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Govt0905

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  1. It should be pointed out that if the contract has option years that are not funded, it is important not to remove the FAR 52.232-18 (Availability of Funds) clause from the contract. There is a series of ASBCA rulings from the 1980-1990s whch hold that an attempt to exercise an option and insert the FAR 52.232-18 when it is not present in the base contract constitutes an invalid option exercise. Lear Siegler, Inc., Management Servs. Div., 86-3 BCA ? 19,155; Holly Corp., 83-1 BCA ? 16,327; J.E.T.S., Inc., 82-2 BCA ? 15,986, aff?d in relevant part, rev?d on other grounds, ASBCA No. 28642, 87-1 BCA ? 19,569, aff?d sub. nom., J.E.T.S., Inc. v. United States, 838 F.2d 1196 (Fed. Cir. 1988), cert. denied, 486 U.S. 1057 (1988). However, if the FAR 52.232-18 is present in the base contract, it can be placed in the option exercise. Cessna Aircraft Co., ASBCA No. 43196, 93-3 BCA ? 25,912, motion to reopen denied, ASBCA 43196, September 7, 1995, aff?d sub nom, Cessna Aircraft Co. v. Dalton, 126 F.3d 1442 (Fed. Cir. 1998), cert. denied, 525 U.S. 818 (1998); United Food Services., Inc., ASBCA No. 43711, 93-1 BCA ? 25,462; Western States Management Services, Inc., ASBCA 37504, 92-1 BCA ? 24,663.
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