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frank.watson

Option to Extend Services 52.217-8

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Good Morning.

Quick question. Can anyone tell me the difference between these two clauses? 1.2 talks about extending services within the limits and at the rates specified in the contract then in 1.3 talks about the ability to extend the contract as long as the duration does not exceed 60 months.

The reason I ask is I have a contract thats expiring (2 year period of performance) and we are exploring being able to extend it another year. Is my interpretation correct that they can only extend 6 months without having to renegotiate the rate$ - and separately can extend as long as the overall contract does not exceed 60 Months?

 

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52.217-8 -- Option to Extend Services.

As prescribed in 17.208(f), insert a clause substantially the same as the following:

Option to Extend Services (Nov 1999)

The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within ______ [insert the period of time within which the Contracting Officer may exercise the option].

(End of Clause)

52.217-9 -- Option to Extend the Term of the Contract.

As prescribed in 17.208(g), insert a clause substantially the same as the following:

Option to Extend the Term of the Contract (Mar 2000)

(a) The Government may extend the term of this contract by written notice to the Contractor within _____ [insert the period of time within which the Contracting Officer may exercise the option]; provided that the Government gives the Contractor a preliminary written notice of its intent to extend at least ___ days [60 days unless a different number of days is inserted] before the contract expires. The preliminary notice does not commit the Government to an extension.

(b) If the Government exercises this option, the extended contract shall be considered to include this option clause.

(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed ___________ (months)(years).

 

extension.tiff

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Read the prescriptions and you'll notice the difference.  FAR 52.217-8 is for services while FAR 52.217-9 is for other instances in which an extension of a contract with options may occur (think about the use of options in supply contracts).

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The -9 clause allows the CO to unilaterally exercise an option included in the contract for the period of time (term) specified in the option, provided the required advance notices are given and the CO complies with the requirements of FAR 17.207.  The clause also specifies the maximum duration of the contract if all options were to be executed.  This clause is used to allow for extension of a contract over a period of years.

The -8 clause permits the CO to unilaterally exercise an option for continued performance for up to 6 months, provided the required advance notice is given.  This clause is typically used to give a CO more time for continued performance under the existing contract while a new contract is being solicited and awarded.

If you are trying to extend your contract another year, and you are unsure if or how you are able to, it sounds like you may not have an option period(s) defined in your contract.  If so, then there is no option to exercise, even if the clause was included in the contract.  Only the -8 option would be available, but only if the clause was included in your contract. 

 

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From the scenario described in the original post, it looks like there is no optional line item to extend the duration of the contract and you're trying to create a time extension for additional services. That is not the purpose or intent of the – nine clause. The – nine clause describes the conditions under which the government may exercise a separately priced optional line item.

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