Which of the following describes an Indefinite-Quantity contract?

An Indefinite-Quantity contract is characterized by its ability to provide an indefinite quantity of supplies or services, but within specified limits, over a defined period. This means that while there is no fixed amount to be ordered at the outset, the contract establishes a ceiling or maximum limit for the quantity of supplies or services that can be requested. This flexibility allows for adjustments based on needs that may arise during the contract term, making it particularly useful in situations where demand is uncertain or variable.

The fixed period aspect ensures that both the contracting agency and the vendor understand the timeline for which the agreement is effective, allowing for planning and resource allocation. This type of contract is often utilized in government and large-scale commercial purchases where the exact requirements may not be known upfront but can be estimated over time.