FAR 17.2 Options

Question 1

Only utilize options when

Answer 1

CO determines it’s in the Governments best interest.

Question 2

CO Shall NOT employ OPtions when

Answer 2

Contractor will incur risk
Market prices are likely to change substaintially
Option represents know firm requirements for which funding is/will be present.

Question 3

Option Clause

Answer 3

52.217-9

Question 4

Length of Contract

Answer 4

5 years
DFARS limist ID contract to 5 year basic with 5 years of option (10 Years)
AFFARS state that if an AP is required, the AO has the authority to approve longer contrat period

Question 5

52.217-8

Answer 5

Option to Extend Services shall not exceed 6 months

Question 6

Steps to exercise Option

Answer 6

1. check clauses (-6-7-8-9)
2 Feedback from program on need, funding, and performance
3. Issue Intent Letter
4. Accomplish D&F
5. Issue Modification

Question 7

Prior to exercising the Option

Answer 7

1. Funds are Available
2. Requirement still exists
3. Excersing option would fulfill a need
4. Option was synopsized IAW Far Part 5
5. Contract not listed in SAM exclusion
6. Performance is acceptable (on other and this contrat)
7. Requirment to perform cost or price analysis prior to exercising option