The Wonderful World of IDIQs, Part 1: Making the Cut
A new trend is emerging in our industry. Municipalities are preparing to compete for infrastructure funding from state and federal sources and to increase their odds, they are assembling consultants and identifying shovel-ready projects.
What does this mean for the AEC firm? Expect to see more and more on-call or indefinite delivery indefinite quantity (IDIQ) contracts being released. These contracts allow preparedness and flexibility, providing the municipalities a pool of qualified consultants that can assist with budgeting, planning, and conceptual design of potential projects, ultimately putting those municipalities at the front of the line for funding.
As always, when it comes to getting on a rotation list, the competition will be tough. These coveted contracts are entry points for consultants who haven’t previously worked with the owner and at the same time, can be a solid backlog for firms that have established relationships. Pursuing these contracts means assembling an RFQ submittal that speaks to the upcoming work, but how do you do that when the work is yet to be defined and will be performed on an as-needed basis based on priority and future funding?
A Quick Note: In normal times, I would stop here and say invest in business development. Identify potential opportunities, meet with the municipalities, and learn about their anticipated needs so that you can speak directly to those needs in a submittal. But as we have learned over the last six months, getting access to the decision-makers has become extremely difficult, especially if you don’t have an established relationship. But don’t lose hope! The good news is that you may not be as far behind the pack as you might think – you’re not the only firm in town that hasn’t had access to the decision-makers. Also, before the arrival of COVID-19, some municipalities weren’t planning to release an IDIQ, so your competition will not have expected this style of contract and, therefore, most likely, has not been positioning months in advance for expected project opportunities.
So, how do you overcome a lack of relationship or knowledge of anticipated projects? You focus on delivering an RFQ submittal that communicates your firm’s ability to mitigate risks and execute on a fast turnaround. Think about the purpose of the IDIQ – flexibility, preparedness, and speed – then develop a submittal around those points. There are five basic concepts in a well-constructed IDIQ proposal:
Diversity: Showcase a variety of small, complicated, fast projects, not projects with long schedules and big budgets.
Flexibility: Focus on your team’s ability to manage multiple tasks and projects at once.
Familiarity: Highlight any knowledge associated with the owner’s standards and processes.
Proactivity: Convey your ability to foresee and overcome obstacles, such as cumbersome permitting procedures or materials with long-lead times, so that these factors don’t slow down the project.
Adaptability: Use examples to communicate how your team quickly responds to scope changes, budget adjustments, and schedule impacts.
Long story short, put yourself in the owner’s shoes and consider how your team will contribute to their success. Don’t get caught up in trying to explain why you are better than your competition. Instead, play into the FOMO factor and focus on crafting a submittal that answers the question, “What will they miss out on if they don’t hire us?”
Stay tuned for Part 2 in the Wonderful World of IDIQs when we talk about what you do to ensure you get work once you’ve secured your place on the rotation list.