As prescribed in 1517.208(d), insert this contract clause in cost-reimbursement type term form contracts when applicable. If only one option period is used, enter “NA” in the proper places of the clause. If more than two option periods apply, modify the clause accordingly.

Option for Increased Quantity - Cost-Type Contract (JUN 1997)

(a) By issuing a contract modification, the Government may increase the estimated level of effort by ____ direct labor hours during the base period, ____ during the first option period, and ____ during the second option period. The Government may issue a maximum of ____ orders to increase the level of effort in blocks of ____ hours during any given period. The estimated cost and fixed fee of each block of hours is as follows:

(b) When these options are exercised, paragraph (a) of the “Level of Effort” clause and the “Estimated Cost and Fixed Fee” clause will be modified accordingly.

(c) If this contract contains “not to exceed amounts” for elements of other direct costs (ODCs), those amounts will be increased as follows:

(End of clause)