How IDIQ Contracts Work
An IDIQ contract is an umbrella agreement that establishes the terms, labor categories, rates, and scope of services that a contractor can provide. But the actual work is ordered later through individual task orders (for services) or delivery orders (for products). Think of it as a hunting license — the IDIQ gives you permission to compete for work, but you still have to win each order.
The IDIQ itself specifies a minimum guaranteed amount (often as low as $500) and a maximum ceiling that can range from millions to billions of dollars. The government is only obligated to order the minimum amount, and there’s no guarantee of any particular volume beyond that. Your actual revenue depends entirely on winning individual task orders.
IDIQs typically run for a base period of 5 years with option periods extending to 10-15 years total. This long duration makes them extremely valuable vehicles for building a federal practice, as each recompetition is costly and risky.
Single-Award vs. Multiple-Award IDIQs
A single-award IDIQ goes to one contractor, who receives all task orders without further competition. These are less common but extremely lucrative when awarded. A multiple-award IDIQ (MA-IDIQ) goes to several qualified contractors (sometimes hundreds), who then compete against each other for individual task orders under the vehicle.
For MA-IDIQs, winning the contract is just the first step. Each task order solicitation goes out only to the pool of IDIQ holders, so competition is limited compared to full-and-open procurements. But you’re competing against other pre-qualified firms, so the competition that does exist is high quality.
Government-wide Acquisition Contracts (GWACs) like OASIS, Alliant 3, and SEWP VI are major MA-IDIQs available to all federal agencies. Agency-specific IDIQs (like a particular agency’s IT support vehicle) are only available to that agency but often have smaller pools and less competition.
How Task Order Competition Works
When an agency needs work performed under an IDIQ, they issue a task order Request for Proposal (RFP) to the contract holders. The scope, evaluation criteria, and proposal requirements vary by task order — some are simple best-value competitions, while others are as complex as standalone solicitations.
Fair Opportunity rules require the agency to give all contract holders a chance to compete for task orders above $4,500 (with some exceptions). However, agencies can limit competition to contractors they believe are most capable, and some task orders are awarded on a sole-source basis under the vehicle.
Winning task orders requires the same skills as winning standalone contracts: understanding the requirement, demonstrating technical capability, providing relevant past performance, and pricing competitively. The advantage is that you’re competing against a smaller, pre-qualified pool.
Major Government-Wide IDIQs
Several IDIQs generate tens of billions in annual task order volume and are strategic assets for any contractor fortunate enough to hold a position on them.
- OASIS+ (GSA) — Professional services, $60B ceiling, government-wide
- Alliant 3 (GSA) — IT services and solutions, government-wide
- SEWP VI (NASA) — IT products and product-based services, government-wide
- CIO-SP4 (NIH) — IT services for health and biomedical focus
- 8(a) STARS III (GSA) — IT services set aside for 8(a) firms
- VETS 2 (VA) — IT services set aside for SDVOSBs
Building an IDIQ Strategy
IDIQs are central to federal procurement, especially for IT and professional services. A deliberate strategy for pursuing and winning IDIQ positions, followed by active task order competition, is essential for sustained growth in the federal market.
Start by identifying which IDIQs your competitors hold and which vehicles the agencies you target use most frequently. When recompetitions are announced, invest the resources to submit a competitive proposal. The payoff from a well-positioned IDIQ can sustain your business for a decade.