Indefinite Delivery/Indefinite Quantity

Indefinite Delivery/Indefinite Quantity and Basic Ordering Agreement

        “Currently one of the most problematic data gaps facing the DoD cost community is the lack of cost data for modernization and sustainment efforts on existing platforms. These programs often use contract structures like Indefinite Delivery/Indefinite Quantity (IDIQ) contracts or Basic Ordering Agreements (BOAs). The various tasks and delivery orders span the range from the development and fielding of modernized equipment, software-intensive efforts providing new capabilities, and sustainment and depot activities. Although these contracts are most often executed by major defense contractors and a single delivery order may well exceed the CSDR reporting threshold figure, no actual cost data is collected. For example, the B-2 program has more than six delivery orders, including two existing Acquisition Category (ACAT) I programs: the B-2 Extremely High Frequency communications program, and the B-2 Defensive Management System program. Also, smaller activities on an IDIQ contract, when combined together, may reach well beyond ACAT I financial threshold figures for reporting. However, individually these efforts may fall below CSDR reporting thresholds, as is the case for many elements of existing programs, such as the F-22 Modernization program, and the data are therefore lost.

        For contractors with modern financial systems capable of producing CSDRs, the DoD cost community now requires the collection of cost and software data on Delivery/Task orders on IDIQ contracts that directly support an MDAP, MAIS program, or Major System where individually, or in aggregate, the value of the task order(s) related to the same MDAP, MAIS program, or a Major System is likely to exceed existing CSDR threshold figures over the life of the IDIQ vehicle. The DoD Components shall collect this data in accordance with existing CSDR policies and procedures.”

               -DoD Cost Analysis Improvement Memo, January 9, 2017