The US DOT published an interim final rule authorizing IDIQ contracts for Federal Aid construction. IDIQ project delivery generally refers to a not-to-exceed contract for a set time period that requires a contractor to execute as-needed work orders based on agreed upon unit prices.
The Federal Highway Administration (FHWA) began a two-step rule-making process to authorize indefinite delivery/indefinite quantity (IDIQ) project delivery in May of 2018. The first step involved developing the implementation processes and procedures. Step 2 is initiation of the rule-making process. FHWA is soliciting comments to 13 questions. The questions are located on page 10 of 16 (Fed. Reg. pg. # 72928).
INDOT and other state departments of transportation have awarded IDIQ contracts since 2018 under a FHWA experimental project (SEP-14). FHWA and state DOTs found success using IDIQ stating that the project delivery method reduces administrative costs by eliminating the quantity of small project design-bid processes. INDOT has utilized IDIQ in several districts for small bridge and roadway repair and improvement projects. Beginning on Nov. 16, state DOTs may utilize the IDIQ project delivery method for select scopes of work without specific FHWA authorization.
You may submit comments, identified by the document number at the top of this document, by any of the following methods:
- Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.
- Fax: 1-202-493-2251.
- Mail: Docket Management Facility, U.S. Department of Transportation, 1200 New Jersey Ave. SE, West Building Ground Floor, Room W12-140, Washington, DC 20590.
- Hand Delivery/Courier: West Building Ground Floor, Room W12-140, 1200 New Jersey Ave. SE, between 9:00 a.m. and 5:00 p.m., Monday through Friday, except Federal holidays. The telephone number is (202) 366-9329.