Hello everyone--
I'm a small business owner, preparing my first quotation for the federal gov't. I have a couple questions about option years which I'm hoping to get some help with. In particular:
[1] If I'm understanding things, the gov't is in complete control when it comes to exercising, or not exercising, option years. I.e. if three years down the road, we don't want to provide this service anymore, we nonetheless must, if the gov't wants it. Is that right?
[2] Any rules-of-thumb for pricing option years? Of course we're accounting for inflation, but there's also the risk that four years from now, our company will be much bigger and these contracts will no longer make sense for us. Is it typical to see much, much higher prices quoted for future years?
[3] Does the gov't look at the option years, or just the base year, when deciding whom to award the contract to?
Many thanks!