Wyoming Business Tips for July 22

July 16, 2012

A weekly look at Wyoming business questions from the Wyoming Small Business Development Center (WSBDC), part of WyomingEntrepreneur.Biz, a collection of business assistance programs at the University of Wyoming.

By Jeffrey W. Sneddon, Wyoming Procurement Technical Assistance Center procurement specialist

“Can you please detail for me more of the use of indefinite delivery/indefinite quantity contracts in construction?” Josh, Wheatland

The use of indefinite delivery/indefinite quantity (IDIQ) contracts has been a useful tool in federal government acquisition for many years.

IDIQ contracts had historically been used only as single award contracts to procure services or supplies until two important clarifications in federal acquisitions occurred.

The first was the Federal Acquisition Streamlining Act (FASA) of 1994. FASA indicated a preference for multiple award contracts. This made clear that the contracting officer is expected to make a sound business decision as to whether single or multiple awards may be more advantageous to the government.

The second was the findings through the court system that IDIQ contracts were applicable to construction and architect-engineering services, provided the selection of contractors and placement of orders are consistent with the Federal Acquisition Regulation Part 36.

Current forms of both multiple and single award construction IDIQ contracts are available. Examples of multiple awards are multiple award construction contracts (MACC) and multiple award task order contracts (MATOC). Single awards include job order contracts (JOC) and simplified acquisition of base engineer requirements (SABER).

Multiple awards result in individual job tasks for which all awardees compete and are negotiated and priced per the specific requirement. Single awards are priced using commercial unit price books such as R.S. Means, Inc.

Additionally, multiple awards are design-build for complex projects, typically $750,000 to $5 million. Single awards involve minimum design for non-complex projects that typically range from $2,000 to $750,000.

These contacts typically involve a base year and four one-year options. This means that the contractor relationship is long term, with no need to re-solicit for five years.

Construction IDIQ contracts provide a streamlined means to complete projects with benefits for both the government agency and the commercial business.

A blog version of this article and an opportunity to post comments is available at http://www.wyomingentrepreneur.typepad.com/blog/.

The WSBDC is a partnership of the U.S. Small Business Administration, the Wyoming Business Council and the University of Wyoming. To ask a question, call 1-800-348-5194, email wsbdc@uwyo.edu or write 1000 E. University Ave., Dept. 3922, Laramie, WY, 82071-3922.

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