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The Use of Indefinite Delivery/Indefinite Quantity Contracts in Construction

Jul 05, 2012

By Jeffrey W. SneddonStaff photos Jeff final recd 12 03 10

 

The use of Indefinite Delivery/Indefinite Quantity (IDIQ) contracts has been a very useful tool in federal government acquisition for many years. IDIQ contracts had historically been utilized as only single award contracts for the procurement of services or supplies until two important clarifications in federal acquisitions occurred.

 

The first was the Federal Acquisition Streamlining Act (FASA) of 1994. FASA indicated a preference for multiple award contracts. This made clear that the contracting officer is expected to make a sound business decision as to whether single or multiple awards may be more advantageous to the government.

 

The second was the findings through the court system that IDIQ contracts were applicable to construction and architect-engineering services, provided the selection of contractors and placement of orders is consistent with the Federal Acquisition Regulation Part 36. Two important court decisions are “Weeks Marine, Inc. v United States” and “Tyler Construction Group v United States”.

 

Currently there are forms of both multiple and single award construction IDIQ contracts. Examples of multiple awards are, Multiple Award Construction Contracts (MACC) and Multiple Award Task Order Contracts (MATOC). Single awards include Job Order Contracts (JOC) and Simplified Acquisition of Base Engineer Requirements (SABER).

 

Multiple awards result in individual job tasks which are competed by all awardees and are negotiated and priced per the specific requirement. Single awards are priced using commercial unit price books such as R.S. Means, Inc.

 

In addition, multiple awards are design-build for complex projects typically $750,000 to $5,000,000. Single awards involve minimum design for non-complex projects typically $2,000 to $750,000.

 

These contacts typically involve a base year and four one year options. This means that the contractor relationship is long term, with no need to re-solicit for five years.

 

Construction IDIQ contracts provide a streamlined means to complete projects with benefits for both the government agency and the commercial business.



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