ipod24 Posted April 16, 2013 Report Share Posted April 16, 2013 1st Question: FAR 17.202 states "subject to the limitations of Para ( and © of this section, for both sealed bidding and contract by negotiation, the contracting officer may include options in contracts when it is in the Government's interest." Does this only apply to FAR 14 and 15? Is the use of Options applicable to FAR 13 - explicitly this may be a "duh" moment, but just want to make sure. 2nd Question: FAR 17.205 states "The contracting officer shall justify in writing the quantities or the terms under option, the notification period for exercising the option, and any limitation on option price under 17.203(g); and shall include justification document in the contract file." Since I started in this career field, I have not had to write up a justification on quantities or the terms under option - probably wrong way of doing business. I guess the agency's norm on using option was for the following reason referenced under FAR 17.202 (d)(1). "The Government's need in certain service contracts for continuity of operations..." Are contracting agencies doing just as what this reg. calls forth -- to write up a justification for use of options? Link to comment Share on other sites More sharing options...
napolik Posted April 16, 2013 Report Share Posted April 16, 2013 1st Question: Does this only apply to FAR 14 and 15? No, it applies to FAR Part 13. As there is no explicit prohibition against the inclusion of options in FAR Part 13 (or Parts 8 and 16 as well), you may include them. In this regard see two sections of the FAR – 1.102 and 1.102-4: 1.102 -- Statement of Guiding Principles for the Federal Acquisition System. (d) The role of each member of the Acquisition Team is to exercise personal initiative and sound business judgment in providing the best value product or service to meet the customer’s needs. In exercising initiative, Government members of the Acquisition Team may assume if a specific strategy, practice, policy or procedure is in the best interests of the Government and is not addressed in the FAR, nor prohibited by law (statute or case law), Executive order or other regulation, that the strategy, practice, policy or procedure is a permissible exercise of authority. 1.102-4 -- Role of the Acquisition Team. (e) The FAR outlines procurement policies and procedures that are used by members of the Acquisition Team. If a policy or procedure, or a particular strategy or practice, is in the best interest of the Government and is not specifically addressed in the FAR, nor prohibited by law (statute or case law), Executive order or other regulation, Government members of the Team should not assume it is prohibited. Rather, absence of direction should be interpreted as permitting the Team to innovate and use sound business judgment that is otherwise consistent with law and within the limits of their authority. Contracting officers should take the lead in encouraging business process innovations and ensuring that business decisions are sound. When using options in FAR Part 13, you need to review another section of FAR Part 1: 1.108 – FAR Conventions. The following conventions provide guidance for interpreting the FAR: © Dollar thresholds. Unless otherwise specified, a specific dollar threshold for the purpose of applicability is the final anticipated dollar value of the action, including the dollar value of all options. If the action establishes a maximum quantity of supplies or services to be acquired or establishes a ceiling price or establishes the final price to be based on future events, the final anticipated dollar value must be the highest final priced alternative to the Government, including the dollar value of all options. If you are using FAR 13.5, your limit is $6.5 million unless your procurement is covered by FAR 13.500 (e). Otherwise it is $150,000. 2nd Question: Are contracting agencies doing just as what this reg. calls forth -- to write up a justification for use of options? FAR 17.205 is an imperative. They are obligated to do it. Link to comment Share on other sites More sharing options...
Don Mansfield Posted April 16, 2013 Report Share Posted April 16, 2013 See also FAR 13.106-1( e ): (e) Use of options. Options may be included in solicitations, provided the requirements of subpart 17.2 are met and the aggregate value of the acquisition and all options does not exceed the dollar threshold for use of simplified acquisition procedures. Link to comment Share on other sites More sharing options...
napolik Posted April 17, 2013 Report Share Posted April 17, 2013 See also FAR 13.106-1( e ): (e) Use of options. Options may be included in solicitations, provided the requirements of subpart 17.2 are met and the aggregate value of the acquisition and all options does not exceed the dollar threshold for use of simplified acquisition procedures. Good one! Much better! I wonder if I can sue my opthamologist? Link to comment Share on other sites More sharing options...
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