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  • Question

    Since you have already evaluated the price at which that additional term (up to 6 months) would be priced (i.e. the last option) do you have to notify offerors that you will be evaluating the last option 1.5 times for the total evaluated price? In language such as this: As part of the price evaluation, the Government will evaluated the Option to Extend Services under FAR Clause 52.217-8 by adding one-half of the Offeror's final option period price to the Offeror's total price. Thus, the Offeror's total price for the purpose of evaluation will include the base period, first option, second option, third option, fourth option, and one half of the fourth option. Or, since the price of the last option was evaluated, and you still have to write a DF to exercise the clause and determine the price fair and reasonable, is it unnecessary to evaluate the last option 1.5 times?


    Answer

    The FAR Clause 52.217-8 Option to Extend Services, gives the contracting officer specific language regarding the amount of the option price. The clause states, "The Government may require continued performance of any services within the limits and at the rates specified in the contract." The inclusion of the clause in the solicitation and subsequent contract notifies the offerors that the Government reserves the right to exercise this option to extend services. Providing additional information in the solicitation and how that additional information is worded is a decision of the Department, Command or local office policy.

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