Indefinite Delivery/Indefinite Quantity (IDIQ) Contract
A contract that establishes ceiling prices and terms but allows the government to order specific quantities as needed over a multi-year period through individual task orders.
How It Works
IDIQ contracts are among the most common vehicle for federal IT services, consulting, and professional services. They provide flexibility: the government defines broad requirements and qualifies one or more contractors, then issues individual task orders for specific work as needs arise. Major IDIQ vehicles include GSA Schedule contracts, CIO-SP3, SEWP, and Alliant 2. Multiple-award IDIQs create competition at the task-order level — several contractors hold the contract, and they compete for each individual order. IDIQ contracts can run for 5-10+ years with ceiling values in the billions.
Related Terms
- Federal Contract — A legally binding agreement between the U.S. government and a private company to provide goods or services — from fighter jets to IT consulting.
- Task Order — An individual work order issued under a larger IDIQ contract, specifying the exact scope, deliverables, and price for a particular piece of work.
- Competitive Bidding (Full and Open Competition) — The standard procurement process where the government publicly solicits proposals from multiple vendors and selects the best offer based on price, quality, and capability.
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About This Definition
This definition is part of the TaxDollarData Federal Spending Glossary — 31 terms explaining how the U.S. government spends taxpayer money. All definitions are written in plain language for taxpayers, journalists, contractors, and researchers.