based on the pricing furnished in the
initial bid package.
Multiple Award IDIQ
Single contract awarded to multiple contractors. Only those
selected are subsequently allowed to bid on work orders.
Decision Making Process
Single
Work Order
Single Award
Multiple Award
Advantages
-
Lower use of in-house resources
-
Flexibility in quantity and delivery scheduling
Supplies and services are ordered when needed
Owners commit for a minimum or no amount of work
Owners can direct shipments directly to users
-
Shorter project delivery period
Contractor involvement in preconstruction activities
Fast use of year-end funding
Lower cost in future issuance of work orders
Useful contracting option during emergencies
Increase quality and timeliness of delivery
-
Reduce potential for graft and corruption
Highly competitive
Lower bid prices
Larger participation of small and disadvantaged business
Preference over single award contracts expressed by FAR
Level 1
Level 2
Level 3
Disadvantages
• Lack of knowledge and experience
• Lower control over contract budget
• High sensitivity to claims regarding inappropriate
use of federal and/or state funds
Conclusion
• To select an IDIQ model MnDOT must consider the scope of
the contract, the estimated amount of work to be ordered,
and the capabilities of potential bidders.
• MnDOT would find more benefits as they move from Single
Work Order to Multiple Award Contracts, but it requires
higher coordination and greater use of in-house resources.
• MnDOT must design training programs to instruct contractors,
consultants, and MnDOT staff about IDIQ contracting.
• There must be a balance between the expected number of
task orders to be issued and the number of awardees.
QUESTIONS?