Contracting Cone

IDIQ: Multiple Award

A new multiple award IDIQ contract containing the scope of products or services that can be ordered against it may be established and awarded to multiple vendors. When the need arises to place orders against the multiple award contract, all awardees holding a base contract are requested to submit a proposal to provide each contractor a fair opportunity to be considered for each order.

For DoD, GSA, and NASA: In August 2020, FAR was updated to implement Section 825 of the FY17 NDAA amending 10 U.S.C. 2305(a)(3) to modify the requirement to consider price or cost as an evaluation factor for the award of certain multiple-award task-order contracts. Section 825 provides that, at the Government’s discretion, solicitations for multiple-award contracts that will be awarded for the same or similar services AND state the Government intends to award a contract to each qualifying offeror do not require price or cost as an evaluation factor for contract award.

When price or cost is not evaluated during contract award, the contracting officer shall consider price or cost as a factor for the award of each order under the contract. See exemptions at FAR 4.1005-2(a)(2), evaluation factors and significant sub-factors at FAR 15.304(c), and ordering at FAR 16.505(b)(2)(i)(G).

This exception does not apply to solicitations for multiple-award contracts that provide for sole-source orders pursuant to 8(a) of the Small Business Act (15 U.S.C. 637(a)).

 

Common Applications
  • All types of supplies and services, to include construction
  • Defense Business Systems
  • Solutions and technologies
  • IT software and products
  • IT systems
  • Weapon systems
  • Aircraft
  • Ships
  • Space systems
  • Research and development
  • Advisory and assistance services
  • Engineering services
  • Special Studies

 

Pros

Cons

Ability to establish unique contract terms and conditions increases flexibility for all types of acquisition programs Multiple vendors increases burden on government to perform integration function
Continuous competition reduces risk for vendor lock and keeps pressure on pricing Fair opportunity requirement increases lead time to award through evaluations at the ordering level
Fair opportunity enables selection of best of breed solutions Fair opportunity orders above FAR threshold are protestable
Ability to offer agency wide ordering through an established IDIQ increases flexibility to meet various or mission needs quickly Multiple-award IDIQs increases administrative cost and contract management complexity
Ability to establish streamlined ordering procedures for future requirements provides opportunity to reduce procurement lead time Processes to establish IDIQ traditionally have long procurement lead time to award

 

Restrictions
  • IDIQ contracts are awarded using FAR Part 15 – Contracting by Negotiation procedures
  • Fair opportunity is required for all task orders and delivery orders unless one of the following 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.

 

References