On July 17, the U.S. Air Force announced it awarded a $15 billion Indefinite Delivery/Indefinite Quantity (IDIQ) contract for its C-130J Super Hercules program.
Indefinite delivery, indefinite quantity contracts provide for an indefinite quantity of services for a fixed time. IDIQs help streamline the contract process and speed service delivery. With the C-130J IDIQ announced on July 17, the U.S. Air Force will use the allocated money to fund aircraft procurement (including Foreign Military Sales) development of new capabilities, engineering services, initial spares and support equipment for its C-130J Super Hercules programs.
This IDIQ has an ordering period of five year and an execution period of 10 years with a ceiling of $15 billion.
Important facts about this IDIQ include:
– This is a sole-source IDIQ.
– It is not an outright award of $15 billion or a contract awarded for $15 billion worth of orders for aircraft or support. It defines a “cap” for funding in a defined time.
– Aircraft and service contracts associated with this IDIQ will still have to be ordered and funded through standard contracting processes.
This IDIQ streamlines previous, independent contract work for procurement and research and development under the umbrella of one contracting vehicle. It facilitates for a simplified contracting process between the U.S. Air Force and Lockheed Martin, providing efficiencies between both organizations and creating an agile acquisition and software development framework.
