Under a Multiple Award Service Contract we have a new requirement for a new Task Order with pre-selected Exhibit Line Items for base and options:
Do we award the pre-priced exhibit line items based on the lowest price for BASE ITEMS only?  Or do we award to the lowest OVERALL EVALUATED price (base including options)?  

Contractor 1 base item price is lower than Contractor 2 base item price.  But if you add up the base items prices and option items prices of both contractors, Contractor 2 total evaluated price is the lowest. 

The following option clause is incorporated in the task order award: 

52.217-5 EVALUATION OF OPTIONS (JUL 1990)
Except when it is determined in accordance with FAR 17.206(b) not to be in the Government's best interests, the
Government will evaluate offers for award purposes by adding the total price for all options to the total price for the basic requirement. Evaluation of options will not obligate the Government to exercise the option(s).

(End of provision)

“17.206 Evaluation.

       (a) In awarding the basic contract, the contracting officer shall, except as provided in paragraph (b) of this section, evaluate offers for any option quantities or periods contained in a solicitation when it has been determined prior to soliciting offers that the Government is likely to exercise the options. (See  17.208.)

       (b) The contracting officer need not evaluate offersfor any option quantities when it is determined that evaluation would not be in the best interests of the Government and this determination is approved at a level above the contracting officer. An example of a circumstance that may support a determination not to evaluate offers for option quantities is when there is a reasonable certainty that funds will be unavailable to permit exercise of the option.”

I would think that the same principle should apply to task orders for continuity and consistency. You would be including the provision in the task order , correct?