An Indefinite Delivery Vehicle (“IDV”) Contract is a type of federal contract that provides an agreement between the government and a contractor for the delivery of an unspecified quantity of goods or services over time, typically several years. IDVs offer flexibility to both the government and the contractor by establishing a framework for future orders without specifying the exact quantity, timing, or scope of work at the time of award.

An IDV contract is a flexible agreement that allows for the delivery of an unspecified quantity of goods or services over a period of time. They allow the government to streamline the procurement process, and unlike traditional contracts that outline specific quantities and delivery schedules, IDV contracts establish a framework for future orders without setting precise details in advance.

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Type of IDV Contracts:

Indefinite Delivery/Indefinite Quantity (“IDIQ”) Contracts: IDIQ contracts provide a flexible arrangement for the procurement of an undefined quantity of goods or services within a specified period. These contracts typically include a guaranteed minimum order and may have a maximum order limit.

Blanket Purchase Agreements (“BPA”): BPAs are used to streamline the procurement process for recurring needs. They allow government agencies to establish an account with a contractor, which can be used to place orders for goods or services on an as-needed basis.

Government-Wide Acquisition Contracts (“GWAC”): GWACs are pre-competed, multiple-award IDV contracts that allow federal agencies to buy a wide range of IT products and services from approved vendors.

In most standard types of contracts, the government requires exact quantities and delivery times. However, there are times the federal government decides to buy products or services when it doesn’t know the exact quantity or period of time the products or services are needed. This is the benefit of the flexibility of an IDV contract.

IDV are often multiple-award contracts and have become quite popular in recent years. Using an IDV contract can allow the government to preselect several possible vendors and then request that small groups of vendors bid against one another to complete each separate task order.

Benefits of IDVs for Businesses:

Long-term Relationships: IDV contracts often span several years, allowing businesses to establish long-term relationships with government agencies and secure a steady stream of work.

Simplified Procurement: Once awarded an IDV contract, businesses experience simplified procurement procedures. Agencies can issue orders without having to engage in a lengthy solicitation process, reducing administrative burdens for both parties.

Increased Flexibility: IDV contracts offer flexibility in meeting changing demands. As a business, you can adapt to evolving requirements and deliver goods or services as needed, providing a competitive edge.

Access to a Wide Range of Opportunities: IDV contracts are used by multiple government agencies, providing access to a broad range of potential opportunities. By securing an IDV contract, you open doors to various agencies and their specific needs.

Subcontracting Opportunities: Prime contractors often turn to small businesses to help fulfill the requirements of the contract. Subcontracting is a good way for small businesses to get their start in government contracting.

Securing an IDV contract requires proactive effort:

Research: Identify agencies that align with your business capabilities and review their procurement forecasts and RFI’s, which outline upcoming opportunities. To discover and target suitable government contracting opportunities that align with your business’s offerings—a database like Market Intel provides specific information on who is buying what you sell.

Connect to Buyers: Actively market your business to contracting officials in the agencies you identify with pre-solicitation, open solicitation, and expiring contract award opportunities you can fulfill. Reaching out to the right agency offices to connect to buyers takes proactive marketing.

Bid Preparation: Once identified, the next step is to prepare and submit a bid. Bidding on government contracts can be a complex process, requiring a detailed understanding of the requirements and a well-articulated plan for how your business will fulfill the contract. Having expert guidance and coaching can make a substantial difference in proposal preparation and pricing.

Indefinite Delivery Vehicle (IDV) contracts can be a game-changer for businesses venturing into government contracting. By understanding the benefits and how to navigate the process, you can position your business for success. With a long-term commitment from government agencies, simplified procurement procedures, and access to a broad range of opportunities, IDV contracts can provide a solid foundation for growth and sustainability in the competitive world of government contracting.

FedBiz Access (“FedBiz”) has an experienced team that works with small businesses and takes the time to get to know your business and ask questions to ensure you have a solid contracting plan. FedBiz is a leading government contracting business development and marketing firm that provides engagement strategy coaching, SAM & DSBS registration, set-aside certification registrations, GSA Schedules, and targeted market research.

FedBiz has over 22 years of experience working with thousands of companies worldwide to help them win over $35.7 billion in awards. From registration to award, FedBiz helps businesses succeed in the government marketplace.

Your Government Registration Level (“GRL”) is your roadmap from registration to award.

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