Indefinite delivery-indefinite quantity (IDIQ) construction contracts use an overarching master contract between an owner and contractor for multiple projects over a specified time period. The practice is widespread in the U.S. federal government but its efficacy has been the subject of relatively few studies. This dissertation offers a state-of-practice review of IDIQ construction contracting as well as an empirical analysis of the competition and cost implications of using IDIQ contracts. Content analysis of 90 federal requests for proposal reveals IDIQ contracting use for a wide range of facility types and construction services. Findings suggest that IDIQ contracts reflect the inherent paradoxical organizational tensions in public sector procurements. On one hand, IDIQ contracts reflect a desire for flexibility, simplified procurement processes, and finding the most qualified contractors. On the other hand, public owners must put control mechanisms in place to obtain a fair price, protect the public interest, and comply with regulations. Statistical analysis of 935 U.S. Department of Defense construction projects shows that IDIQ contracting corresponds with lower levels of competition as measured by the number of bids, even when controlling for factors like delivery method and market conditions. A subsequent analysis of 316 U.S. Air Force construction projects shows IDIQ contracting is associated with approximately five percent higher costs, driven by higher bid prices as compared to engineering estimates. However, multiple award IDIQ contracts also appear to be effective at maintaining a minimal level of competition needed to protect the public’s interest. Interviews with practitioners reveal that IDIQ contracting may yield reduced transaction costs, better schedule performance, and other benefits that offset the cost premium. For design-build projects in particular, IDIQ contracts may serve as a streamlined alternative to two-step source selection. The findings of this dissertation contribute to bodies of knowledge on IDIQ contracts and framework agreements, neoclassical economic theory and paradox theory as applied to the construction industry, and construction project delivery methods research. It is the largest empirical study of IDIQ construction projects to date. The findings also have practical implications for public owners with large asset portfolios and for contractors interested in pursuing IDIQ contracts.
|Advisor:||Molenaar, Keith R.|
|Commitee:||Diekmann, James, Goodrum, Paul, Gransberg, Doug, Hallowell, Matthew|
|School:||University of Colorado at Boulder|
|School Location:||United States -- Colorado|
|Source:||DAI-B 78/12(E), Dissertation Abstracts International|
|Keywords:||Competition, Construction contract, Indefinite delivery indefinite quantity, Paradox theory, Price, Project delivery methods|
Copyright in each Dissertation and Thesis is retained by the author. All Rights Reserved
The supplemental file or files you are about to download were provided to ProQuest by the author as part of a
dissertation or thesis. The supplemental files are provided "AS IS" without warranty. ProQuest is not responsible for the
content, format or impact on the supplemental file(s) on our system. in some cases, the file type may be unknown or
may be a .exe file. We recommend caution as you open such files.
Copyright of the original materials contained in the supplemental file is retained by the author and your access to the
supplemental files is subject to the ProQuest Terms and Conditions of use.
Depending on the size of the file(s) you are downloading, the system may take some time to download them. Please be