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    Can an option line item on a definitive contract be exercised multiple times as implied above. In this instance even though this is a FFP contract, the Unit Price may differ because the contract specialist inlcuded 'range pricing' where it perhaps should not be in the first place. Shouldn't 'range pricing' be more or less restricted to 'D' type award (IDIQ, IDDQ, Requriements)? On the other hand say there is an 'option' lin eitem with a quantity of 10 ea @10.00 ea. Is it proper to exercise the option for a quantity of five (5) each for a total of $50.00 and then go back some time later and exercise the option again for the other five (5)?


    Answer

    Lee,
    I just left you a voicemail. I am a little confused about your question/the wording of your question.  Yes, you can have a FFP contract with option years; and, you can request different delivery dates for items under one line item.  However, I would not refer to that as an option being exercised multiple times.  Have I missed something here?  In addition, I am unfamiliar with the term "range pricing", but having a price variance, when pricing is known to fluctuate (ex. oil prices) is allowed.  If I have misunderstood your question and you would like to discuss further, feel free to give me a call. 

    R/
    Marcia E. Richard
    Professor of Acquisition Leadership and Contract Management


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