Source & Authority Information
- •FAR Part 16 - Types of Contracts(accessed 2026-01-15)
- •FAR Subpart 16.5 - Indefinite-Delivery Contracts(accessed 2026-01-15)
Understanding IDIQ Contract Structure
- Ceiling value: Maximum total orders allowed during contract period
- Minimum guarantee: Small guaranteed amount, often just first task order
- Base period: Initial contract term, typically one year
- Option periods: Additional years the government may exercise
- Contract access fee: Some contracts charge annual fees for contract maintenance
- Task order: Individual work orders competed among contract holders
Types of IDIQ Contracts
Winning an IDIQ Prime Position
- 1Assess Strategic Fit
Evaluate whether the IDIQ aligns with your capabilities, target customers, and business strategy. Review historical task orders on existing versions of the contract. Determine whether you can compete effectively for the types of work typically ordered.
- 2Build Capture Intelligence
Research the procurement thoroughly before proposal development. Understand evaluation criteria, competitive landscape, and customer priorities. Engage with the agency during market research phases. Position your company through targeted business development.
- 3Develop Technical Approach
Create a compelling technical approach demonstrating capability across the contract scope. Address key technical areas with specific methodologies and tools. Show how your approach delivers value across diverse task order requirements.
- 4Compile Past Performance
Select past performance demonstrating success on similar work across the contracts scope. Choose recent, relevant contracts with strong performance ratings. Prepare references who will provide positive feedback on demand.
- 5Price Competitively
Develop pricing that is competitive for task order competitions while maintaining profitability. Consider that IDIQ pricing establishes rate ceilings for task orders. Price to win task orders, not just the prime contract.
Task Order Competition Strategies
Fair Opportunity and Competition Requirements
Pricing Strategies for IDIQs
Managing IDIQ Contract Performance
- Opportunity monitoring: Track all task order solicitations and position for priorities
- Relationship management: Build relationships with ordering contracting officers
- Staffing readiness: Maintain qualified candidate pipelines for rapid mobilization
- Compliance tracking: Monitor reporting requirements and submission deadlines
- Option planning: Prepare for option exercises and potential contract recompetition
- Performance excellence: Deliver outstanding task order performance to build reputation
