IDIQ Contracts Explained (and the Other Contract Types You'll See)

An IDIQ contract (indefinite delivery, indefinite quantity) is a federal contract that sets the terms, a time period and a minimum and maximum amount up front, then lets the agency buy what it needs through separate orders. Only the minimum is guaranteed. Orders for services are called task orders and orders for supplies are delivery orders, and on a multiple-award IDIQ, the contract holders generally compete again for each order.

What is an IDIQ contract?

The FAR says an IDIQ provides "for an indefinite quantity, within stated limits, of supplies or services during a fixed period." In plain terms, the agency runs one competition, awards the contract, and then orders from it as needs come up. The FAR also calls these task-order or delivery-order contracts.

Every IDIQ solicitation must state:

• The ordering period, including any options.
• The minimum. It "must be more than a nominal quantity, but it should not exceed the amount that the Government is fairly certain to order."
• The maximum, set from market research, buying trends and similar data.
• The scope, the ordering procedures, who may place orders, and whether oral orders are allowed.

Each order must fall within the contract's scope, be placed during the ordering period, and stay within the maximum. For a real example, GSA's Multiple Award Schedule is an IDIQ that generally guarantees $2,500 per contract. See what a GSA Schedule is.

Where the rules live: the FAR is mid-overhaul, so section numbers depend on the version. The codified FAR covers IDIQs in 16.504 and ordering in 16.505. The FAR overhaul text most agencies now use splits them into 16.504-1 to 16.504-5 (the contract), 16.506 (placing orders), 16.507 (fair opportunity) and 16.508 (protests). A rule proposed on September 18, 2026 would renumber them again.

Task orders vs. delivery orders

Both FAR texts define them the same way. The glossary has more on task orders.

Only the minimum is guaranteed

Winning an IDIQ gives you the right to compete for orders, and the agency must order at least the minimum from you. It doesn't mean the maximum, or anything close, will come your way. Treat the maximum as a ceiling, not a revenue forecast.

Single-award vs. multiple-award IDIQ contracts

A single-award IDIQ has one holder, and the agency orders straight from it. A multiple-award IDIQ has several holders under the same solicitation, and they compete for orders.

The FAR leans hard toward multiple awards. The contracting officer "must, to the maximum extent practicable, give preference to making multiple awards" (codified 16.504(c)(1)(i); FAR overhaul text 16.504-3(a)(1)). Big single awards are restricted too. An IDIQ "estimated to exceed $150 million (including all options)" can't go to a single source unless the head of the agency determines in writing that an exception applies. That line was $100 million before October 1, 2025.

How fair opportunity works

On a multiple-award IDIQ, "the contracting officer must provide each awardee a fair opportunity to be considered for each order exceeding the micro-purchase threshold" (codified FAR 16.505(b)(1)(i)). That threshold is $15,000 for most buys. The FAR overhaul text also applies this to BPAs set up under these contracts. What the contracting officer must do depends on the order's value:

The $7.5 million tier was $6 million before October 1, 2025. The codified FAR covers this in 16.505; the FAR overhaul text moved it to 16.507.

Exceptions. The contracting officer can skip fair opportunity when:

• the need is urgent;
• only one holder can do the work, because it's "unique or highly specialized";
• the order is a "logical follow-on" to an order that was already competed;
• the order is needed "to satisfy a minimum guarantee";
• a statute calls for a specific source (for orders above $350,000); or
• for DoD, NASA and the Coast Guard, one of the exceptions to full and open competition in FAR Part 6 applies.

The codified FAR also lists small business set-aside orders as an exception. The FAR overhaul text handles those in its small business part instead.

Types of IDIQ vehicles: agency IDIQs, MATOCs and GWACs

An IDIQ is one kind of contract vehicle. You'll see three broad groups.

Agency IDIQs, MATOCs and MACCs

Many IDIQs belong to one agency or office. SAM.gov notices on September 26, 2026 included "Airfield Civil Works IDIQ" (DoD, small business set-aside), "New Fort Bliss Paving IDIQ Contract" (8(a)) and "IDIQ contract for assorted compressed gases and cylinders" (USDA, small business set-aside).

MATOC (multiple award task order contract) and MACC (multiple award construction contract) are agency terms, not FAR definitions. They're multiple-award IDIQs used within one agency, such as the Army Corps of Engineers' construction MACCs. The same day, DoD had an open sources sought notice for an "FY27 GEOTECHNICAL MATOC."

"MAC" is trickier. In the FAR, it means a multi-agency contract: one agency's IDIQ that other agencies can use. SBA's rules use the same letters for "multiple award contract." Check the notice to see which one is meant.

GWACs and other governmentwide contracts

A governmentwide acquisition contract (GWAC) is "a task-order or delivery-order contract for information technology established by one agency for Governmentwide use." Here's where the main ones stood in September 2026:

Polaris has four pools: small business, HUBZone, SDVOSB and WOSB. GSA's OASIS+ is different: it isn't a GWAC but a multi-agency program of six professional services IDIQs, for total small business, WOSB, SDVOSB, HUBZone, 8(a) and unrestricted.

These vehicles are consolidating. A March 2025 executive order told the Office of Management and Budget (OMB) to make GSA "the executive agent for all Government-wide acquisition contracts for information technology." How that affects GWACs run by other agencies, like SEWP, isn't settled yet.

How small businesses get on IDIQ contracts

1. Bid on set-aside IDIQs and pools. SBA's rule says "The contracting officer must set-aside a Multiple Award Contract if the requirements for a set-aside are met." Agencies can also set aside part of one, or reserve awards for small businesses. Polaris and OASIS+ are examples, with pools just for small firms.
2. Watch for on-ramps. The FAR overhaul text (16.504-4) lets a contract add new holders during "open seasons," called an on-ramp. It can also remove holders, an off-ramp, for "underperforming, failure to actively participate in order competitions, or if requested by the awardee." The codified FAR has no equivalent. GSA keeps its OASIS+ solicitations "continuously open," with rolling awards.
3. Form a joint venture. Agencies "must consider work done and qualifications held individually by each partner to the joint venture," and can't require the small partner to meet every requirement alone. A joint venture between a protégé and its SBA-approved mentor can compete as small. See teaming agreements.
4. Join a holder's team. Working on orders as a subcontractor builds the past performance that helps you win your own spot later.
5. Answer IDIQ market research. A sources sought notice for an IDIQ, like that geotechnical MATOC, is your chance to help it get set aside. See how to respond to sources sought notices.

There's plenty to watch. On September 26, 2026, FedReady's search of SAM.gov data showed 116 open notices with IDIQ, MATOC, MACC or "indefinite" in the title. About 1,900 mentioned IDIQ or indefinite delivery in the description.

Set-aside orders under multiple-award contracts

Even on an IDIQ open to large companies, an agency can reserve some orders for small businesses. It's the contracting officer's call in both FAR texts:

• Codified FAR 19.504: contracting officers "may, at their discretion, set aside orders placed under multiple-award contracts." When they do set aside an order above $350,000, they "shall first consider" the 8(a), HUBZone, SDVOSB and WOSB programs before a general small business set-aside.
• FAR overhaul text 19.111-2: the decision to set aside an order or not "is an exercise of discretion granted to agencies and not a basis for protest."

The overhaul's small business part hasn't been formally proposed as a rule yet, so its wording could still change. See set-aside contracts explained for how each program works.

Can you protest a task order?

Only in limited cases. Federal law generally bars protests of task and delivery orders, with two exceptions:

• the order increases the scope, period or maximum value of the contract; or
• the order is worth more than $10 million at civilian agencies, or more than $35 million at DoD, NASA and the Coast Guard. Only the Government Accountability Office (GAO) hears these value-based protests.

The DoD figure rose from $25 million to $35 million in a law enacted December 23, 2024. The FAR overhaul text (16.508) says $35 million, while the codified FAR (16.505) still says $25 million; the statute controls. This is a plain-English summary, not legal advice. If you think an order was handled unfairly, talk to a government contracts attorney promptly.

Other federal contract types you'll see

"IDIQ" describes how the government orders. Each contract or order also has a pricing type:

A few details matter for small firms:

• Fixed price is preferred. Under the FAR overhaul text, "Fixed-price contract types are the default and preferred contract types."
• T&M has guardrails. It needs a written determination and "a ceiling price that the contractor exceeds at its own risk."
• New sign-off rule. Under Executive Order 14402 (April 30, 2026) and the FAR overhaul text (16.104), contracts and orders that aren't fixed-price need a written justification approved by the head of the agency at or above set values: $10 million at most agencies, $25 million at DHS, $35 million at NASA and $100 million at DoD. Multiple-award base contracts are exempt, but orders under them aren't.

IDIQ vs. BPA: an IDIQ is a contract with a guaranteed minimum. Under a BPA, "the Government is only obligated to the extent that authorized orders are placed." The solicitation tells you which type you're pricing, so check it before you start. See how to read a government solicitation.

Next steps

If a governmentwide contract is your goal, compare IDIQs with the GSA Schedule. When you find an IDIQ solicitation, learn how to read a government solicitation, and check which set-aside programs could get you into a small business pool.

This guide is general information, not legal or financial advice. Rules and thresholds change, so confirm details on SAM.gov and the official agency sites linked above before you act. FedReady is an independent company and is not affiliated with any government agency.