1. Are there any regulations that support my recommendation to not consider these firms for award and eliminate them from the competition, despite possibly being the best offeror’s?
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If the ordering period extends into an option year, then the contract remains valid for that option year(s).
2. Are the options considered part of the requirement, for evaluation purposes, despite not being funded at time of award?
Yes. Paragraph (b) of the clause at FAR 52.212-2 states that the options will be evaluated (independent of funding).
3. Is there any implication to an offeror’s GSA contract expiring after the date we would exercise the last option period but prior to the period we would evoke clause 52.217-8—Option To Extend Services, when ½ of the offeror’s final option pricing was considered during evaluation?
Once the contract expires, the Option to Extend Services is no longer valid. However, if the clause at FAR 52.217-8 was in the solicitation, then it must be evaluated regardless of whether it could conceivably be exercised.