Is it better to award all contracts the same type or is it ok to award as stated above. Is there a FAR part that reference the above situation?
It would be acceptable to award the contracts as you have stated above. The question of which is better would be dependent on your situation and ability to administer the resulting awards. Awarding the phase 1 contract as a C contract with options as a D contract would be permitted and creative, however it will take some negotiation up front with the contractor to ensure a clear understanding of the resulting contract. Also, be sure to spell out clearly which FAR clauses apply to the C contract, as well as which clauses will apply to any resulting options that result in a change to a D contract. This would be important to the Government to maintain its unilateral right to exercise those options when appropriate to do so. I would advise careful coordination with legal to ensure that the language addressed in your contract to add the clauses to the option are spelled out, appropriate, and agreed upon before contract award is made. Contract types and terms and conditions are negotiable, and by continuing a contract with options that are C type could benefit the government by saving the time it would require to re-compete a follow-on effort.
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