June 05, 2013

Administering Indefinite delivery/indefinite quantity (ID/IQ) / Blanket Purchase Agreement (BPA) / Requirements Subcontracts

Some general rules for administering ID/IQ type vehicles:

1. ID/IQ Ceiling should include value for performance of all potential options.

2. Compliance documentation should be maintained in the ID/IQ file. DO/TO/Release files only require documentation updating inapplicable ID/IQ documentation. For example, if the TO includes labor rates not evaluated at the ID/IQ level, then a TO price analysis would be required.

3. When an ID/IQ is awarded on a competitive basis, all subsequent releases BASED ON THE PRICING EVALUATED AT THE ID/IQ LEVEL are considered competitive awards in accordance with FAR 15.403-1(c)(1)(iii). If new pricing is considered and awarded, that pricing would need to be competitively awarded at the TO level for the TO to be considered a competitive award.

4. During award, the ID/IQ should be administered at a level commensurate with the least restrictive contract type available for TO/DO award. In other words, if T&M and FFP task orders are available for TO award then the subcontractor should maintain an accounting system that's adequate for T&M awards and Advance Notice and Consent would be required under 52.244-2 if the contractor does not maintain an approved purchasing system.