Without seeing how the contract is written, this is a little difficult to give a definitive answer. As far as "requiring" EVM per DoD Instructions, it is not required for a Firm Fixed Price contract (non cost or incentive type). However, it is permissible with Milestone Decision Authority approval, to require EVM reporting on a Firm Fixed Price contract. So, it could have been written into the contract that when the option was exercised that EVM reporting would be required. This is why it is difficult to give an absolute answer. But again, strictly from what is required per instruction, it would not apply to the FFP CLINs of the contract.