Term
Guaranteed minimum
The smallest dollar amount the government commits to actually order from you just for holding a seat on the vehicle.
For an IDIQ to be a real, enforceable contract rather than just a hope of future work, the government has to promise you at least some minimum dollar amount in orders over its life, however small. If the agency never places any task orders with you at all, it generally still owes you that minimum. It is usually a token amount, not something to plan a business around, but its real function is legal: it is what makes the vehicle a binding contract instead of an empty promise.
In a sentence
"The government guarantees a minimum order of a stated dollar amount over the life of this contract." That figure is a floor, not a forecast, so do not confuse a guaranteed minimum with what you can actually expect to earn from holding the seat.
Also called
- minimum guarantee
- guaranteed minimum order
- minimum ordering guarantee
Terms like this show up in every federal notice. We translate them in place, on every notice in your trade.