Congratulations! You just won your first federal RFQ. You submitted your best proposal, navigated the evaluation process, and received that coveted award notification. But now you’re sitting there wondering: where’s the work?
If you’re reading this, you’re probably experiencing one of the most confusing aspects of federal contracting: winning a “contract” that doesn’t seem to generate any actual projects or purchase orders. You’ve checked your email obsessively, called the contracting officer, and maybe even visited the agency office. Still nothing.
Here’s the truth that nobody explains upfront: you probably didn’t win a traditional contract with guaranteed work. You likely won a spot on a prequalified vendor list, an IDIQ contract, or another type of federal contract vehicle that establishes your eligibility to compete for future task orders: but doesn’t obligate the government to give you any work whatsoever.
What “Winning” Really Means in Federal Contracting
In federal procurement, there’s a crucial distinction between winning a contract vehicle and actually receiving funded work. According to the Federal Acquisition Regulation (FAR) 2.101, many federal “contracts” are actually indefinite delivery vehicles that establish terms, conditions, and pricing: but don’t obligate specific performance or funding.
When agencies issue RFQs for these vehicles, they’re essentially building a bench of pre-approved vendors they can tap when specific needs arise. Your award means you passed their evaluation criteria and are now authorized to receive task orders or delivery orders under established terms. But the government has zero obligation to actually issue those orders.
Think of it like getting a driver’s license. Having the license means you’re qualified to drive, but it doesn’t guarantee anyone will let you borrow their car.
Common Federal Contract Vehicles That Confuse New Contractors
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
FAR 16.504 defines IDIQ contracts as vehicles that provide for an indefinite quantity of supplies or services during a fixed period. The government establishes minimum and maximum dollar amounts, but there’s no guarantee they’ll ever reach those thresholds with your company.
IDIQ contracts are incredibly common across federal agencies because they provide flexibility. Agencies can quickly issue task orders for emerging requirements without going through a full procurement process each time.
Blanket Purchase Agreements (BPAs)
BPAs, governed by FAR 13.303, establish charge accounts with qualified vendors. Like IDIQs, they streamline future purchases but don’t guarantee any specific volume of business.
GSA Schedule Contracts
Getting on a GSA Schedule is often treated as a major win, but it’s really just the entry fee to compete. Schedule contracts establish your pricing and terms for the entire federal marketplace, but agencies still choose whether to buy from you, your competitors, or pursue other procurement strategies entirely.
Multiple Award Contracts (MACs)
MACs award several contractors the same basic contract vehicle, then compete them against each other for individual task orders. Winning a MAC position is just earning the right to compete: not the right to work.
Why Your Federal Contract Might Stay Dormant
Understanding why agencies create contract vehicles but don’t use them helps manage expectations and plan your business development strategy.
Budget Uncertainty: Federal agencies often establish contract vehicles during budget planning but may not have actual funding when fiscal years arrive. Continuing resolutions, budget cuts, or changing priorities can shelve planned projects indefinitely.
Requirements Changes: The cybersecurity project you bid on six months ago might no longer align with current agency needs. Technology requirements evolve rapidly, and agencies may pivot to different solutions entirely.
Internal Capacity: Government program offices sometimes overestimate their bandwidth to manage contractors. They may have the budget and the contract vehicle but lack the personnel to properly oversee additional work.
Political Shifts: New leadership, policy changes, or shifting national priorities can redirect agency focus away from previously planned initiatives.
Competition Dynamics: Even with a contract vehicle in place, agencies may choose to compete requirements among multiple awardees, pursue small business set-asides, or use other existing contracts instead of yours.
Smart Actions for Federal Contractors with Dormant Awards
Don’t panic if your federal contract seems dead in the water. Here’s your strategic playbook:
Maintain Your Compliance Posture
Keep all required documentation current. This includes your System for Award Management (SAM) registration, CAGE code status, required insurance policies, and any security clearances or certifications specified in your contract. SAM.gov is your central hub for maintaining this information.
Even dormant contracts require ongoing compliance. Some contractors lose opportunities because they let documentation lapse, assuming no work was coming.
Establish Regular Communication Rhythms
Schedule quarterly check-ins with your contracting officer and program office contacts. Don’t be pushy, but maintain professional visibility. Ask about upcoming requirements, budget planning cycles, and any changes in agency priorities.
Government personnel change frequently. Your original contacts may transfer, retire, or get reassigned. Build relationships with multiple people to maintain institutional knowledge about your contract.
Monitor Federal Business Opportunities
Track SAM.gov Contract Opportunities for task orders or delivery orders issued under your contract vehicle. Many contractors miss opportunities because they don’t actively monitor for task order competitions.
Set up automated searches for your contract number, relevant keywords, and the issuing agency. Task orders can be issued with short response times, so passive monitoring isn’t sufficient.
Understand Agency Budget Cycles
Federal agencies operate on fiscal years running from October 1st to September 30th. Budget execution often accelerates in the second and third quarters (January through June) as agencies work to obligate funds before year-end.
Learn your agency’s specific spending patterns. Defense agencies may have different cycles than civilian agencies. Some offices front-load spending early in the fiscal year, while others experience end-of-year rushes.
Leverage Market Research
Stay informed about your agency’s broader mission and challenges. Read their strategic plans, budget justifications, and congressional testimony. Understanding agency priorities helps you position for future opportunities and speak their language when opportunities arise.
Government executives frequently speak at industry conferences and publish articles about their priorities. This intelligence helps you understand when your dormant contract might become relevant.
When to Worry (And When Not To)
Most federal contract vehicles experience dormant periods. Don’t abandon hope if you haven’t received task orders in the first year. Some contractors wait 18-24 months before seeing significant activity.
However, pay attention to warning signs. If your contract vehicle is approaching its end date without any activity, if the agency has established competing contract vehicles, or if program leadership has clearly shifted focus, it may be time to pursue other opportunities.
Remember that compliance issues can derail even the most promising opportunities. Don’t let administrative oversights prevent you from capitalizing when task orders finally arrive.
The Reality Check Every Federal Contractor Needs
Federal contracting success isn’t just about winning contracts: it’s about winning the right contracts and managing them strategically over time. A dormant IDIQ contract with strong potential is often more valuable than a small task order with limited growth prospects.
Many successful federal contractors maintain portfolios of contract vehicles, knowing that only a fraction will generate significant revenue in any given year. The key is building enough relationships and contract positions that some will activate when budgets and requirements align.
Understanding what government evaluators actually look for helps you position for future opportunities under your existing contracts and compete more effectively when task orders are finally released.
Your Next Steps
If you’re sitting on a dormant federal contract, you’re not alone and you haven’t failed. You’ve earned a valuable business development asset that requires ongoing cultivation rather than passive waiting.
Focus on relationship building, compliance maintenance, and market intelligence. When the right opportunity finally arrives under your contract vehicle, you’ll be positioned to respond quickly and effectively.
Remember: in federal contracting, timing often matters more than capability. Your dormant contract today could become your most profitable relationship tomorrow.
Ready to turn your dormant federal contracts into active revenue streams? At Fix Your Bid, we help contractors develop strategic approaches to federal business development, from initial capture through task order execution. Our consultants understand the nuances of federal contract vehicles and can help you maximize your existing awards while positioning for future opportunities. Contact us today to discuss how we can help you navigate the complex world of federal contracting with confidence and clarity.
Internal Links
- Are You Making These 5 Fatal Federal Proposal Errors? What Government Evaluators Actually Look For in 2025
- 7 Mistakes You’re Making with Federal Compliance Audits (And How to Fix Them)