Danger Pay and Fee in Contract Pricing Including CAS & Allowable Costs Posted January 29, 2009 · Report reply Vern,That's a good question and one that I have been thinking about lately. I'm not sure if they are unpriced options. Consider FAR 17.207(f)(3):To satisfy requirements of Part 6 regarding full and open competition, the option must have been evaluated as part of the initial competition and be exercisable at an amount specified in or reasonably determinable from the terms of the basic contract, e.g.? [...](3) In the case of a cost-type contract, if? (i) The option contains a fixed or maximum fee; or (ii) The fixed or maximum fee amount is determinable by applying a formula contained in the basic contract (but see 16.102©);NAVSEA would argue that their options meet those criteria. I don't know that they're wrong.