The contract in question had a specified period of performance (PoP). Once the period of performance runs out, no new requirements may be added to it even though deliveries may be made after the PoP ends.The original PoP was for 4 years from the date of award. When you exercised option 1 you extended the Pop for a year and subsequently when you exercised Option2 you extended the PoP for an additional year.

Not exercising Option three therefore established the end date for the PoP of your contract as of the last day of option 2.Once the period of performance has been reached you may not exercise any additional option periods.

If the PoP had not expired, then it might be possible to get an approved J&A for the period that you and the contractor agreed to.

Your KO is correct in this instance it appears your previous contract is null and void at this time relative to another option period.

As always, ensure that you consult with your acquisition team and legal counsel prior to making such a decision.