Government Mechanics
IDIQ Contract
An indefinite-delivery, indefinite-quantity vehicle that lets agencies order goods or services as needed up to a ceiling.
Also known as: Indefinite Delivery Indefinite Quantity, Task-Order Contract
- What it is
- An IDIQ is a flexible contract with a maximum ceiling value under which an agency issues task or delivery orders over time. Winning a spot on an IDIQ makes a company eligible to compete for or receive those orders. It does not guarantee revenue.
- What it does
- IDIQ wins are announced with big ceiling numbers that grab headlines, but actual revenue depends on task orders that follow. Investors distinguish the ceiling from realized bookings. A position on a large multiple-award IDIQ is a long-term pipeline, not immediate cash.
- The evidence
- Government-services firms frequently announce multi-billion-dollar IDIQ ceilings that convert to revenue only gradually as task orders are placed.
- Best for
- Gov-services names like LDOS, SAIC, BAH, ACN's federal peers.
- Pairs well with
- sole-source-contract, appropriations, usaspending
- Use cautiously with
- Do not read the ceiling as booked revenue; on multiple-award IDIQs the winner may capture only a fraction of task orders.
- Cautions
- Task-order flow can lag years, so the catalyst is a slow burn, not an earnings event.
General information, not medical advice. Ingredient effects vary by formulation, concentration, and skin. Patch-test new actives and consult a qualified provider before starting prescription ingredients.
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