Can the option be exercise IAW the terms of the contract even thought they didn't acknowledge the notice. Can you reference the authority for this action?
FAR 2.101 states "“Option” means 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." You do not need any response from the contractor to exercise an option that is already in a signed contract. The authority is included in the terms and conditions of your signed contract to potentially include FAR clause 52.217-9 -- Option to Extend the Term of the Contract.
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