We just bought a company that was awarded an IDIQ contract in one of the multiple technical categories in the small business category. The award was for a 2 year base with 3 one year options. The previous owner did not pay one of his sub-contractors. We are in negotiations with the sub-contractor for a payment plan and will use a waiver of liens to solidify the payment plan. The waiver includes liens against the Government. The KO issued a notice not to exercise the next option year. KO's reasoning is financial instability. What options does a contractor have to challenge the non-exercise of the next option year. KO did not state what documentation was acceptable to demonstrate financial stability.

The law on Government refusal to exercise an option is clear and well-established: the Government is not obligated to exercise an option. It's an… option.

My advice is that you work hard to change the Government's mind, because if you can't you won't have effective legal recourse.

You should consult an attorney to ensure that you're getting professional advice.

Thank you, That was my belief. Wanted to make sure I was not missing anything.