What is an IDIQ Contract?

Government contracting doesn’t always feel or seem straightforward when you’re looking in from the outside. Even once you get past all the acronyms for different agencies, just trying to understand different contract types and their acronyms can be a lot. 

We get it. 

The good news is that once you understand the different contract vehicles the federal government uses, it gets a lot clearer AND you might even get excited when you see a specific type of contract vehicle pop up on an opportunity you’re interested in. 

Maybe that’s just us GovCon nerds, we get excited about specific contract vehicles a lot. 

That’s why we’re going to dive into these contract vehicles and make sure you understand the advantages of some of these common procurement vehicles and how to win a contract like this. That way, you don’t have to nod and pretend you understand what someone is talking about when they start to mention IDIQ contracts. 

​​IDIQ stands for Indefinite Delivery/Indefinite Quantity, and if that sounds vague, well, welcome to government procurement. But it’s actually a really exciting type of contract vehicle, depending on the type of services or goods you are hoping to provide for the federal government. These contracts give federal agencies a way to pre-approve vendors for work, making the buying process easier and faster. 

If you're a small business looking for steady work, an IDIQ government contract might be your ticket to getting a foot in the door. 

What is an IDIQ Contract?

An IDIQ contract is a type of governmentwide acquisition contract (GWAC) used by federal agencies (the Department of Defense is a big fan and issues the most contracts under this vehicle) to procure a specific quantity of supplies or services over a set period. The "indefinite" part means the exact number of goods or services isn’t locked in upfront, but the agency commits to a minimum amount while keeping the door open for more orders.

Not everything the government does has clear guidelines or definitions of work. Some tasks need to be completed, but federal agencies can’t really put a finger on how long it’s going to take or when, exactly, they’re going to need it. IDIQ contracts can be issued through General Services Administration (GSA) Schedules or from other government agencies that need flexibility in procurement. Instead of issuing a new contract for every single purchase, the government uses IDIQs to pre-approve vendors the agency can call on when they do need a service or solution, saving everyone time and paperwork. 

While individual agencies can choose IDIQ as a contract vehicle for their specific needs, many IDIQ contracts come through three popular routes:

• The GSA Multiple Award Schedule (MAS) Program: Contracts signed under this vehicle are long-term government-wide contracts from the GSA to provide products and services to government buyers. The MAS program covers the following categories: 
  
  • Facilities
  • Furniture and furnishings
  • Human capital
  • Industrial products and services
  • Information technology
  • Office management
  • Professional services
  • Scientific management and solutions
  • Security and protection
  • Transportation and logistics services
  • Travel
• OASIS+ is the largest governmentwide, multi-agency contract program for professional services, structured into six IDIQ contracts. It simplifies federal agency procurement by offering pre-built contract solutions, though it is not available to state or local governments. OASIS+ service domains include the following:
  
  • Management and Advisory: Consulting services to enhance agency performance, achieve mission goals, and improve administrative operations.
  • Technical and Engineering (T&E): Specialized engineering, geoscience, and technical expertise to address operational challenges, covering design, development, and utilization of machines, materials, and systems.
  • Research and Development (R&D): Support for basic and applied research, including experimental development across physical, life, and social sciences, nanotechnology, and biotechnology.
  • Intelligence Services (INTEL): Enhancing Command, Control, Communications, Intelligence, Surveillance, and Reconnaissance capabilities for defense and intelligence operations.
  • Environmental (ENV): Multidisciplinary expertise in environmental compliance, remediation, climate change, and ecological restoration, aiding agencies in meeting environmental objectives.
  • Facilities (FAC): Comprehensive facility management, including operations, maintenance, and infrastructure support for government properties, excluding major construction projects.
  • Logistics (LOG): End-to-end logistics solutions for transportation, supply chain management, and operational systems.
  • Enterprise Solutions: Large-scale, multi-disciplinary projects requiring broad expertise and coordination across multiple locations.
• GSA’s Alliant 3: Designed to provide federal agencies with comprehensive and flexible IT solutions. These solutions include:
  
  • Enterprise IT solutions including cloud computing, cybersecurity, and data center operations.
  • Software development, DevSecOps, and system modernization.
  • AI-driven analytics, automation, and predictive modeling.
  • Cybersecurity services like threat detection, risk management, and compliance support.
  • IT infrastructure, network management, data storage, and telecommunications.
  • Managed services and support.

IDIQs in the AEC Industry

In the architecture, engineering, and construction (AEC) industry, IDIQs are one of the most common contract vehicles agencies use. Federal agencies like the U.S. Army Corps of Engineers (USACE), Naval Facilities Engineering Systems Command (NAVFAC), and the General Services Administration (GSA) frequently issue IDIQs for engineering, construction, and environmental services. These contracts provide a streamlined way for agencies to award multiple projects under a single procurement, allowing firms to secure long-term work without having to rebid for every task.

Should You Pursue an IDIQ Contract?

Companies specializing in professional services, IT, engineering, construction, logistics, environmental services, and facilities management should strongly consider IDIQ contracts. 

But this contract vehicle, while providing flexibility, is not a free-for-all for agencies to sign with providers and then get whatever they want. Federal Acquisition Regulation (FAR) guidelines say IDIQ contracts need to have specific parameters set up, including 

• a timeframe for when orders can be placed
• a minimum and maximum quantity for the goods or services
• and a clear statement of work describing what the agency will need. 

This contract vehicle can be a game-changer for companies trying to break into the federal market. For AEC firms, IDIQs provide a way to secure recurring government work for services like environmental remediation, military base construction, and civil engineering projects. The Fed likes it because they aren’t committed to a specific timeframe or spend and can truly buy services that meet their needs. Your company can use it as a way to build long-term relationships with federal agencies while securing repeat work.

Types of IDIQ Contracts

Not all IDIQs are created equal. There are different types the government uses for streamlined acquisition processes, and knowing which type of contract fits your business can help you target the right opportunities.

Single-Award IDIQ Contracts

One contractor wins the contract and gets all the task orders in the contract period. Great if you win, not so great if you're on the outside looking in.

Multiple-Award IDIQ Contracts

Several vendors win, and they all get a shot at individual task orders. This is especially common in AEC contracting, where multiple firms are awarded a contract and compete for individual task orders related to engineering design, facility maintenance, or construction projects.

Fixed-Price Contracts

The price is locked in from the start, reducing financial risks for the government and giving contractors cost certainty. These contracts typically revolve around services or goods that have exact quantities and dollar values.

Cost-Reimbursement Contracts (Cost-Plus)

The government covers the contractor's costs plus an agreed-upon fee for a fixed period. Good for projects with unpredictable expenses.

Time and Materials Contracts

The government pays for labor hours and materials used during the period of performance. AEC firms often see this with renovation or environmental cleanup projects, where the full scope of work may evolve over time.

Benefits of an IDIQ Contract

Why should you care about indefinite quantity or indefinite-delivery contracts? Because they streamline the government purchasing process, making it easier for contracting officers to award work. Once you're on an IDIQ, you skip the long proposal cycles for every project, which means faster contract awards and more predictable work.

For AEC firms, IDIQs provide a steady pipeline of task orders for engineering, construction, and environmental services—offering predictable revenue and the ability to build stronger relationships with federal agencies over time.

For small businesses, IDIQ contracts can be a reliable revenue source, helping you build a track record with government agencies. Plus, once you prove yourself on an IDIQ, you're in a better position to win additional contracts down the road.

Need Help Finding and Winning IDIQ Contracts?

If all of this sounds great, but you're not sure where to start, Summit Strategy can help. Whether you need guidance on identifying the right IDIQ opportunities, finding IDIQ opportunities on SAM.gov, preparing a winning proposal, or navigating the contract period, we've got you covered. Contact us today and let's get you in the game!