This newsletter is the first in a series of five newsletters about the federal government's increasing reliance on multiple award contracts.

The use of Indefinite Delivery, Indefinite Quantity (IDIQ) contracts is becoming more prevalent by the day. These types of contracts are often used when the federal purchasing official cannot pin down the quantity of products or services that will be needed over the life of the contract, IDIQ contract ceilings now exceed $30 billion and individual task orders under IDIQs commonly exceed $1 billion. These contracts are used by federal government officials to purchase almost any type of good or service needed. They are particularly popular when information technology products and services, architectural & engineering services, and construction services are involved. 

Government procurement experts are predicting that 2011 will be the year of the IDIQ contract. For example, they estimate that DHS will use its own IDIQ, Eagle II, for 40% or more of all its information technology work. The reality is that contractors will find it extremely difficult to compete for DHS business without an Eagle II contract.  

A company doesn't win any actual business once it is awarded an IDIQ.  Instead, your competitors that don't hold the contract in question are weeded out.  Winning a task order and then leveraging your inside position is the key and superior performance coupled with aggressive sales can result in big revenue numbers.

The next newsletter will discuss the federal gobbledygook surrounding IDIQ contracts.

Regards,
Richard White
President
Fedmarket
rwhite@thefederalmarketplace.com
301 908 0546 (cell)

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