Sign In
  • Question

    The question then arises can we exercise option year I for the remaining six months, after the six month extension ends? I realize we will no longer be able to extend as we have reached the six month limit.


    The answer depends on what contract states with regards to:
    (a)  how the quantity and unit pricing are defined for the option CLINs option exercise periods; AND
    (b)  how the option exercise periods are stated in the contract.
    With regards to the quantity and unit pricing—
    Does the option CLIN have the quantity in months and a corresponding unit price for each month? 
    If no, the Govt. is not able to unilaterally exercise less than the full option year.
    If yes, then is there contract language stating that the option CLIN can be exercise in part (i.e. exercise only 6 months vice 12 months)?
    If no, the Govt. is not able to unilaterally exercise less than the full option year.
    If yes, then it depends on what the contract language states with regards to option exercise periods.
    With regards to option exercise periods—
    What language was inserted into the first sentence of paragraph (a) to FAR clause 52.217-9 (or the equivalent term stated in a clause substantially the same as 52.217-9) in the contract state?  Full state of the FAR clause is provided below.
    52.217-9 -- Option to Extend the Term of the Contract (Mar 2000)
    (a) The Government may extend the term of this contract by written notice to the Contractor within _____ [insert the period of time within which the Contracting Officer may exercise the option]; provided that the Government gives the Contractor a preliminary written notice of its intent to extend at least ___ days [60 days unless a different number of days is inserted] before the contract expires. The preliminary notice does not commit the Government to an extension.
    (b) If the Government exercises this option, the extended contract shall be considered to include this option clause.
    (c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed ___________ (months)(years).  (End of clause.)
    Is the option exercise period for the unexercised CLIN still in effect?
    If yes AND the answer above to the question regarding quantity and unit pricing both being monthly also is yes, then yes the Govt. can unilaterally exercise the option CLIN for 6 months.

    If the option exercise period is not yet in effect or it is expired, then the Govt. cannot unilaterally exercise the option.

    Open full Question Details