U.S. Small Business Administration--Indefinite-Delivery Indefinite- Quantity Contract Guaranteed Minimum
B-321640, Sep 19, 2011
A valid obligation must reflect a bona fide need at the time the obligation is incurred. Thus, an agency must have a bona fide need for the guaranteed minimum of an indefinite-delivery indefinite-quantity contract (IDIQ). The U.S. Small Business Administration (SBA) violated the bona fide needs rule where it did not have a bona fide need for the guaranteed minimum quantities specified in an IDIQ contract at the end of fiscal years 2009 and 2010. SBA reported that it has adjusted its accounts to correct its bona fide needs violation.