Indefinite-delivery contracts are used when the desired period of contract performance in known, but the exact time of delivery is unknown at the time of award. For example, if the Postal Service purchases a high-resolution printer, the Postal Service may establish an indefinite-delivery contract for further printer accessory purchases from the Supplier to reduce administrative lead time and inventory investment.
A delivery order is an order from the Postal Service to a supplier to deliver products under an existing indefinite-delivery contract. During the contract term, delivery orders are issued by the Contracting Officer or designated ordering official. Orders may be made against a single indefinite-delivery contract or against multiple indefinite-delivery contracts (see 4-1.4.2, Single Indefinite-Delivery Contracts and 4-1.4.3, Multiple Indefinite-Delivery Contracts).
If a single indefinite-delivery contract is noncompetitively awarded to a Supplier, then all orders against that indefinite-delivery contract are considered noncompetitive. If, after a solicitation is issued, a single indefinitely-delivery contract is competitively awarded to a Supplier, then all orders against that indefinitely-delivery contract are considered competitive.
If, after a solicitation is issued, multiple indefinite-delivery contracts are competitively awarded to several Suppliers, then the Contracting Officer may choose to either place an order against a single indefinite-delivery contract or to compete the requirement amongst all or some of the indefinite-delivery contract holders. While a certain indefinite-delivery contract might be appropriate for one particular order, it may be inappropriate for another, so the Contracting Officer should weigh the potentialities of each situation prior to making the purchase method decision. All orders subsequent to the award of multiple indefinite-delivery contracts are considered competitive.
