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Task Order VS. Indefinite Delivery Contract


The terms “task order contract” and “issuance of task orders” frequently in discussions and documents that pertain to GSA schedules. Even though the FAR 8.4 provides specific authorities for GSA schedule contracts that supercede the FAR 16.5’s specific provisions for task order or indefinite delivery contract types, an understanding of these vehicles will help to better understand the way a GSA schedule works.

Acquisition Tool

An indefinite delivery contract is an acquisition tool that has grown substantially in popularity over the last decade. There are three types of indefinite delivery contracts: definite quantity, indefinite-quantity and requirements contracts. All three are used to acquire supplies and/or services when the exact times and/or exact quantities of future deliveries are not known at the time of contract award. Requirements contracts and indefinite quantity contracts are also known as delivery order or “task order” contracts.

TOC (Task Order Contract) 

Permit government stocks of specific items to be maintained at minimum levels and allow direct shipments to the users of products or services. They also permit great flexibility in both quantities and delivery scheduling and the ability of buyers to order supplies and services only after specific requirements for them materialize. Perhaps most significantly, task order contracts limit the Government's obligation to the minimum quantity specified in the contract. Task order contracts are used by buyers who cannot predetermine the precise quantities of supplies or services they will require during the contract period when it is inadvisable for them to commit to any more than a minimum quantity.

IDC (Indefinite Delivery Contract)

Using an IDIQ vehicle, buyers place orders for individual requirements, and quantity limits may be stated as number of units or as dollar values. The contract must require the buyer to order and the contractor to furnish at least a stated minimum quantity of supplies or services. An task order contract must specify the period of performance, including the number of option periods, and must specify the total minimum and maximum quantity of supplies or services the Government will acquire under the contract.

FAR Subpart 11.4 Delivery or Performance Schedules

(a) The time of delivery or performance is an essential contract element and shall be clearly stated in solicitations. Contracting officers shall ensure that delivery or performance schedules are realistic and meet the requirements of the acquisition. Schedules that are unnecessarily short or difficult to attain—
(1) Tend to restrict competition,
(2) Are inconsistent with small business policies, and
(3) May result in higher contract prices.
(b) Solicitations shall, except when clearly unnecessary, inform bidders or offerors of the basis on which their bids or proposals will be evaluated with respect to time of delivery or performance.
(c) If timely delivery or performance is unusually important to the Government, liquidated damages clauses may be used (see FAR Subpart 11.5).

-11.404 Contract clauses-
11.404 Contract clauses.
(a) Supplies or services.
(1) The contracting officer may use a time of delivery clause to set forth a required delivery schedule and to allow an offeror to propose an alternative delivery schedule. The clauses and their alternates may be used in solicitations and contracts for other than construction and architect-engineering substantially as shown, or they may be changed or new clauses written.
(2) The contracting officer may insert in solicitations and contracts other than those for construction and architect-engineering, a clause substantially the same as the clause at 52.211-8, Time of Delivery, if the Government requires delivery by a particular time and the delivery schedule is to be based on the date of the contract. If the delivery schedule is expressed in terms of specific calendar dates or specific periods and is based on an assumed date of award, the contracting officer may use the clause with its Alternate I. If the delivery schedule is expressed in terms of specific calendar dates or specific periods and is based on an assumed date the contractor will receive notice of award, the contracting officer may use the clause with its Alternate II. If the delivery schedule is to be based on the actual date the contractor receives a written notice of award, the contracting officer may use the clause with its Alternate III.
(3) The contracting officer may insert in solicitations and contracts other than those for construction and architect-engineering, a clause substantially the same as the clause at 52.211-9, Desired and Required Time of Delivery, if the Government desires delivery by a certain time but requires delivery by a specified later time, and the delivery schedule is to be based on the date of the contract. If the delivery schedule is expressed in terms of specific calendar dates or specific periods and is based on an assumed date of award, the contracting officer may use the clause with its Alternate I. If the delivery schedule is expressed in terms of specific calendar dates or specific periods and is based on an assumed date the contractor will receive notice of award, the contracting officer may use the clause with its Alternate II. If the delivery schedule is to be based on the actual date the contractor receives a written notice of award, the contracting officer may use the clause with its Alternate III.
(b) Construction. The contracting officer shall insert the clause at 52.211-10, Commencement, Prosecution, and Completion of Work, in solicitations and contracts when a fixed-price construction contract is contemplated. The clause may be changed to accommodate the issuance of orders under indefinite-delivery contracts. If the completion date is expressed as a specific calendar date, computed on the basis of the contractor receiving the notice to proceed by a certain day, the contracting officer may use the clause with its Alternate I.

At 2017 Specialties

Joint A Large Team-Member Ready to Aiming at 2017 Federal Wide-Open Business.

"In accordance with FAR Subpart 19.7 The Small Business Subcontracting Program". 

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Deign-Bid-Build, IDIQ, MATCO, Property Facility Managements, Global Manufacturing,  Maintenance and RFP Contracts. 

 "In compliance with FAR Part 9 Contractor Qualifications - FAR Part 12 Acquisition Of Commercial Items  - FAR Part 13 Simplified Acquisition Procedures - FAR Part 15 Contracting By Negotiation - FAR Part 16 Types Of Contracts - FAR Part 36 Construction and Architect-Engineer Contracts - FAR Part 46 Quality Assurance (et seq.)"

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