What is the definition of an "indefinite delivery, indefinite quantity" (IDIQ) contract?

An "indefinite delivery, indefinite quantity" (IDIQ) contract is defined as one that provides for an indefinite quantity of supplies or services during a fixed period. This type of contract is particularly useful for situations where the exact quantity of supplies or services required cannot be determined at the time of contract award. The IDIQ structure allows for flexibility and responsiveness to varying requirements, as the government or ordering agency can place task or delivery orders for a specific amount of goods or services as the need arises, without committing to a fixed quantity upfront.

This contracting method is advantageous for both the buyer and the seller. It ensures that the buyer can obtain essential services or supplies as needed while providing a reliable stream of work for the contractor over a specified duration. By establishing a minimum and/or maximum quantity needed, IDIQ contracts help manage uncertainties in demand while fostering ongoing partnerships with contractors.