This is cost type service contract and the renewal is going to the same sole source Contractor. Are there any known implications if the current contract is modified to extend the current contract POP past the 52.217-8 6 month extension.
The intent of Clause 52.217-8, Option to Extend Services is to provide the Government the unilateral right to a brief extension of services, at current rates (unless there is a new Department of Labor (DOL) wage determination), and for a period not to exceed a total of six months (per contract, including all options). How long you plan to extend your contract isn’t quite clear, except that you plan to extend it for more than 6 months. You cannot extend your contract more than 6 months using this clause. Clause 52.217-8 is a 6 month option, with rates made clear at contract award. No, you cannot extend your contract for 12 months in total or 12 month more (can’t tell from your AAP question). The reason is the Competition in Contracting Act (CICA), which is law. Your contracting officer and lawyer should not sign this extension because it is against the law to do so.
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You have only two options as I see it:
1) Do the market research and document in a Justification and Approval why awarding a sole-source bridge contract is your only option. You must be able to explain why only this contractor can do the work.
2) Solicit for one year of work. Use small business, FSS, or Full and Open competition
I also recommend that you look at General Accountability Office (GAO) decisions, Major Contracting Services, Inc., B-401472 (September 14, 2009), and Department of the Army—Reconsideration, B-401472.2 (December 7, 2009) that held that the option to extend services for up to six months as permitted under FAR clause 52.217-8, Option to Extend Services, must be evaluated as part of the original competition. Your legal office will probably be interested in how this option clause was evaluated five years ago.
Below is FAR language that makes it clear that 52.217-8 cannot be exercised for more than 6 months in total.
FAR 37.111 -- Extension of Services. Award of contracts for recurring and continuing service requirements are often delayed due to circumstances beyond the control of contracting offices. Examples of circumstances causing such delays are bid protests and alleged mistakes in bid. In order to avoid negotiation of short extensions to existing contracts, the contracting officer may include an option clause (see 17.208(f)) in solicitations and contracts which will enable the Government to require continued performance of any services within the limits and at the rates specified in the contract. However, these rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance thereunder shall not exceed 6 months.
52.217-8 -- Option to Extend Services.
As prescribed in 17.208(f), insert a clause substantially the same as the following:
Option to Extend Services (Nov 1999)
The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within ______ [insert the period of time within which the Contracting Officer may exercise the option].