Can i extend the contract beyond 12 month period under annual appropriation of OMA funds? and If the delay was caused by the government, could it be considered as a type of consideration for the contractor to perform with POP being extended at no addtional cost to the government?
Yes, you can extend the contract beyond 12 months as long as the extension is at no cost.
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If this is a government caused delay, the extension is not a form of consideration since the reason for the extension was the government's breach of its contractual responsibilities. The contractor is entitled to a schedule extension plus consideration (non-monetary).
You can always cite "mutual agreement of the parties" as the basis for the modification.