1. Contracting Officer Podcast Slides Knowledge & Insights From Contracting Officers 1

2. Episode 066 What is an IDIQ Contract? Original Air Date: Feb 14, 2016 Hosts: Kevin Jans & Paul Schauer 2

3. Formatting notes Hyperlinks: Blue font indicates hyperlinks – presentation must be in ‘Slide Show’ mode to activate the linkBlue Red bold font indicates a point of emphasis Green bold font indicates CO’s personal comment or perspective 3

4. Introduction IDIQ contracts are a specific type of contract that are often misunderstood… or partially misunderstood enough that problems arise This episode explains IDIQs, and helps resolve the confusion and ambiguity surrounding IDIQs, so that everyone understands their flexibility, value and utility as a contract vehicle 4

5. When do IDIQ contracts happen? Acquisition Time Zones (from Podcast Episode 003)Episode 003 Requirements Zone Market Research Zone RFP Zone Source Selection Zone (or sole source) Execution Zones: Kick Off, Transition (Ramp Up), Performance, Re-compete 5

6. FAR 16.504 Indefinite Delivery, Indefinite Quantity (IDIQ) Flexible contract type Used when it is “inadvisable to commit” for more than a minimum quantity CO should only use IDIQ when there is a recurring need (FAR 16.504(b))(FAR 16.504(b)) Like bumpers on a bowling alley 6

7. FAR 16.504 – IDIQ Has a minimum requirement and a stated maximum Set by Contracting Officer in coordination with customer This is ‘art AND science’ Quantity is set at minimum and maximum For a fixed time period (may have options) Delivery is “sometime” between start and finish Two types: Single award Multiple award 7

8. Multiple Award Contracts CO must (as practicable) use a multiple award IDIQ (under the same solicitation) Unless Advisory & Assistance Services (AAS) And there are some exceptions to this CO must determine if multiple awards are appropriate during acquisition planning Must avoid an awardee with specialization in one/few area(s) that: Has an obvious advantage over other awardees, and Will result in them getting most or all of the awards 8

9. Multiple Award Task Order Contracts (MATOCs) RFP must explain procedures and selection criteria that the Government will use to provide awardees a fair opportunity to be considered for each order (see 16.505(b)(1))(see 16.505(b)(1)) There are exceptions Must be justified in writing Approval by varying levels of authority, based on dollar amount (up to the senior procurement executive of the agency) 9

10. Factors to consider in a Multiple Award Contract The scope and complexity of the requirement The expected duration and frequency of task or delivery orders The mix of resources a contractor must have to perform expected task or delivery order requirements The ability to maintain competition among the awardees throughout the contract’s period of performance 10

11. When not to use a Multiple Award IDIQ FAR 16.504(c)(ii)(B) The contracting officer must not use the multiple award approach if--FAR 16.504(c)(ii)(B) (1) Only one contractor is capable of providing performance because it’s unique or highly specialized (2) Based on the CO's knowledge of the market, more favorable terms and conditions, including pricing, will be provided through a single award (3) The expected cost of administration of multiple contracts outweighs the expected benefits (like under Simplified Acq Procedures) (4) Projected awards so integrally related that only one contractor can perform (5) Total estimated contract value is less than Simplified Acq Threshold (SAT) (6) Multiple awards would not be in the best interests of the Government 11

12. Here is a fun rule: FAR 16.504(c)(ii)(D)(1) FAR 16.504(c)(ii)(D)(1) No task or delivery order contract in an amount estimated to exceed $112 million (including all options) may be awarded to a single source unless the head of the agency determines in writing that— (i) The task or delivery orders expected under the contract are so integrally related that only a single source can reasonably perform the work; (ii) The contract provides only for firm fixed price; (iii) Only one source is qualified and capable of performing the work at a reasonable price to the Government; or (iv) It is necessary in the public interest (we love this one) 12

13. Why IDIQs are important IDIQs are sometimes easier than other contract types After award, can be routine process – smooth, repetitive IDIQs are sometimes harder than other contract types During Source Selection, determining best awardees During performance, competing every Task Order Dealing with multiple contractors MANY contracts are IDIQ, so you need to understand them Increasing numbers are Multiple Award – get used to the trend 13

14. Why Should Government Care? Maximum flexibility Limits competition (after contract award) Ease of ordering – you can get it faster Be sure to understand what it can do to a company’s cash flow CO – if you don’t understand how IDIQ works, you could create problems One example: A particular vendor almost went out of business because they confused “options” with “orders” CO must know the contract, and must be able to help the contractor understand the contract 14

15. Why Should Industry Care? It makes it easy to buy from you Maximum flexibility can hurt you Most Contracting Officers love IDIQs Good way to expend ‘year-end money’ CO and all awardees (competitors) get to know each other pretty well As a coach to our clients, SOMETIMES we love IDIQs Contractor – not understanding can result in over- or undershooting Create flexible supply chains and relationships 15

16. Summary Government team: Be sure multiple award makes sense Be sure it IS the easiest way Resist the temptation to mash them together Industry team: Not a ”C” contract: only the minimum is guaranteed - Know the difference Create flexible supply chains if you have IDIQ contracts (or want them) Build the relationship to use them more… 16

17. Contact us We are on LinkedIn, Twitter and FacebookLinkedInTwitterFacebook We also started the Government Contracting Network Group on Facebook. Join us there! Send your topics to paul@Contractingofficerpodcast.compaul@Contractingofficerpodcast.com For Community support, contact Shelley Hall at shelley.hall@skywayacquisition.com shelley.hall@skywayacquisition.com 17