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  • Question

    Can we award an option year, but not award all the CLINs? The contracting officer has advised that when the option is awarded, all the CLINs must be awarded. Thanks


    Answer

    The contracting officer is mostly correct. Because an option as written and originally agreed/negotiated provides the Government with the unilateral right to exercise it, the Government cannot simply change it and expect to retain that unilateral right. Exercising an option that is not in accordance with its original terms is not binding on the contractor. The Government can perform a partial Termination for Convenience to remove some of the CLINs from the option, but exercising the remaining CLINs would require a bilateral modification. Also, any out-of-scope modification of the option has to be justified and approved in accordance with FAR Part 6 requirements. 

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