What is the authority to add an additional year past the POP to a cost contract?
I would first check to see if FAR 52.217.8, Option to Extend Services was included in the contract. The clause states: 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.
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If this clause is included, you can extend the contract for up to six months using this clause as your authority. Beyond that six months, the authority to extend for another 6 months would have to come in the form of a Justification and Approval (J&A) to put what would basically amount to a sole source contract in place as a bridge to get you the additional six months.
If the clause was not included, you would need to do a sole source bridge contract for one year, using you agency J&A procedures and approved J&A as your authority.