Task orders are how work actually gets assigned under umbrella contracts. They can be competed among the contract holders (fair opportunity) or issued on a sole-source basis for small amounts. Task orders have their own evaluation criteria, period of performance, and funding. For large IDIQ vehicles with many holders, winning task orders requires the same proposal quality as winning standalone contracts.
A firm holds a spot on a $500M IDIQ for IT services. The agency issues a $2M task order for a data migration project. The firm competes against other IDIQ holders and wins, receiving a specific period of performance and deliverables.
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