FAR 16.5 governs indefinite-delivery contracts, prefers multiple-award IDIQs, and requires stated minimums, maximums, and order procedures.
Summary
What Does FAR 16.5 Require for IDIQ Contracts? FAR 16.5 governs indefinite-delivery contracts, prefers multiple-award IDIQs, and requires stated minimums, maximums, and order procedures.
FAR Subpart 16.5 covers indefinite-delivery contracts and says agencies should prefer multiple awards of indefinite-quantity contracts. It defines delivery-order contracts as supply contracts without a firm quantity and task-order contracts as service contracts without a firm quantity, both using orders during the contract period. The subpart also recognizes three indefinite-delivery contract types: definite-quantity, requirements, and indefinite-quantity. FAR 16.504 says an indefinite-quantity contract covers an indefinite quantity within stated limits, must require at least a stated minimum that is more than nominal, and may not obligate the Government beyond the stated maximum. The solicitation and contract must state the period, minimum and maximum quantities, scope, ordering procedures, selection criteria for multiple awards, authorized ordering activities, and oral-order authorization if used. The multiple-award preference applies to the maximum extent practicable, except for advisory and assistance services, and the subpart preserves GSA schedule authority and the architect-engineer rules in subpart 36.6. Source 1 also notes a separate determination rule for certain requirements contracts over $150 million awarded to a single source.
Choose definite-quantity, requirements, or indefinite-quantity based on whether future quantities and timing are known.
Include the contract period, options, stated minimum and maximum quantities, scope, and the ordering procedures the Government will use.
If multiple awards are contemplated, include the fair-opportunity procedures and selection criteria for orders.
Confirm whether GSA schedule coverage, architect-engineer rules, or small-business procedures change the approach.
FAR Subpart 16.5 does not displace GSA schedule authority, and its multiple-award preference does not apply to architect-engineer contracts subject to subpart 36.6. The subpart also points users to subpart 19.5 for small-business set-aside and reserve procedures on multiple-award contracts.