If you have a multi-year contract for three years for the initial performance and include two option years to round out the 5 year PoP, does the cancellation fee only apply for the program years 2 and 3?
FAR Clause 52.217-2(d)states:
(1) Cost--
(i) Incurred by the Contractor and/or subcontractor;
(ii) Reasonably necessary for performance of the contract; and
(iii) That would have been equitably amortized over the entire multi-year contract period but, because of the cancellation, are not so amortized; and
(2) A reasonable profit or fee on the costs.
* Does over the entire multi-year contract period include any options or just the program years?