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OPERATING STATUS

FULLY OPERATIONAL

Question
Provided the contractor agrees, may I use 52.212-4 to propose a supplemental agreement thereby exercising Option Period 1 at the agreed to price in the base contract? Additionally, may I also propose in the supplemental agreement that all other terms and conditions of the base contract remain unchanged? If the supplemental agreement is permitted under 52.212-4 should I then incorporate 52.217-9 and 52.217-8?
Answer
If the option prices were already agreed to, you may, with the contractor’s bilateral agreement, exercise your option. Because the 52.217-9 and 52.217-8 clauses were not initially included in the contract, the contractor could argue for a price revision but this is unlikely and the option will have to be exercised bilaterally. You could bilaterally include both of these clauses in your option exercise and add them to the contract to avoid having to do this in future option exercises or if in the future you want to use the -8 clause to extend your contract for up to 6 months without fully exercising an option, or to increase the length of the contract for up to 6 months after all options have been exercised.

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