FAR Based Strategies
Indefinite Delivery Indefinite Quantity (IDIQ) Contracts (FAR Subpart 16.5)
IDIQ contracts provide a method to order from existing agency indefinite-delivery contracts as well as contracts awarded by another agency (i.e. Government-wide Acquisition Contracts (GWACs) and Multi-Agency Contracts (MACs)).
Existing IDIQ contracts should be considered prior to establishing a new agency specific single or multiple award IDIQ vehicle. IDIQ ordering procedures are described at FAR 16.505 and DFARS 216.505. See the Interagency Contract Directory (ICD) to explore existing indefinite-delivery intra/inter agency contract vehicles – including GWACs, MACs, FSS, BOAs, and BPAs.
Establishing an agency unique IDIQ contract may be an appropriate business decision to support a portfolio of programs when recurring needs are anticipated. New IDIQ contracts can be single or multiple award:
Government-wide Acquisition Contracts (GWACs)
GWACs are established pursuant to the Clinger Cohen Act. A Government-wide Acquisition Contract (GWAC) is a task-order or delivery-order contract contract for information technology established by one agency for Government-wide use that is operated:
- By an executive agent designated by the Office of Management and Budget pursuant to 40 U.S.C. §11302(e), or
- Under a delegation of procurement authority issued by the General Services Administration (GSA). The Economy Act does not apply to orders placed under GWACs.
Currently, GWACs are administered by the General Services Administration (GSA), the National Aeronautics and Space Agency (NASA), and the National Institutes of Heath Information Technology Acquisition and Assessment Center (NITAAC).
Multi-Agency Contracts (MACs)
A Multi-Agency Contract (MAC) is a task-order or delivery-order contract established by one agency for use by Government agencies to obtain supplies and services, consistent with the Economy Act. MACs include contracts for information technology established pursuant to 40 U.S.C. §11314(a)(2).
The Economy Act is applicable to orders placed under MACs, with the exception of MACs for information technology that are established pursuant to the Clinger-Cohen Act. The Economy Act applies when more specific statutory authority does not exist. Examples of more specific authority are 40 U.S.C. §501 for the Federal Supply Schedules (FSS), and 40 U.S.C §11302(e) for GWACs.
GWACs and MACs (and FSS) are forms of Interagency Acquisitions described in FAR Subpart 17.5.
- All types of supplies and services, to include construction
- Defense Business Systems
- Solutions and technologies
- IT software and products
- IT systems
- Weapon systems
- Space systems
- Research and development
- Advisory and assistance services
- Engineering services
- Special studies
|Access to pre-negotiated prices and labor rates reduces procurement lead time and provides opportunity for further negotiated price discounts||Conditions and scope limitations (work scope, ceiling, and period of performance) imposed on GWAC/MAC contract vehicle may reduce flexibility in acquiring products and services|
|Ability to use variety of pricing arrangements within scope of MAC/GWAC contract vehicle increases opportunity to deliver products and services quickly||Fair Opportunity order above FAR threshold is protestable|
|Wide latitude to streamline or create evaluation process reduces procurement lead time|
|Streamlined ordering procedures within existing GWAC/MAC contract vehicle reduces lead time to award|
|Access to pre-vetted, qualified contractors reduces performance risk in execution|
- Scope determination required (work, period of performance, and ceiling)
- Fair opportunity required for a delivery-order or task-order exceeding micro-purchase threshold unless one of the following statutory exceptions applies:
- The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.
- Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.
- The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.
- It is necessary to place an order to satisfy a minimum guarantee.
- For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source.
- In accordance with section 1331 of Public Law 111-240 (15 U.S.C. 644(r)), contracting officers may, at their discretion, set aside orders for any of the small business concerns identified in FAR 19.000(a)(3). When setting aside orders for small business concerns, the specific small business program eligibility requirements identified in FAR Part 19 apply.
- Micro-purchase Threshold
- FAR Subpart 16.5 Indefinite-Delivery Contracts
- FAR 16.505 Ordering
- FAR Subpart 17.5 Interagency Acquisitions
- FAR 17.502-2 The Economy Act
- FAR Part 19 Small Business Programs
- DFARS Subpart 216.5 Indefinite-Delivery Contracts
- GAO Report 18-412R: Use by the DoD of Indefinite-Delivery Contracts from Fiscal Years 2015-2017, Government Accountability Office
- Interagency Contract Directory (ICD), General Services Administration
- GSA GWACs, General Services Administration
- NASA SEWP GWAC, National Aeronatutics and Space Agency
- NITAAC GWACs, National Institutes of Health Information Technology Acquisition and Assessment Center
- GSA Oasis and Oasis Small Business MAC, General Services Administration
- DoD Information Analysis Center (IAC) MAC, Defense Technical Information Center