What is an "indefinite delivery contract"?

An indefinite delivery contract is best characterized as a flexible contract type that allows for an indefinite quantity of goods or services to be delivered over a specified period. This contract type is designed to meet varying needs without the necessity for a set quantity upfront, making it ideal for situations where requirements may change or are uncertain.

This approach allows government agencies to procure services or supplies as the need arises, providing a mechanism for ongoing requirements without the constraints of a fixed quantity. The arrangement is particularly beneficial in industries where demand fluctuates or where the scope of work can evolve over time. This flexibility helps ensure that agencies can respond to changing circumstances and fulfill their obligations efficiently.

By contrast, a contract with a fixed amount of goods or services does not offer this level of adaptability, as it is designed to deliver specific quantities predetermined at the outset. A contract that can be terminated at any time suggests a different type of flexibility not specifically associated with indefinite delivery contracts, while a contract limited to specific contractors restricts participation, which goes against the inclusive nature of indefinite delivery contracts that are open to multiple suppliers under specific terms.