While VCs scour the Valley and Hill Country for their commercial, defense, and dual-use unicorns, GovCon companies are on the hunt for their own white whale: the sole source, single-award IDIQ contract with a $1B ceiling and a SOW as broad and ambiguous as the horizon. Once a company has won that first SBIR (or two, or five, or ten, depending on how long it takes for them to feel ready to venture past the gates of SBIRland), their next question usually is, “So how do I get my own IDIQ?”
First, what is an IDIQ?
If you have never seen or used DAU’s Contracting Cone, I highly recommend it. It is an excellent tool, with links to other great resources, as well as statute, regulation, and subject-matter policies. They do a great job of defining an Indefinite Delivery, Indefinite Quantity (IDIQ), which, like the vehicle, is not one definition but contains many parts.
In short, think of an IDIQ like an umbrella or parent contract where you can pre-qualify vendors, establish general terms and conditions, and set menu pricing, so that you can later place individual orders as you identify a specific need or as funding becomes available. That’s the general idea anyway, and the USG likes them once they are in place because they are flexible and fast(er than other government contracting processes).
Did you catch the caveat? “Once they are in place.” IDIQs vary widely, with different dollar ceilings, ordering periods, vendor quantities, ordering procedures, etc. In short—they can be a huge hassle to establish, and though there is no actual funding on an IDIQ—despite the phenomenal advertising around “winning” an IDIQ by some investors and companies, the ceiling is NOT money—the documentation, process, and review requirements are the same as if the ceiling amount were a funded amount, so it can take quite a while to award.
Some of the main dichotomies and definitions with IDIQs to keep in mind are:
-Competitive vs. Sole Source—This concerns how the IDIQ was originally awarded. For example, a SBIR Phase III IDIQ may have been awarded directly to one company using Phase III authority, which would make the IDIQ a sole source, single award IDIQ. Whereas larger IDIQs, like GSA’s OASIS, are competitively awarded, meaning vendors compete for the opportunity to win an OASIS contract, and then are one of many vendors on the OASIS contract once it is awarded, and will compete further for Orders placed on OASIS even after the IDIQ is in place.
-Single Award vs. Multiple Award—This is based on how many contractors are on, or are party to the IDIQ. If an IDIQ is a single-award, only one contractor is eligible for every Task Order or Delivery Order placed under the IDIQ. If it is a Multiple Award IDIQ, you might have four vendors competing for each Order, or hundreds competing for each order, based on the Order procedures outlined in the IDIQ contract rules established at the time the IDIQ was awarded.
-Centralized vs. Decentralized—This concerns how orders are placed and who is responsible for the contracting actions for orders placed on the IDIQ. Some IDIQs are local, meaning that only the original customer and contracting shop will use them. For example, the base Civil Engineering shop works with the base Contracting squadron to establish a carpet and tile IDIQ and they will be the only ones to use it for the life of the contract. For a centralized contract, or assisted acquisitions, the organization that “owns” the IDIQ will allow other customers with a requirement or need and funding to place an order and will let the contract for them, usually for a fee. This is very similar to GSA’s overall model, where they assist other organizations with acquisitions, for a percentage of the contract value. Decentralized, on the other hand, is sometimes known as BYOKO or “Bring your own Contracting Officer.” In other words, you can use the IDIQ someone else established, as long as you follow the Ordering Guide or rules of the IDIQ, but you must have your own contracting shop place the order and manage the contract once it’s awarded.
*A note on vehicle versus contract type. IDIQs are a contract vehicle. SBIR Phase III is an authority. Both SBIR Phase IIIs and IDIQs can be (or have) multiple contract types, meaning you might have a SBIR Phase III IDIQ that has a Cost Plus Fixed Fee Task Order and a Firm Fixed Price Task Order. Or, a single Task Order placed on an IDIQ might have both FFP AND CPFF CLINs. Confused? Don’t worry–I’ll write a blog post on vehicles versus contract types in the future.
Finally, back to the main question–how do I get on or get my own IDIQ?
Because of the work it takes to award an IDIQ initially, contracting offices usually want to know that there is a current need (or scope) and funding for at least an initial task order–for some agencies this is even required. Additionally, they are going to want to validate that there is a plan for future needs and an estimate and justification of future funding available. For this, you will need a government champion to sponsor both the IDIQ and the initial Task Order. This is not easy work—think of how difficult it can be to convince someone to take on the work of the extra paperwork required to be a TPOC or COR for one, single contract. You are now asking someone to take on the work of two contracts simultaneously, and the bigger the IDIQ ceiling, the more paperwork and scrutiny required.
Everything I’m describing would apply if you are looking to get your own, sole-source, single-award IDIQ, which is easiest if you have either SBIR Phase III or some other equivalent sole-source authority. In a sole-source environment, you can often lighten the load for your customer by writing as much of the documentation for them as possible, which I often refer to collectively, as a Buyer’s Guide.
A Buyer’s Guide should, at a minimum, contain:
-Information on your product or service, both in general and relative to competitors (or who the government may view as your competitors) in your market;
-Pricing information, to include structure, substantiation, and basis of estimate;
-The scope (tasks, schedule, deliverables, etc.) of both the IDIQ and the Initial Task Order; and
-How it relates to a specific Phase I or II you’ve previously completed (if using Phase III authority); AND
-Documentation on the previously cited Phase I or II; OR
-If you are not using SBIR Phase III authority, a write-up and justification of the sole-source authority you are recommending the government use; and
-Basic company business information (CAGE, UEID, certifications, POCs, etc.).
Note that while you can and should work with your customer on things like ceiling, ordering procedures, CLIN structure, etc., and should keep in mind the strategic business implications of those variables, at the end of the day, the government will make the final decision on whether or not to award an IDIQ, and you may be forced to make some sacrifices in negotiations. The good news is that you can have multiple IDIQs, and may be able to mature how many and what type of vehicles you have available over time for new business.
As I said, this is all applicable if you are trying for a sole source, single-award IDIQ, but you can also compete or partner! You should consider becoming a prime or subcontractor on one of the multiple GWACs available, obtaining your own GSA MAS, or competing for other IDIQs/BOAs or similar vehicles that can provide strategic benefits to your company.
There are many paths to an IDIQ—what are some ways that have worked for your company or your clients? Share in the comments below!
Good luck!
