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  • Question

    Can you exercise an option with reduce rates not agreed upon in the base contract? I don't think I would be violating any competition requirements because we did a direct award to an 8(a) vendor.


    Answer

    You cannot exercise the option with reduced rates not agreed upon in the contract.  You are correct in what you explained to your end user with regards to exercising the option in accordance with the terms set forth in the contract. Your end user should have been well aware of the contract prices when it was initially awarded and the price was found to be fair and reasonable. 

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