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  • Question

    Because the 60 day preliminary letter did not get sent to the contractor, nor did the 30 day binding notice of intent get sent to the contractor, can the option still be exercise? What is the proper course of action if the option period expires in 5 days?


    Answer

    We do not provide legal advice, however, our experience shows that you cannot exercise the option.  If you still have a requirement to fulfill, you need to proceed according to the FAR as if it were a new requirement. 
     
    It is well established that options must be exercised in strict compliance with the terms of the contract.  There are many cases reiterating this rule.  Here’s one:  “An attempt to exercise an option outside its terms does not constitute a valid exercise of the option.” Alliant Techsystems, Inc. v. United States, 178 F.3d 1260, 1275 (Fed. Cir. 1999).  We recommend that you consult your legal office for further guidance.
     

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