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Ahmadian Fard Fini, A, Akbarnezhad, A, Rashidi, T H and Waller, S T (2018) Dynamic Programming Approach toward Optimization of Workforce Planning Decisions. Journal of Construction Engineering and Management, 144(02).
Chao, L and Kuo, C (2018) Neural-Network-Centered Approach to Determining Lower Limit of Combined Rate of Overheads and Markup. Journal of Construction Engineering and Management, 144(02).
Choi, B and Lee, S (2018) An Empirically Based Agent-Based Model of the Sociocognitive Process of Construction Workers’ Safety Behavior. Journal of Construction Engineering and Management, 144(02).
Du, J, Shi, Y, Zou, Z and Zhao, D (2018) CoVR: Cloud-Based Multiuser Virtual Reality Headset System for Project Communication of Remote Users. Journal of Construction Engineering and Management, 144(02).
El Meouche, R, Abunemeh, M, Hijaze, I, Mebarki, A and Shahrour, I (2018) Developing Optimal Paths for Evacuating Risky Construction Sites. Journal of Construction Engineering and Management, 144(02).
Fuller, J, Brown, C J and Crowley, R (2018) Performance-Based Maintenance Contracting in Florida: Evaluation by Surveys, Statistics, and Content Analysis. Journal of Construction Engineering and Management, 144(02).
Ghodoosi, F, Abu-Samra, S, Zeynalian, M and Zayed, T (2018) Maintenance Cost Optimization for Bridge Structures Using System Reliability Analysis and Genetic Algorithms. Journal of Construction Engineering and Management, 144(02).
Han, K, Degol, J and Golparvar-Fard, M (2018) Geometry- and Appearance-Based Reasoning of Construction Progress Monitoring. Journal of Construction Engineering and Management, 144(02).
Kaminsky, J A (2018) National Culture Shapes Private Investment in Transportation Infrastructure Projects around the Globe. Journal of Construction Engineering and Management, 144(02).
Khanzadi, M, Nasirzadeh, F and Dashti, M S (2018) Fuzzy Cognitive Map Approach to Analyze Causes of Change Orders in Construction Projects. Journal of Construction Engineering and Management, 144(02).
Langdon, R R and Sawang, S (2018) Construction Workers’ Well-Being: What Leads to Depression, Anxiety, and Stress?. Journal of Construction Engineering and Management, 144(02).
Lessing, J and Brege, S (2018) Industrialized Building Companies’ Business Models: Multiple Case Study of Swedish and North American Companies. Journal of Construction Engineering and Management, 144(02).
Love, P E D, Teo, P and Morrison, J (2018) Revisiting Quality Failure Costs in Construction. Journal of Construction Engineering and Management, 144(02).
Moon, S, Xu, S, Hou, L, Wu, C, Wang, X and Tam, V W Y (2018) RFID-Aided Tracking System to Improve Work Efficiency of Scaffold Supplier: Stock Management in Australasian Supply Chain. Journal of Construction Engineering and Management, 144(02).
Praticò, F G and Giunta, M (2018) Proposal of a Key Performance Indicator for Railway Track Based on LCC and RAMS Analyses. Journal of Construction Engineering and Management, 144(02).
Rashid, K M and Behzadan, A H (2018) Risk Behavior-Based Trajectory Prediction for Construction Site Safety Monitoring. Journal of Construction Engineering and Management, 144(02).
Said, H M and Bartusiak, J (2018) Regional Competition Analysis of Industrialized Homebuilding Industry. Journal of Construction Engineering and Management, 144(02).
Said, H M and Kandimalla, P (2018) Performance Measurement of Building Sheet-Metal Ductwork Prefabrication under Batch Production Settings. Journal of Construction Engineering and Management, 144(02).
Sangiorgio, V, Uva, G and Fatiguso, F (2018) Optimized AHP to Overcome Limits in Weight Calculation: Building Performance Application. Journal of Construction Engineering and Management, 144(02).
Stanford, M S and Molenaar, K R (2018) Influence of Simplified Procurement Methods on Competition for Public Sector Construction. Journal of Construction Engineering and Management, 144(02).
- Type: Journal Article
- Keywords: Indefinite delivery–indefinite quantity (IDIQ); Construction management; Competition; Procurement; Contracting;
- ISBN/ISSN: 0733-9364
- URL: https://doi.org/10.1061/(ASCE)CO.1943-7862.0001419
- Abstract:
In response to problems of cumbersome regulations and understaffed public agencies, governments have worked to simplify procurement statutes and streamline processes. One of the most widely used simplified processes in the United States public sector is a subclass of agreements known as indefinite delivery–indefinite quantity (IDIQ) contracts. Some scholars and practitioners have criticized their use, suggesting public officials have taken advantage of simplified procedures at the expense of protecting the public interest. Specifically, IDIQ contracts have been seen as limiting competition, with adverse consequences for markets and price. However, no studies to date have empirically examined claims of limited competition from simplified procurement tools like IDIQ. This paper seeks to address that gap by evaluating the use of IDIQ contracts in the context of federal construction procurement. Using univariate and multivariate statistics, this study examined bid data from 935 U.S. Department of Defense (DoD) construction projects awarded between 2008 and 2015. The results show that IDIQ contracting does correspond with lower levels of competition as measured by the number of bids, even when controlling for factors like delivery method and market conditions. Using microeconomic theory and traditional assumptions of low-bid contracting, such limits on competition could have negative economic consequences. However, multiple-award IDIQ contracts also appear to be effective at maintaining a minimal level of competition needed to protect the public’s interest while potentially lowering the transaction costs of both proposers and government agencies. For design-build projects in particular, IDIQ contracts may serve as a streamlined alternative to two-step source selection. This study serves as the largest empirical analysis of IDIQ contracting to date and adds to the bodies of knowledge on public procurement and competition in the construction industry. The findings lay the groundwork for researchers to explore the production and transaction cost tradeoffs of IDIQ contracting. The study will also prove useful for public policymakers overseeing procurement regulations and for practitioners that develop or bid on IDIQ contracts.
Tran, D Q, Diraviam, G and Minchin, R E (2018) Performance of Highway Design-Bid-Build and Design-Build Projects by Work Types. Journal of Construction Engineering and Management, 144(02).
Xiao, J, Li, X, Zhang, Z and Zhang, J (2018) Ontology-Based Knowledge Model to Support Construction Noise Control in China. Journal of Construction Engineering and Management, 144(02).
Yiu, T W, Liu, T and Kwok, L C (2018) Explicating the Role of Relationship in Construction Claim Negotiations. Journal of Construction Engineering and Management, 144(02).