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  • Question

    Can a quantity range be extended - or a higher quantity range be incorporated- in a competitively awarded contract with Option years so long as the max qty. for all option years is not exceeded? Specifically, does the PCO have flexibility to exceed max. quantities in one year, and exercise less in another year so long as the max for all years is not exceeded and within their J&A dollar threshold?


    Answer

    The quantity range must reflect exactly what is provided in the contract.  Please see FAR 17.207 (f), which provides in part that the contracting officer must make a written determination prior to exercising an option that the exercise of that option is in accordance with the terms of the option. 
     
    Options are defined in FAR 2.101 as being "a unilateral right in a contract by which, for a specified time, the Government may elect to purchase additional supplies or services called for by the contract, or may elect to extend the term of the contract."  For an option order to be effective, the Government must exercise the option in exact accord with the terms of the contract.  See Freightliner Corp. v. Caldera, 225 F.3d 1361 (Fed. Cir. 2000).
     
    The Government may not include new terms into the option without meeting CICA requirements.  The Government must follow the option mechanics.  See Lockheed Martin Corp vs. Walker, 149 F.3d 1377 (Fed.Cir. 1998).


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