IDIQ Contracts and Other Federal Contract Types, Explained
Updated
An IDIQ (indefinite delivery, indefinite quantity) contract sets the terms, a minimum and a maximum, and a period, but not the exact quantity: the agency then buys through task orders (services) or delivery orders (supplies) as needs arise. 124 open federal notices on Oct 19, 2026 name an IDIQ, MATOC or SATOC in their title.
Newest IDIQ, MATOC and SATOC solicitations
Single award and multiple award
A single-award IDIQ has one contractor who receives every order. A multiple-award IDIQ has several; for each order the holders compete again, under the fair opportunity rules. In construction these are often called MATOC (multiple award task order contract) and SATOC (single award). Government-wide acquisition contracts (GWACs) are multiple-award IDIQs for IT that any agency can order from.
How small firms get onto IDIQs
- Watch for the IDIQ solicitations themselves, many of which are set aside for small businesses.
- Watch for on-ramps, when an existing IDIQ adds holders.
- Team with a holder as a subcontractor until you can win a seat yourself.
The main contract types
- Firm-fixed-price (FFP): one price for the work; the contractor carries the cost risk. The most common type.
- Cost-reimbursement: the government pays allowable costs plus a fee, for work too uncertain to price.
- Time-and-materials (T&M) and labor-hour: fixed hourly rates for the hours worked, plus materials at cost.
- Blanket purchase agreement (BPA): a standing arrangement for repeat purchases, with calls placed as needed.
Read the type in every solicitation: it decides who carries the risk and how you price. See also RFP vs RFQ.
Questions
What is an IDIQ contract?
An indefinite delivery, indefinite quantity contract: terms, a minimum and maximum, and a period are set, and the agency orders what it needs through task or delivery orders.
What is the difference between a task order and a delivery order?
Task orders are for services; delivery orders are for supplies.
What is a firm-fixed-price contract?
A contract with one set price for the work; the contractor carries the risk of its costs going up.
What is a MATOC?
A multiple award task order contract: an IDIQ with several holders who compete for each order.