Indefinite Delivery Contracts (IDCs)
Indefinite Delivery Contracts (IDCs) provide crucial flexibility in government procurement.
These contracts help agencies acquire goods and services when exact quantities or delivery timelines remain uncertain. Unlike pricing arrangements, IDCs establish delivery terms while letting individual orders set prices. FAR 16.5 governs these contracts, enabling efficient, compliant purchasing without rigid upfront commitments.
Three Key Types of IDCs
Government agencies use three main IDC types:
- Definite-Quantity Contracts – For known quantities with flexible delivery schedules.
- Requirements Contracts – When agencies must buy all necessary goods/services within a timeframe.
- IDIQ Contracts – The most adaptable option, with variable quantities and set minimums/maximums. Agencies commonly use IDIQ contracts for IT services, construction, and maintenance through task or delivery orders.
The Strategic Value of IDCs
These contracts simplify procurement by cutting administrative work and speeding up orders. They excel in long-term projects with changing needs, letting agencies adjust purchases as required. Delivery-order contracts handle goods, while task-order contracts manage services. Understanding IDCs gives procurement professionals a competitive edge.
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IDCs (FAR 16.5) help agencies secure goods/services efficiently without locking in rigid terms upfront. Whether it’s delivery-order contracts (goods) or task-order contracts (services), IDIQs offer adaptability in federal procurement.
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