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Indefinite delivery/indefinite quantity contract

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Definition Edit

An indefinite delivery/indefinite quantity (IDIQ) contract is used when the customer anticipates recurring needs but cannot specify the quantity needed.[1]

Overview Edit

However, an ID/IQ contract does not entitle the vendor to fill all the procuring activity’s requirements for certain goods or services. Rather, the vendor is assured of orders for only the “minimum quantity” of goods or services specified in the contract.[2]

References Edit

  1. 48 C.F.R. §16.504(b).
  2. See, e.g., 48 C.F.R. § 16.504(a)(1); Peter J. Brandon, AGBCA 91-186-1, 92-1 BCA ¶24,648 (1991). Provided the minimum quantity is ordered, the customer is not liable for ordering similar goods and services from other vendors; failing to order any estimated quantities, even if those estimates were negligently prepared; or any costs that the vendor incurs due to lack of orders. See, e.g., Bliss Co. v. United States, 74 Ct. Cl. 14 (1932) (government not liable for losses due to the contractor’s plant being idled for lack of orders); Crown Laundry & Dry Cleaners, ASBCA 39982, 90-3 BCA ¶22,993 (1990) (“[W]e do not examine the reasonableness of the estimates in indefinite quantity contracts.”); Alta Constr. Co., PSCBA 1395, 87-2 BCA ¶19,720 (1987) (government’s awarding work orders to a competitor of the contractor does not give rise to a breach of contract claim). An ID/IQ contract may also contain a maximum quantity, orders in excess of which the vendor generally need not fill. 48 C.F.R. §16.504(a)(3).

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