Indefinite Delivery/Indefinite Quantity (IDIQ) Contracting Can 

Hasten Implementation of HSIP-Funded Safety Projects

Alternative contracting approaches are becoming more widely used across the Nation. These methods can 

streamline Highway Safety Improvement Program (HSIP) project delivery, save money, and increase the rate at 

which needed safety improvements are installed. In the case of IDIQ contracting, agencies are able to “bundle” 

low-cost safety projects under a single contract. 

HIGHWAY SAFETY IMPROVEMENT PROGRAM – 

NOTEWORTHY PRACTICES

Innovative approaches to delivering Federal-aid 

road safety projects.

What is an IDIQ contract?

IDIQ contracts provide for an 

undefined quantity of services 

for a fixed time. Minimum and 

maximum quantity limits are 

specified in the basic contract 

as either number of units (for 

supplies) or as dollar values 

(for services). Contracting 

agencies use these contract 

vehicles when they anticipate 

a recurring need but cannot 

determine, above a specified 

minimum, the precise 

quantities of supplies 

or services they will require 

during the contract period. 

IDIQs can help streamline the 

contract process and speed 

service delivery. 

For more information on IDIQ 

contracts, visit https://www.

fhwa.dot.gov/construction/

cqit/idiq.cfm or contact your 

FHWA Division Office.

Montana’s Job Order Contracting Offers District-wide Solutions

In Montana, an increase in available HSIP funds in recent Federal authorizations 

combined with a need to quickly implement a variety of projects that were 

limited in scope, repetitive in nature, and had a minimal design component 

resulted in an IDIQ approach from the Montana Department of Transportation 

(MDT) known as “Job Order Contracting” (JOC). JOC provides a way for MDT 

to deliver common, low-cost safety projects quickly and easily. Project types 

include signs, delineation, solar flashers, and traffic control at HSIP project sites 

on Federal-aid eligible routes in each of the State’s five districts.

Under this contracting method, an IDIQ contract is bid for a specific district 

through a competitive bidding process, and the successful bidder will have 

a guaranteed minimum amount of work. The selected contractor will then 

receive their first Job Order containing a list of projects. The successful bidder 

is required to complete all the projects listed. The Job Order, which functions as 

the State’s notice for the contractor to proceed and perform the work, includes 

site plans, specifications, quantities, schedules to complete the work, any project 

certifications, and other required documentation. 

A typical MDT Job Order for HSIP-funded 

treatments will contain a bundled set of 

projects, often between 40 and 50. Each 

bundled Job Order is treated as a single 

task. Prior to issuing a Job Order, MDT 

staff meet to define goals, objectives, 

and schedule. Once work needs are 

identified, engineering staff coordinate 

with functional managers and district 

staff to investigate and review the work 

The amount of time it takes to 

put together a project and plan 

package for a JOC is reduced from an 

average of 1-2 years using traditional 

contracting methods for similar 

projects, down to an average of 

5 months. In addition, the average 

cost reduction has been 26 percent 

below the engineer’s estimate.

Source: Getty Images
HIGHWAY SAFETY IMPROVEMENT PROGRAM – NOTEWORTHY PRACTICES | IDIQ CONTRACTING

to be accomplished, the availability of information and 

documents concerning the sites, the existing conditions 

(e.g., as built drawings), and information concerning 

the proposed work (drawings, sketches, etc.). Although 

headquarters staff coordinate the development of the 

Job Order package, once the package has been issued 

to the contractor awarded the IDIQ contract, district 

staff manage the contractor’s work and review the 

installations for correctness and completeness. 

New Job Orders (i.e., Job Order No. 2, Job Order 

No. 3) are initiated via change order. MDT typically 

sets up 2 year initial contracts with an optional 

1 year contract extension.

Delaware’s IDIQ Solution Saves Time

Delaware DOT (DelDOT) also uses IDIQ contracting 

to decrease the time between completion of project 

design and start of construction. The agency’s approach 

varies from awarding contracts to individual contractor 

teams to making awards 

to multiple teams. 

DelDOT has also used 

open-ended contracts 

with no treatment 

locations specified as 

well as contracts that 

list only some treatment 

sites, leaving others to 

be determined. 

Multiple Contractor Selection based on Lowest 

Bid: DelDOT’s approach for improving signalized 

intersections is to make multiple IDIQ awards to 

qualifying low bidders. For these contracts, the agency 

will typically issue a request for proposal that includes 

all the devices and bid items the agency uses for 

building or upgrading signals. Under the current IDIQ, 

three contractor teams have been selected. Once 

DelDOT identifies an individual intersection project, 

agency staff identify the bid units (i.e., materials, 

equipment, or devices) that will be needed to complete 

the work. They then compare the bid prices submitted 

by the three awardees during the competitive IDIQ 

bid process to determine the lowest bidder for the 

group of bid items needed for that particular effort. The 

contractor with the overall lowest price is then offered 

the work order. Work orders must include appropriate 

National Environmental Policy Act approval; traffic, 

utility, right-of-way, and railroad permits; funding 

approvals; and sealed plans. The work order outlines the 

work locations, planned items, quantities of work, and 

the deadline for completion. 

The IDIQ contains a clause that limits the amount of 

work any individual contractor can be selected to 

receive, however, and once that limit is reached—or 

should the contractor decline to accept the work due 

to schedule conflicts or other considerations—the next 

lowest bidder is invited to accept the project.

No Locations Specified: For installations of certain 

safety countermeasures, such as high-friction surface 

treatments (HFST), rumble strips, and systemic signing and 

marking, an IDIQ contract is awarded to one contractor, 

but locations for treatment are not identified in the 

contract vehicle. For example, the original IDIQ for HFST 

installations listed no treatment sites, but the contract 

duration was 3 years, and the contract language included 

a set number of treatments and an associated contract 

value for those applications. Rumble strip contracts used a 

similar approach.

For IDIQ contracts with open-ended delivery of safety 

projects, DelDOT uses data-driven network screening to 

identify where improvements should be installed. 

Some Locations Specified: Beginning in 2015, an IDIQ 

was issued that included a group of specific sites to be 

treated. While originally intended to be open ended, due 

to uncertainty related to mobilization prices and high 

prices for the open-ended sites, the agency modified its 

approach to include a list of locations for treatment as 

well as a rider for unknown locations. 

An Effective Tool in the Safety Toolbox

Job Order or IDIQ Contracting has been used to save 

time and money and deliver safety projects at an 

accelerated pace, ensuring needed improvements are 

implemented and making our Nation’s roadways safer, 

faster. These approaches can be efficient practices for 

delivering multiple projects on a shorter timeline than 

needed for traditional contracting methods, and FHWA 

encourages agencies interested in improving safety to 

consider using this proven, helpful tool. 

For more information on this practice, please contact 

your State’s FHWA Division Office.

DelDOT’s primary measure of 

effectiveness is the amount of time 

between the completion of design 

and the start of construction. 

Between 2016 and 2022, this 

period ranged from 32 to 63 days 

with an average of 40 days over 

the 7-year period.

https://highways.dot.gov/safety

April 2023  FHWA-SA-23-014