What are the differences between indefinite delivery and indefinite quantity contracts?

Indefinite Delivery and Indefinite Quantity contracts (IDIQ) are contracts established by the government when they are not sure of the exact amount or type of goods or services they will need going forward. IDIQ contracts are most often used in the construction, services, and supplies industries. An indefinite delivery contract is used when the government knows the type of goods or services they need but not the exact amount that they will require over the life of the contract. This means that the government can order any “quantity” of the goods or services as needed and the contractor must supply the “quantity” ordered. Through this type of contract, the government can retain the ability to order as much or as little as needed. An indefinite quantity contract, on the other hand, is used when the government knows the amount of goods or services it will need over the life of the contract but not the exact nature of the services or goods. This means that the contractor can provide any “type” of goods or services as needed to meet the quantity requirements of the contract. Through this type of contract, the government can be sure that the amount of goods and services it orders will be delivered and the contractor is given a certain degree of flexibility in providing the goods or services. In summary, the main difference between indefinite delivery and indefinite quantity contracts is that the former refers to contracts where the government knows the type of goods or services needed but not the exact quantity, and the latter refers to contracts where the government knows the amount of goods or services needed but not the exact type.

What are the differences between indefinite delivery and indefinite quantity contracts?

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