IDIQs, BPAs, and the Myth of Billion-Dollar Government Waste

If you're in the U.S. and have a pulse, you’ve probably seen the headlines:

🚨 “DOGE Eliminates Billions in Government Waste!” 🚨

Sounds great, right? But let’s break down what’s really happening. Because what’s being framed as cutting waste is really just cutting contracts like IDIQs (Indefinite Delivery, Indefinite Quantity contracts) and BPAs (Blanket Purchase Agreements)... two of the most flexible, cost-effective contract types the government has.

What Are IDIQs + BPAs?

Both IDIQs and BPAs allow agencies to streamline procurement, reducing time-consuming full-and-open competitions for every single purchase. Here’s how they work:

• ‍IDIQs: These contracts set up a pre-approved pool of vendors that agencies can order from as needed. Think of it like a Costco membership for the government. Instead of issuing a new RFP every time they need something, agencies can quickly place task orders against an established contract.‍
• BPAs: Similar to IDIQs, BPAs are bulk ordering agreements with pre-negotiated pricing, sometimes tied to GSA schedules. Agencies use them to get volume discounts and lock in competitive rates over time.

In short, both IDIQs and BPAs increase efficiency, save taxpayer money, and ensure continuity of services. So why is the government slashing them?

How DOGE Is "Cutting Waste" (But Not Really)

When DOGE claims to have eliminated billions in government waste, here’s what’s actually happening:

1️⃣ They cut the IDIQ or BPA contract entirely. 2️⃣ They take the total contract ceiling (which is never guaranteed to be spent) and claim that as the savings.

For example, if an IDIQ had a $10 billion ceiling, but only a fraction of that would have actually been awarded, DOGE still claims they “cut $10 billion in waste.” That’s not real savings. It’s just bullshit optics.

Saying you cut $10 billion in waste because you canceled an IDIQ is like saying you saved $250,000 by not buying a Lamborghini... when you were never going to buy one in the first place.

Now, Thanks to DOGE and Elon, Everyone’s Suddenly a GovCon Expert

Before now, most of Americans didn’t know or care about how federal procurement works. But suddenly, government contracting has become a spectator sport, with armchair quarterbacks calling plays they don’t understand.

The same people who had zero interest in federal acquisitions last year are now passionately debating contract structures on social media... without actually knowing the difference between a credit limit and a bank account balance. It’s like watching someone who’s never thrown a football in their life scream at the TV about how an NFL quarterback should’ve read the defense.

And let’s be honest... Elon Musk weighing in on federal contracts is like a billionaire who’s never done BD telling proposal managers how to write a winning bid. (Oh wait…) 🤣

What Happens When IDIQs + BPAs Get Axed?

❌ Procurement takes longer. Every order requires a separate contract competition, adding months (or years) to acquisition timelines.

❌ Costs go up. Without pre-negotiated rates and volume discounts, agencies often pay more per project.

❌ Vendors (especially small businesses) suffer. Many companies depend on these contracts for predictable revenue. Removing them forces vendors to chase smaller, one-off contracts with higher administrative costs.

Small businesses are supposed to be the lifeblood of the economy. But instead of helping them compete, we’re cutting them off at the knees and calling it "cost savings."

The Bottom Line

Cutting IDIQs and BPAs is not eliminating waste. It’s eliminating efficiency, which frankly is hilarious since this effort is led by the Department of Government EFFICIENCY. The next time you see a flashy headline about “saving taxpayers billions,” take a closer look at what’s actually being cut. Because the real waste? That might just be the time and money the government is about to start losing by making federal procurement harder, not smarter.

And if you’re one of the new GovCon “experts” joining the conversation, welcome. Just know that some of us have been playing this game long before it was a trending topic.