On-call. As-needed. Indefinite scope. Indefinite delivery indefinite quantity (IDIQ).
Whatever it's called, open-ended delivery contracts are an important tool in the A/E/C industry.
While traditional design contracts align the right team to tackle a specific project, an indefinite delivery relationship can help fill in the gaps for maintenance and repair work an owner knows needs to be addressed - but isn't sure when and to what extent.
Over the years, we've worked with owners across many industries under open-ended contracts, including Federal and State government, healthcare organizations, airports, universities, school districts and local municipalities. We've also seen them used for hospitality groups and city/county governments with multiple facilities, as well as large industrial complexes. Ultimately, any industry or owner with a need for various system and building upgrades, but no specific timeline, budget, or exact scope of the work, could benefit from an open-ended contract.
In this edition of Plains Talk, we'll talk about what we've learned over our years of executing both indefinite scope contracts, as well as the delivery orders they generate. We'll also share a few of the different ways these open-ended relationships have manifested - and how those relationships have become mutually beneficial.
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WPE Power Division Manager Daren Beckloff, PE during a site visit to the
Sanford Underground Research Facility in support of the SDSTA IDIQ.
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Prime Opportunity with a World-Renowned Client |
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South Dakota Science & Technology Authority Design/Consultation Services |
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Team Members
Albertson Engineering, Inc.
FMG Engineering, Inc.
RESPEC
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The South Dakota Science & Technology Authority (SDSTA) is the governing body overseeing the operation and maintenance of the Sanford Underground Research Facility (SURF) in Lead, SD. This world-renowned lab supports critical research in particle and nuclear physics. But it’s located in the unassuming Black Hills because the area’s depth and rock stability make it ideal for the environmental control necessary to avoid the impact of cosmic rays.
West Plains Engineering’s relationship with the site began 29 years ago, with an open-ended contract in 1993, when it was previously known as the Homestake Mine. Over the course of nearly three decades, and through multiple ownership changes, we stayed connected – performing infrastructure and building assessments to review the MEP systems and either perform or anticipate upgrades for what would eventually become the SURF.
By 2019, the SDSTA identified a need for numerous specific O&M projects geared toward studies, infrastructure, utility systems, controls, and ventilation. Rather than pursue each project individually, they focused on identifying a team of consultants who could deliver everything they needed under an IDIQ contract for design services.
With most of the work focused on MEP systems, West Plains Engineering took on a prime role, and joined with local sub-consultants Albertson Engineering (structural); FMG Engineering (civil, geotechnical, land surveying) and RESPEC (mining & underground infrastructure, water, environmental impact) to offer a full-service partnership under the IDIQ delivery. Since 2020, this team has performed four projects under the contract, including updates to the water system in support of research efforts, as well as security enhancements.
For SDSTA, the relationship has meant efficient, expedited project delivery from a team that is already uniquely familiar with the site and system performance goals. For the design team, it’s meant the ongoing opportunity to use the experience and knowledge we’ve built over nearly 30 years to support a long-time client in a truly one-of-a-kind setting.
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Mike Sigman, P.E. is an Electrical Engineer and Office Manager of our Rapid City office. He is currently the contract manager and Lead Electrical Engineer for the SDSTA Contract. Mike has been with West Plains Engineering since 1998.
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Smart Use & Execution of Indefinite Delivery Contracts |
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Over the past two years, our team has noticed an increase in the use of Indefinite Delivery/Indefinite Quantity (IDIQ) contracts as a popular contract method for Maintenance and Repair (M&R) projects. For a long time, this method was reserved mainly for Federal or State IDIQs covering a large region with multiple sites and campuses over a 3–5-year period. Now however, some owners are utilizing it as an effective tool for attacking their laundry list of system repairs, replacements and upgrades by essentially engaging a design team, or certain disciplines, in a short-term stand-by or "on-call" relationship.
During the contract period, the owner sends out delivery or task orders to the team, who are then responsible for providing a fee and proposing a schedule for the work. The two entities are able to discuss and come to an agreement on what works best for both sides – then work can begin quickly.
Approaching O&M projects this way has a number of benefits. For one, owners are able to skip the paperwork, lead time, and hassle of managing RFQs and RFPs for each individual project, meaning the work itself gets done quicker. The design team also becomes familiar with not only the facility or campus itself, but with the preferences of the owner. That level of understanding of the facilities and systems, and goals for how each operate can result in a better designed and implemented end product. The combination of these smart benefits puts a different spin on "IQ" within the IDIQ delivery process.
But while indefinite delivery contracts have a lot of upside, both owners and design professionals need to approach them with open communication and clear expectations. Without these, owners run the risk of expecting more than they receive, and design professionals might overextend themselves.
Here’s why.
A traditional, single-project contract offers the design team a host of benefits that make our lives, to put it simply, easier. Before the contract is ever on the books, we typically know a fairly defined scope of work, which team members and disciplines are needed, the schedule and budget, and how this particular single project fits into our current backlog. In short, we know what we’re up against and have a plan for how to allocate our resources to deliver.
When it comes to IDIQ contracts however, many of those details aren’t well-defined until months or possibly years into the contract when delivery or task orders are executed. While we may know the general amount of work to be done over the life of the contract... what the scope is, or when a major HVAC replacement or electrical upgrade will be approved under the owner’s budget and fall into our design backlog, is often uncertain. Knowing this, the design professional must be agile enough to accommodate the new delivery or task order into their workload when it's delivered. Oftentimes, this requires holding some resources "in reserve" to take on orders as they arise.
As the contract holder, be it prime or sub, it’s our responsibility and commitment to the owner that we’ll deliver whenever we’re needed. They’ve put their trust in us that we’re dedicated to their facility or campus and can manage our resources as a member of their team. We'd be lying if we said that was always easy, but after decades of IDIW work with various government and private owners - we know it's the linchpin in making these IDIQ relationships successful.
What any of our engineers will tell you about executing indefinite delivery orders is that the communication and coordination of the team is paramount to completing on time and under budget. The ability for multiple disciplines to assemble, review goals and budgets, agree to a schedule and successfully formulate a cohesive design for each delivery order hinges on the very simple concept of true teamwork. WPE is fortunate in that we have in-house electrical safety study and review, as well as medium and high voltage utility engineering to complement our core MEP capabilities. This allows multiple team members to coordinate and collaborate internally, limiting the need for outside consultants on mechanical and electrical delivery orders – thus expediting the design.
When other consultants are needed, it’s essential to have existing relationships with architects, civil, environmental, fire protection and structural engineers, and a host of other system specialists that can quickly jump onto a project and hit the ground running as a member of the team.
We’ve all witnessed the A/E/C industry pivot and change recently, and the use of open-ended delivery contracts is just another smart way we can all adapt and grow in how we serve owners. While it’s not the best delivery method for all projects, it certainly should be considered among the list of potential long-term solutions.
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Marty Christensen, P.E., is a Principal Mechanical Engineer and Building Services Division Manager for West Plains Engineering. He has been with the firm since 1994 and coordinated dozens of open-ended contracts during his more than 28 year career in the A/E/C industry.
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University of Iowa Hospitals & Clinics AHU IDIQ |
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While most indefinite delivery contracts cover the gamut of A/E or even discipline-level design, occasionally an owner finds themselves facing a string of projects of an even more specialized nature. This was the case for the University of Iowa Hospitals and Clinics, which recently identified the need to upgrade a number of air handling units across its vast campus. Even before COVID-19, UIHC understood the importance of maintaining adequate ventilation and fresh air for the health and safety of its patients and staff, and so pursued an IDIQ contract specifically for these AHU upgrades.
Prior to the IDIQ, West Plains Engineering had already worked with UIHC to upgrade five separate AHUs, including building heating and cooling system piping. We understood the goals for these systems, but perhaps more importantly, we saw the benefit to UIHC if they could expedite the process and delivery with an indefinite delivery relationship.
Since entering the AHU IDIQ, WPE has completed nearly $2.5 million in additional upgrades for the Roy Carver Pavilion and John Colloton Pavilion. The delivery process has worked so well that in 2021, West Plains Engineering accepted an additional IDIQ for full MEP services with UIHC over the next five years.
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Mike Drahos, P.E. is a Mechanical Engineer and Office Manager of our Cedar Rapids office. He is the Contract Manager for the UIHC AHU IDIQ, and has acted as both the Project Manager and Lead Mechanical Engineer on all AHU delivery orders to date.
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South Dakota State University MEP IDIQ |
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The campus at South Dakota State University is like a second home to our team. Many of us are either proud Jackrabbit alums or have had the privilege of working on some of the many exciting projects showcased in recent years. As much as we love those opportunities to enhance and expand SDSU, we’re equally committed to supporting the critical maintenance and repair work that keeps the foundation of this campus operating at peak performance.
When SDSU decided to pursue an IDIQ contract for MEP design services to address critical Maintenance & Repair projects in 2020 – we felt well prepared for the task. Covering 387 acres with more than 100 standalone buildings, South Dakota State University itself is the size and complexity of a small city. But over the course of our more than 30-year relationship with SDSU, we’d successfully completed nearly 150 projects in more than half of those buildings, as well as projects involving both the mechanical and electrical infrastructure. We’ve come to know the nooks and crannies of the campus – and what it takes to keep it running. This history gave us confidence that we could not only execute an indefinite delivery contract – but help it thrive.
To date, we’ve either completed or are currently working on seven projects under this MEP IDIQ, including HVAC studies and replacements, laboratory renovations, electrical upgrades, and even the relocation of a kiln. As budgets and schedules line up for the University, we’re able to quickly respond and move projects forward almost as seamlessly as if we were part of their own facilities team. Our understanding of the various buildings and systems on this campus continues to grow as a result, as does our partnership with the facilities staff at SDSU.
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Stuart Oster, P.E. is Head of the Mechanical Department in our Sioux Falls office. He has been the main point of contact for the SDSU IDIQ, and acted as the Lead Mechanical Engineer on all seven delivery orders received to date.
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West Plains Engineering News |
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Engineer's Week was Feb. 20-26, and we took advantage of the opportunity to celebrate our amazing team!
Our week-long festivities included daily gifts for every single one of our team members and special messages from their colleagues and clients. We also dressed our offices up, ate WAY too much food, and enjoyed video messages from some pretty special guests.
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Our Sioux Falls team enjoying an
E-Week cake-break.
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Cedar Rapids proving it's not a celebration
without balloons!
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The Casper crew posing like the E-Week Superheroes they are! |
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Our Rapid City team was camera-shy (and traveling around to site visits)...but the office looked great! |
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Please welcome Gabriel Lam to West Plains Engineering!
Gabriel officially joined us as a CAD Technician in our Cedar Rapids office in January we're thrilled to have him on the team!
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Rapid City Mechanical Designer David Dowling celebrated 15 years with WPE in early February! David joined our team in 2007 and has been involved in nearly 350 projects to date. We’d tell you how many spreadsheets he’s created since then too, but we’ve lost track. 😊
Happy anniversary David!
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Anthony Barella marked five years with West Plains Engineering on February 21. Anthony joined us in 2017 and is a CAD/Revit Technician in our Casper office.
Happy anniversary Anthony!
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Jerome J. Lohr College of Engineering Career Fair |
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Marty Christensen and Mike Fisher spent a day at the SDSU Jerome E. Lohr College of Engineering Career Fair in February. The Jackrabbit alums were there in search of Mechanical and Electrical Engineers to join the WPE team!
We're hiring in all four of our offices across the Upper Midwest for both Engineers and Designers, as well as CAD/Revit Technicians. Learn more about our Opportunities, and check out a day in the life at WPE using the link below!
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Rapid City, SD | Sioux Falls, SD | Casper, WY | Cedar Rapids, IA |
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