Expired PoP on Prime Contract_Can Options's be Awarded that have a PoP Beyond That

[realquiet]

Good day!

If one wants to exercise 3 options to a supplier for hardware on a Government contract. The PoP ends on say 12/31/2024; however, the supplier cannot deliver the hardware until say 7/1/2025, 10/1/2025, and 2/1/2026. Can the prime award these options with a PoP that goes beyond the prime contracts PoP? Or, does one first have to get the prime contract extended? Or, as long as the options are awarded before the prime contract PoP expires, is it okay? The Primes customer has committed to extending the PoP's, but they drag their feet and it takes a while and these options need to be exercised immediately. Obviously, the supplier will not accept the award with unachievable delivery dates and we are concerned that we cannot award options that go beyond the prime contracts PoP.

[Vern Edwards]

Does the contract contain an option for increased quantity clause, such as FAR 52.217-6?

[Vern Edwards]

Withdrawn

[Neil Roberts]

On 10/4/2024 at 1:33 PM, realquiet said:

If one wants to exercise 3 options to a supplier for hardware on a Government contract. The PoP ends on say 12/31/2024; however, the supplier cannot deliver the hardware until say 7/1/2025, 10/1/2025, and 2/1/2026. Can the prime award these options with a PoP that goes beyond the prime contracts PoP? Or, does one first have to get the prime contract extended? Or, as long as the options are awarded before the prime contract PoP expires, is it okay? The Primes customer has committed to extending the PoP's, but they drag their feet and it takes a while and these options need to be exercised immediately. Obviously, the supplier will not accept the award with unachievable delivery dates and we are concerned that we cannot award options that go beyond the prime contracts PoP.

You can enter into an option contract with any delivery date you want. You realize I hope that a normally worded option contract is not really enforceable until the option is exercised. This puts the supplier in a situation where it probably could not sign off on it without "long lead" $ to support the delivery schedule in the option in the event that you do exercise it. That money is your company's own privately funded money and can not be charged to the prime contract at this time because it is clearly not required by the prime contract. You may be able to recover that $ when and if the prime is extended.