'Fraid that is not really what happens. As an AF Comptroller (money guy), with a government contracting course under my belt, I have worked with IDIQ contracts. What that really means is, “be ready to send us the items when we order them, on the schedule we provide when we order.” It is a way to have an open contract against which individual delivery orders can be made, without having to go through the full bid solicitation, review, selection, and purchase order steps every time you need more of that item. This actually both saves time and money; not only does it prevent the long bid process from repeating, it also prevents over-ordering to have some on hand, “just in case” we might need them later.
@Craig_AR U R The Man. Thanks for educating me/us. When I read these kinds of statements in corporate statements I cringe. They “sound” like an awful deal when, as you’ve pointed out, they really may be the right way to do things.
I forgot to give a specific example. Back in the 80’s the AF used IDIQ contracts for personal computers (anyone remember the Zenith Z-100?). Under the IDIQ, each AF base could order as many as they needed, using locally budgeted money, to be sent out directly to the location that needed them. Better than a massive purchase to a big warehouse, to hang round until a location asked for some. Same deal on an IDIQ for electric typewriters.