Let's look at a typical IDIQ scenario:

A large IDIQ contract opportunity (sometimes worth several billion dollars) is posted at FedBizOpps. After the evaluation of proposals, a number of "pricing only" awards are announced to between three to one hundred companies and for periods ranging from three to ten years. This means that the awarding government agency agrees to each winning vendor's pricing but does not commit to future purchases. The contract with each individual contract holder is not funded until individual orders are competed among all, or among a select group, of the companies holding the contract (I call that a "mini competition"). The winner of the mini competition is then funded to perform the task order, in what could be called a mini contract.

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