Minnesota Department of Transportation

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Indefinite Delivery / Indefinite Quantity (IDIQ)

MnDOT initiatives to reduce construction time and delivery of projects, improve quality and develop new

processes to administer projects


Orange barrels on a highway

IDIQ - Indefinite Delivery Indefinite Quantity


IDIQ is an acronym for a type of contract that provides for an indefinite quantity of work during a fixed period of time. The Department would place orders for individual requirements. Quantity limits may be stated as number of units or as dollar values.

IDIQ contracts require the Department to order and the contractor to furnish as least a stated minimum quantity of work. In addition, if ordered, the contractor must furnish any additional quantities, not to exceed the stated maximum. The minimum quantity should not exceed the amount that the Department is fairly certain to order.

Difference from traditional methods

  • IDIQ contracts have a variable quantity usually established by Dollar Value.
  • Work sites are identified and assigned by issuing Task Orders after the contract is approved.
  • No work is authorized on the IDIQ contract without a fully executed Task Order.


  • Budget-Fiscal Year spending – IDIQ can be used to control spending at the end of a fiscal year
  • Combining Contracts – IDIQ can be used to combine several small contracts into one larger contract which reduces the number of lettings and simplifies contact administration
  • Open Contract – IDIQ reduces amount of time between need and delivery of project
  • Reduced Design Cost – One detailed plan and specifications are utilized to perform multiple similar projects

IDIQ Task Order Execution

Finance - Funding Identification and Additional Encumbrance Info (4/15/16)

Process for determining funding

Use the “IDIQ Project Budget Tracking Form - State Funds Only" to identify the funds needed to cover the cost of work identified in each Task Order.

For contracts with a contract maximum value of $4,000,000.01 or greater, itemize work on Task Orders by Control Section, State Project Number, and Group. Submit the “IDIQ Individual Control Section Attribute Form” and the “IDIQ Project Budget Tracking Form – State Funds Only” when submitting the Task Order Package to OCIC for approval.

For Contracts with a maximum value of $4,000,000 or less, contact Kevin Kosobud to discuss options for tracking costs.

IDIQ resources

IDIQ process and forms

**Submit the IDIQ Project Budget Tracking Form to Transportation System Management (formerly Capital Programs) to ensure adequate funds are available for the TO, prior to submitting TO package to OCIC. Allow 2 – 3 business days for TSM approval.

Submit the IDIQ Individual Control Section Attribute Form only when your contract’s maximum value is $ 4,000,000.01 or greater. **

Submit all Task Order Request Packages and Certificate of Task Order Acceptance Documents to: MN_DOT_ContractChanges-Enc.

A Task Order Request package consists of the following:

  1. Task Order Template
  2. IDIQ Budget Tracking Form
  3. IDIQ Individual Control Sections Attribute Form - if applicable, determined by contract’s maximum value.
  4. Utility Certification Form
  5. Additional attachments listed in Section V. of the Task Order Template

IDIQ Task Order Request Package Forms

IDIQ Task Order template (Word) (08/03/17)

Fillable (PDF)

Blank (PDF)

Instructions (Word)

IDIQ Project Budget Tracking Form

IDIQ Project Budget Tracking Form

IDIQ Project Budget Tracking Form – SFO Instructions

IDIQ Individual Control Section Attributes

IDIQ Individual Control Section Attributes

IDIQ Individual Control Section Attributes Instructions

Utility Certification Form

Utility Certification Form


Additional documents for Task Order Administration and Close-out

Notice to Proceed Template (05/05/17)

Fillable (PDF)

Blank (PDF)


Task Order Group Funding Redistribution Form

Task Order Group Funding Redistribution Form

Use to request a transfer of funds from one group to another within an executed task order if the Task Order has the “groups” set-up option.

Certification of Task Order Acceptance


Use this document to finalize quantities between the Contractor and the Owner.
Submit completed form, within ten days after satisfactory inspection, to OCIC and the Finance Section, to reconcile encumbered and expended funds.

For more information regarding the IDIQ contracting process, please contact Kevin Kosobud.


What happens at the end of my IDIQ contract to the funds remaining, are they lost to the State’s General Fund or do they return to my district’s Operating Fund?

  • If the remaining funds are from the current fiscal year, the funds will be returned to the District road construction fund.
  • If the remaining funds are non-current fiscal year dollars, they will be returned to the State Road Construction fund.

How do I apply and account for Mobilization?

The IDIQ standard template has special provision language that establishes a payment method for Mobilization at 4%. There is a line in the Task Order Template and the Certificate of Task Order Acceptance forms to account for these payments.  If the pre-determined 4% is not appropriate please discuss with the Estimating Engineer in Pre-Letting Services.

How do I apply and account for Cost Escalation?

  • If Cost Escalation is included in the Special Provisions, apply the proper percentage outlined in the contract to all applicable items on the Bid Schedule for work performed on or after the Contract’s letting date anniversary.  Do not adjust unit prices.
  • Only pay increased prices for work completed during the escalation period; do not base increase on when item is paid.
  • Include items in each affected Task Order for this escalation.
  • Pay in accordance with the following:
    • On or after the one-year anniversary date, calculate an additional 2% and apply it to all the original contract bid list items for all work executed during year 2.
    • On or after the two-year anniversary date,  calculate an additional 4% and apply it to  all the original contract bid list items for all work executed during year 3.

What is Contingency for?

The “other” contingency money can be used for:

  • Spec. Book or Special Provision items with pre-determined prices, such as 1404 Additional Traffic Control Items,  water directed for dust control, erosion control items; or
  • minor variations in quantities.

Consider contingencies when writing Task Orders; consider any incentives or invoice items. The Task Order template has fields for these contingencies. “Other” contingency money included in this field is recommended at 2% of the total amount of the task order, and must be group specific, if applicable.  If more than 2% is desired, please contact Kevin Kosobud.  

How do I document Permanent Contract Deductions so they show and are accounted for?

This will be accounted for in the close-out process of the task order the funds are deducted. The Certification of Task Order Acceptance has been updated to include a line to reflect this deduction.