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Contract Type Matrix

IDIQ — Single Award
FAR 16.504 / FAR 16.504-3

A single-award indefinite-delivery/indefinite-quantity contract may be established when the Government knows the general type of supplies or services it needs and expects ongoing, repeated requirements, but does not know the exact quantity or timing of future orders. The base IDIQ contract establishes the general scope, ordering period, minimum and maximum quantities or dollar values, ordering procedures, and applicable terms and conditions. Individual requirements are funded and ordered through task orders or delivery orders issued under the contract.

RFO FAR 16.504-3 establishes a preference for making multiple awards of indefinite-quantity contracts to the maximum extent practicable. A single-award IDIQ may still be appropriate when multiple awards are not in the Government’s best interest, such as when only one contractor is capable, more favorable terms or pricing are expected from a single award, the administrative cost of multiple awards outweighs the benefits, the projected orders are integrally related, or the total estimated value is at or below the SAT.

 

Common Applications
  • Supplies and services, including construction when appropriate
  • Defense business systems
  • Mission solutions and technologies
  • IT software, products, systems, and services
  • Weapon systems
  • Aircraft, ships, and space systems
  • Research and development
  • Advisory and assistance services
  • Engineering services
  • Special studies
  • Recurring requirements where a single integrated contractor approach is appropriate

 

Pros

Cons
Establishes a single contract vehicle for recurring needs, reducing lead time at the ordering level. Award to one vendor can increase vendor lock-in and reduce future competitive pressure.
Can support integrated performance when task or delivery orders are closely related. Performance problems with the single contractor may create cost, schedule, or mission risk.
Allows the agency to establish ordering terms, pricing methods, and contract scope up front. Establishing the IDIQ may require significant acquisition planning and lead time.
May provide more favorable terms, conditions, or pricing when a single-award approach is justified. The agency must document why multiple awards are not in the Government’s best interest.
Can support agency-wide ordering when the contract is properly scoped and structured. Orders must remain within the scope, ceiling, ordering period, and terms of the base contract.

Restrictions
  • RFO FAR 16.504-3 expresses a preference for multiple awards of indefinite-quantity contracts to the maximum extent practicable.
  • The contracting officer must document the decision whether to make multiple awards in the acquisition plan or contract file.
  • A task-order or delivery-order contract estimated to exceed $150 million, including all options, may not be awarded to a single source unless the head of the agency makes the required written determination.
  • The required determination may be based on one of the following:
    the expected orders are so integrally related that only a single source can reasonably perform the work; the contract provides only for firm-fixed-price task or delivery orders for products with established unit prices or services with established prices for the specific tasks to be performed; only one source is qualified and capable of performing the work at a reasonable price; or
    award to a single source is necessary in the public interest due to exceptional circumstances.
  • If the public-interest exception is used, the head of the agency must notify Congress within 30 days.
  • The single-award determination requirement is in addition to any applicable FAR Part 6 requirements and does not apply to architect-engineer services awarded under FAR Part 36.

 

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