What is an IDIQ contract?
In U.S. federal procurement, an indefinite-delivery, indefinite-quantity contract sets limits and terms for future orders. The government commits to a stated minimum; individual orders specify the work it needs.
Reading a multiple-award announcement
Suppose three suppliers win places on a five-year vehicle with a shared $300 million ceiling. They may compete for orders under that vehicle. Recording three $300 million sales would turn one purchasing limit into $900 million of unsupported business.
What establishes that a supplier won work?
Look for the order naming the supplier, the requirement and the amount. Keep the vehicle award and the subsequent order as distinct events, linked by their identifiers.
Read the source
Federal Acquisition Regulation, Subpart 16.5