The concern relayed is that the solution leaves out the part that a "supplemental agreement would be a noncompetitive creation of a new contractual relationship. All of the case law that I have found says this is a cardinal change and an improper de facto sole source award. If the option performance term has expired the agency no longer has an option to exercise, regardless of whether the contractor is willing to accept the late exercise. In my opinion, in this situation the option exercise would be a sole source procurement and would need to be justified under an exception to the requirement for full and open competition."