Exercising Options - Commercial Scvs

[Freyr]

Hi all, I'm overthinking something again, must be the rainy weather... I have a requirement for various COVID cleaning services where I have CLINs 0001 through 0003 as base CLINs and 0004 through 0005 as optional. These aren't different periods, just if we need an extra service we'll exercise the CLIN. The FAR doesn't explicitly have a clause for doing this as far as I can tell but it seems like 52.217-7 is pretty close even if the FAR says to include it for acquisitions "other than for services." I want it to say that we'll exercise those lines within 120 days of award (we expect completion within 120 days for everything, options included) so just filling out that part works fine. The issue is the part that says "Delivery of added items shall continue at the same rate that like items are called for under the contract, unless the parties otherwise agree." Seems like it's saying something different than the first line of the clause (where things are to be delivered at the stated quantity/price). What's the purpose of that last part of the clause? Am I even picking the right one for this scenario or does something else in the commercial world work better? 

 

Edit: Follow up question, if the optional CLINs are different periods is there anything I should consider? Like if CLINs 0001 through 0003 are from January through March, CLINs 0004 through 0005 are from October through December. 

Edited December 8, 2020 by Freyr
Add a question

[Itinerant CO]

Hi Freyr,

I interpret the last sentence of FAR 52.217-7 to indicate delivery speed, not price.  For instance, if your base CLINS are required to be delivered 30 days ARO, then your option CLINS would generally be required to be delivered within 30 days after the contractor received the exercised option - unless you agreed to something else.  You could also think of it in context of something that is supposed to be delivered in multiple shipments and a specified rate (i.e. 5 ea/month for 6 months). 

Either way, I think I would use something more along the lines of FAR 52.217-9 in your scenario. You can set the number of days for the advanced notice and the exercise of the option at whatever you need, but I would just be conscious of how much notice a contractor might need to adjust their manpower or cleaning supplies.  If they're going to need to order anything special for that optional service, more advanced notice might be warranted. If its just a matter of cleaning an additional small area, maybe 1-2 days notice is all that's needed. 

The beauty of all the option provisions and clauses prescribed by FAR 17.208 is that they are all "substantially the same as...". Maybe this is an opportunity to write something that fits your situation better than the standard clauses.