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Much of the Department of Defense (DOD) spending is on service contracts through task orders issued under multipleaward contracts, allowing for a streamlined, flexible acquisition process.1 This primer discusses the fundamentals of multiple award indefinite delivery/indefinite quantity (ID/IQ) contracting and current problems associated with the multiple award ID/IQ system. The article focuses specifically on problems in the area of competition, including the lack of fair opportunity to compete, out of scope orders, lack of adequate supervision, and other miscellaneous problems with the multiple award ID/IQ system. The first section discusses the basic terminology and legal requirements of the multiple award ID/IQ system. The second section deals with additional legal requirements resulting from congressional modifications designed to strengthen and encourage competition within the multiple award system. The third section outlines problems in multiple award ID/IQ contracting. Multiple award ID/IQ contracting has become an increasingly important focus area for the U.S. Army and is a challenging area for acquisition professionals.2
I. Definitions
Multiple award ID/IQ contracts (also called "task and delivery order contracts"3) are open-ended contracts. Instead of creating a contract for a definite amount of goods or services, the government announces that it will have certain needs in the future. Contractors respond with information regarding their ability to meet those needs. Thereafter, the government awards several contractors the opportunity to sell those goods and services to the government in the future. When the contract is created, the government agency does not have to order any goods or services immediately. Rather, the agency can place orders as the agency's needs arise.
A. Task and Delivery Orders
Task and delivery order contracts are contracts for either services (task) or for supplies (delivery) that do not specify a firm quantity.4 The Federal Acquisition Regulation (FAR)5 defines "task order contract"6 and "delivery order contract"7 in subpart 16.5.8 Task and delivery order contracts can take the form of either requirements contracts or indefinite quantity contracts.9 Once the government awards an ID/IQ contract, the contracting officer can place orders in varying amounts and at varying times without additional procurement notices and without "full and open"10 competition.11 The government, however, must give each awardee or contractor a "fair opportunity to be considered" 12 for each order unless an exception applies. Subpart 16.505(b)(2)...