Indefinite Delivery–Indefinite Quantity Contracting

Abstract

Indefinite delivery–indefinite quantity (IDIQ) contracts permit a transportation agency to award multiple job orders to a single contractor or a small group of competing contractors; this method eliminates the need to conduct a full procurement for every small construction or maintenance project. During the past few years, this procurement method has been increasingly accepted by state and municipal agencies. However, little research has been conducted to provide guidance on this powerful procurement tool. On the basis of a detailed case study analysis, this paper discusses four models for IDIQ contracting in use by three state departments of transportation and FHWA's Central Federal Lands Highway Division, Lakewood, Colorado. The analysis revealed that, regardless of the model in use, agency IDIQ project managers believed that the method accelerated the project delivery period, reduced preconstruction costs, and provided for flexible delivery scheduling. The use of multiple-award IDIQ contracts was also found to promote price competition and reduce the risk of contractor default.

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