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Option Year (OY)


schandler

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OK - I am very new to the contracting world, there are a lot of questions being passed around the office about certain contracts. One contract in particular is a 9 million dollar personal services contract, and the base year (08) period of performance is from August to August. What I would like to do is, exercise OY 09 until the around February or March time frame and then exercise OY 10. I want to do this for two reasons. first, this contract expires to close to the end of the fiscal year, by exercising the OY in 2nd quarter, it makes it much easier to manage. Secondly, it is with so many programs that need money at the end of the year, it is hard to hold on to money all the way to August.

My thoughts - I think this has something to do with servable tasks and non-servable tasks. I don't know if non-servable task will allow us to cross the fiscal year. Is this fair and legal to the contractor?

I have been looking in the FAR to find some answers, but I have not found what I am looking for. Can anyone help?

Thanks,

Scott

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Scott, I think you may have some trouble with what you propose. Have you taken a look at FAR 17.207(f)?:

"Before exercising an option, the contracting officer shall make a written determination for the contract file that exercise is in accordance with the terms of the option, the requirements of this section, and Part 6. " [underling added]

Do you think that exercising option periods for different spans of time than what was originally stated would be "in accordance with the option"?

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No, don't see any information in the contract about OY.

What is the period of performance for the option line items? Exercising an option 30 - 60 days in advance of the expiration date of the current period of performance is most common. You can not exercise and option period while changing the period of performance for that option period without a bilateral modification signed by the contractor. If I was a contractor, there would have to be a real good reason to shorten a period of performance because that could impact adversely impact my income. Check to see if the contract has clause 52.217-9.

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