April 10th, 2009

Federal agencies using IDIQ delivery method to speed projects

Driven to speed projects to market, federal agencies are using accelerated delivery methods to move stimulus-funded work into the express lane, according to ENR.

Most federal agencies have drawn up long lists of small to medium-sized projects that are prime for design and construction firms that already have indefinite-delivery/indefinite-quantity (IDIQ) contracts with the government.

IDIQ is a federal procurement method for a range of architecture, engineering and contracting services. Unlike a stand-alone contract for a single project, an IDIQ approach allows the contract holder to perform specific services within the limits of the contract, which include the location where the tasks can be performed and a limit on the total value of work that can be awarded within a specific contract period.

Agencies often use these contracts for easily defined, low-risk projects that they need to mobilize quickly. Contract holders are essentially pre-approved to execute the task.

Although some in the industry are concerned this may limit competitiveness, agencies vow there are many opportunities ahead. The stimulus law is providing such unprecedented levels of funding that it will push existing IDIQ capacity to the limit. The US Forest Service and the Department of Defense both expect to exceed their IDIQ capacities. DOD won’t increase limits on existing IDIQ contracts and expects to advertise for new IDIQ contracts.

Source: ENR

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