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  • Question

    The base POP has ended, the requiring activity is processing the funding PR&C, but it will be several days after the end of the base POP when the funding is recieved by the KO; can the option period still be exercised when the funding is recieved? Is there a "window' in which an option can be exercised following the base POP provided no services are rendered during the gap between the end of the base POP and the reciept of funding for the option?


    Answer

    If your base period has expired, you cannot extend the contract. 

    However, if you still have time you may use
    the following option to afford you additional time to receive the funding necessary to exercise your option.  If it’s not already included in the contract you can do a bilateral contract modification to add clause 52.217-8, Option to Extend Services.  This is ultimately a judgment call by the contracting officer.  If you can show that the omission of the clause was an inadvertent oversight, I would recommend adding the clause and exercising it in a subsequent modification. This action is a contract administration function and not usually a problem for the GAO or the courts.

    Don’t forget to adjust the date of the option as well.

    52.217-8 - Option to Extend Services (Nov 1999).  As prescribed in 17.208(f), insert a clause substantially the same as the following:

    The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within ______ [insert the period of time within which the Contracting Officer may exercise the option].



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