Question on the exercise of an option. The option period does not start until May, but we are processing the modification to exercise the option now. Should the effective date of the modification be the day the option is exercised, (i.e. 18 Mar) or the day the option period of performance begins (i.e. 1 May)? I can see it both ways; the effective date of the action (exercising the option) is today (or whenever signed), but the effective date of the contract changes resulting from the action is in May, when the new PoP begins. Thoughts?

If you make the mod effective date 1 May, what happens if you need to issue another modification in April; for example to incorporate a new version of conflict of interest/non-disclosure agreement language that has to go into effect immediately? Then you have Mod 2 effective 1 May and Mod 3 effective 10 April. The effective date of the option is the first date of the period of performance specified for that option period, regardless of the date the mod is signed.