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Extension of Period of Performance and Option Clauses


nlevit

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I hope that i put this in the right area.

I just started with a NASA contractor (Y) and while with a different contractor (X) it was a practice to write change orders (amendments) to extend the period of performance even if there were no options issued with the subcontract.

the current company that i work for (Y) management states that since the FAR only speaks to exesion of the period of performance in the clauses pertaining to having priced options in the basic subcontract, a contractor can not issue a subcontract change order extending the period of performance.

The other question i have, is: besides 52.217-4 through 52.217-9 and 17.202 through 17.208 are there other clauses which pertain to the issuance of Options? Thanks

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Guest Vern Edwards

The rules in FAR Parts 1 through 51 do not apply to contractors except to the extent that they have been incorporated into a contract. There is no reason why a contractor cannot use a change order to extend a contract as long as (1) contrary FAR rule has not been incorporated into the prime contract and (2) the subcontractor has either agreed to such a practice or is willing to go along with it.

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Since 1988, I have worked subcontracts for NASA prime contractors. I can assure you Mr. Edwards is right - as usual. I would only add that you should review your new employer's internal procurement regulations for any coverage of the matter.

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