Can a extension to this type of contract be justified in the FAR due to inevitable construction service interruption?
I looked into the FAR matrix and did not see where an extension of services clause (FAR 52.217-8 or 9) would apply to your contract as there was no vision of including an option at the onset of the contract.
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Thus, the only suggestion that i can make is to decide what work needs to be done during the period which you will engage in a recompetition and make the case for a Justification and Approval (J&A) to cover a sole source continuation. This will enable you to have contract coverage during the time it will take to award a competitive follow-on IDIQ Construction contract.
Please check to determine if the above clauses (FAR 52.217-8 or 9) are in your contract. If not, write a FAR Part 6 J&A and if approved, you will have sufficient time to re-compete.
In the case of current ongoing construction efforts, you may extend the period of performance after receiving fair and reasonable consideration from the contractor for doing so.
I suggest that you cover this strategy with your local servicing legal staff to get a second opinion.