517.202 Use of options.
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(a) Options may be used when they meet one or more of the following objectives:
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(1) Reduce procurement lead time and associated costs.
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(2) Ensure continuity of contract support.
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(3) Improve overall contractor performance.
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(4) Facilitate longer term contractual relationships with those contractors that continually meet or exceed quality performance expectations.
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(b) An option is normally in the Government’s interest in the following circumstances:
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(1) There is an anticipated need for additional supplies or services during the contract term.
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(2) When there is both a need for additional supplies or services beyond the basic contract period and the use of multi-year contracting authority is inappropriate.
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(3) There is a need for continuity of supply or service support.
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(c) An option shall not be used if the market price is likely to change substantially and an economic price adjustment clause inadequately protects the Government's interest.