XL EagleIDIQ (Indefinite Delivery, Indefinite Quantity)
IDIQ stands for Indefinite Delivery, Indefinite Quantity. An IDIQ contract does not buy a set amount of work up front. It sets the rules, prices or rate ranges, a guaranteed minimum, and a maximum over a time period. The government then places task orders for services or delivery orders for goods as needs come up.
The minimum must be more than a token amount, and once it is ordered the government owes nothing more. An IDIQ can go to one company (single-award) or several (multiple-award). Winning an IDIQ is a license to compete for or receive orders, not a promise of big money.
Why it matters to a small contractor
A large ceiling on an IDIQ can look exciting, but only orders bring revenue. Teaming with a prime who already holds the IDIQ is often the fastest way for a small trade to get into that work.
Example
A county-wide facility repair IDIQ has a $5,000 minimum and a $10,000,000 ceiling over five years. The winner gets the minimum guaranteed, then $600,000 in orders the first year.
IDIQ: common questions
Is the ceiling what I will earn?
No. The ceiling is the most the government can order. Many IDIQs end far below their ceiling.
How do I get work on an IDIQ I do not hold?
Partner with a holder as a subcontractor, or wait for the next competition or on-ramp.
Want the contract without the paperwork? Send XL Eagle your price on an open government job. We write and submit the bid under our registrations, free to you. Find open jobs →