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  • Question

    Is the intent for the use of options to allow mods to be issued to increase CLINs in one option period and not increase the remaining option periods by the same dollar amount?


    Answer

    An option must be exercisable at an amount specified in or reasonably determinable from the terms of the basic contract, per FAR 17.207(f).

    Assuming your contract is subject to the Service Contract Act, the terms of the original contract included FAR 52.222-43. It says labor rates will be adjusted to reflect actual increases or decreases to comply with the Department of Labor wage determination applicable at the beginning of a renewal option period.

    So based of FAR 52.222-43 the increase or decrease would take place at the beginning of a renewal option period for applicable at the beginning of a renewal option period.

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