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Multiple Award IDIQ Contracts – Get on the Team | Episode 20

• Fedbiz Access • Season 2 • Episode 20

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A Multiple Award IDIQ (Indefinite Delivery, Indefinite Quantity) Contract is pre-competed and awarded to a select group of companies with an opportunity to participate in that particular contract based on their proposals for specific delivery or task orders within the IDIQ contract.

In this episode of FedBiz’5 we are hosting Anthony D’Attore from FedBiz Access to discuss Multiple Award IDIQ Contracts as a way to get in on a pre-competed contract.

IDIQ stands for indefinite delivery, indefinite quantity. In other words, contracting officials know they're going to need certain goods or services. They don't know how much, and they don't know when. So, the contract is issued as an IDIQ contract.  

An IDIQ contract provides an indefinite quantity of goods or services for a fixed time. Under the IDIQ contract, the government places delivery orders (for goods) or task orders (for services) against a basic contract for individual requirements.

Single Award and Multiple Award IDIQs are a primary way that government agencies solicit contracting work. Single Award IDIQs are awarded to a single party.

Multiple Award IDIQs on the other hand, are awarded to a group of companies or contractors who must then compete against each other for each project or order within the IDIQ contract.

An IDIQ contract is initially publicly posted as a solicitation. An analogy of a Multiple Award IDIQ would be like at the first day of high school you walk through the door and there's a poster up that says they want everybody to try out for the basketball team. That would be the IDIQ contract solicitation.

Some people will go to try out and some people won't. Well, the people that respond to the Multiple Award IDIQ are the ones that go to the tryout. Now after the tryout some people will make it on the team and some people won't. Some companies will be awarded the IDIQ contract based on their proposal (based on their basketball talents as in our example) and some won't. 

When a delivery order (for goods) or a task order (for services) is issued on the project, it does not go to a specific company. Instead, those companies that are participating in a Multiple Award IDIQ compete for each delivery or task order by issuing another proposal and being awarded that particular job within the IDIQ contract. 

The benefit is these companies are competing against a limited pool of other companies. Some of these companies may even form teaming arrangements or act as a subcontractor to a prime contractor relationship within the Multiple Award IDIQ pool of companies.

IDIQ solicitations can be found on SAM.gov or on a market research system like the Market Intel Database. Market research can help businesses find out who's been doing the work, what part of larger contracts can support a prime vendor, and what new opportunities are on the horizon.

In addition, larger contractors or prime vendors that bid on large scale IDIQ’s typically must include a subcontracting plan that includes certified vendors across the set-aside categories.

FedBiz Access offers research and engagement strategy sessions, as well as marketing packages to government contract

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Multiple Award IDIQ Contracts – Get on the Team

FedBiz’5 – Episode 20

Jesse Sherr  0:02  

My name is Jesse and I work with small businesses in the government marketplace.

Jesse Sherr  0:06  

You're listening to FedBiz'5, where you get informed, get connected, and get results on everything government contracting. 

Jesse Sherr  0:18  

Hello, and welcome to another episode of FedBiz'5. 

Jesse Sherr  0:21  

Anthony is here. How's it going, Anthony?

Anthony D'Attore  0:24  

Pretty well, thanks. Thanks for asking.

Jesse Sherr  0:26  

He is with us today to talk about Multiple Award IDIQ contracts. So, let's go ahead and jump right in. What are IDIQ contracts?

Anthony D'Attore  0:37  

An IDIQ means indefinite delivery, indefinite quantity. In other words, they know they're going to want goods or services. They don't know how much, and they don't know when. So, that's an IDIQ. 

Anthony D'Attore  0:51  

Now an IDIQ is always posted, and an IDIQ is like the first day of high school. Right, and you go, you walk through the door, and there's a poster up that says they want everybody to try out for the basketball team. That would be the IDIQ solicitation.

Anthony D'Attore  1:05  

Some people will go to try out and some people won't. Well, those are the people that respond to the IDIQ are the ones that go to the tryout. Now after the tryout some people will make it on the team and some people won't. Some people will get on the IDIQ and some people won't. 

Anthony D'Attore  1:22  

Now an IDIQ will typically have, you know, this is a $5 million contract. But each member of that team will be sometimes guaranteed a certain amount, $50,000. And these are just arbitrary figures, by the way. So, they might be, you know, they might be offered $50,000 just for getting on the team. Now, there's a big spread between that money, everybody getting $50,000, to get to the $5 million. 

Anthony D'Attore  1:51  

The way it's determined on how much of that $5 million you get is you competing for court time with the other people on the IDIQ. So, it might be based on the services you provide. It might be based on the fact that you’re just easier to work with. It might be based on your pricing. It could be any number of things. But you are for the duration of that contract, you are competing for court time. 

Anthony D'Attore  2:19  

When the contract ends and it gets recompeted, well another IDIQ comes out. Some people may stay on the team, some people will not be on the team, and the process starts all over again. Alright, so that's a typical IDIQ.

Jesse Sherr  2:31  

Okay, so good analogy by the way, but correct me if I'm wrong, a Multiple Award IDIQ contract is basically pre-competed, meaning they are taken to bid before specific projects have been identified. Right?

Anthony D'Attore  2:45  

Right. 

Jesse Sherr  2:46  

So, that would mean businesses that pre-compete and are selected for the IDIQ are the only companies with an opportunity to participate in that particular contract for an agency's recurring needs?

Anthony D'Attore  3:00  

Right. So, it does make you a preferred vendor with the federal government. 

Anthony D'Attore  3:04  

Government buyers can theoretically go in, look up the information that they're looking for, find your company, look at your pricing, say okay, you're the guy or gal, and purchase from you. 

Jesse Sherr  3:16  

All right. Now I have a better understanding and we appreciate it. Thank you so much for joining us again today.

Anthony D'Attore  3:23  

All right. Thanks, Jesse.

Jesse Sherr  3:24  

You got it. 

Jesse Sherr  3:25  

But before we go, FedBiz Access has an offer exclusively for our FedBiz'5 podcast listeners. Test drive the Market Intel Database free for 30 days. Just visit FedBizAccess.com/Market-Intel and use coupon code 'INTEL30' (all caps) at checkout. That's I-N-T-E-L-3-0.

Jesse Sherr  3:50  

The Market Intel Database is your subscribed insight to buyers and competitors giving you the FedBiz advantage to win government awards. 

Jesse Sherr  4:01  

Today's podcast is sponsored by FedBiz Access, government contracting made simple.

Jesse Sherr  4:06  

Visit them at FedBizAccess.com or contact them at 888-299-4498.