(2) The requirement covered by the option responds to an existing need of the State; As this brief discussion shows, the question of whether an option has been exercised correctly can be complex. If you have any questions or concerns regarding the exercise of options on your contracts, do not hesitate to ask us for advice and support. (ii) the fixed or maximum amount of the fee may be determined using a formula contained in the basic contract (see, however, paragraph 16.102(c)); [Note: This was a service contract, and it can be argued that FAR 52.217-9 option to extend the duration of the contract should probably have been used. However, it is clear from the case that both parties considered that this clause applied to the four separate CLIN examined above for 12 months]. (2) An amount to be determined by applying the provisions (or formula) of the basic contract, but without renegotiating the price of the work in a fixed-price contract; (1) A new invitation does not result in a better price or a cheaper offer than the one that offers the option. If the best available price is supposed to be the price of the option or it is the most advantageous offer, the agent should not use this method of market review. You must not have different validity dates related to the same specific action/effort in a contract document. What would decide whether the government should create a contractual lawsuit with this error, the intention would be the first basis of the solution. Other documents such as the PWS, etc.
can help determine what the intention was and what date is correct. In the case of an option, the planned date is already specified in the existing contract and would therefore be the relevant date. If the contractor decides to contest, the burden of proof is on the government. The agency received information about the experience and qualifications of the instructors offered by JRS, but told JRS that none of the candidates met all the requirements of the contract. On 31 May 2012, 66 days before the end of the reference year, the Agency notified JRS in writing of its provisional intention to exercise the option for the first year and expressly stated that the notification under the contract did not constitute an extension or effective exercise of the option. The agency never exercised the option and the contract ended on its own terms. The Contractor may exercise options only after determining that: – (6) the Contractor`s previous performance evaluations have been taken into account with respect to other contractual measures; and The Government waives its unilateral right to exercise the option by failing to inform the Contractor of its intention to renew. This does not mean that the contractual option becomes null and void, but that it must be exercised bilaterally when properly exercised. (2) An informal price analysis or market analysis shows that the price of the option is better than the prices available on the market or that the option is the cheapest offer. (g) In the amendment of the contract or in any other written document informing the contractor of the exercise of the option, the option clause shall be cited as the authority. (a) The contract shall set the limits on the purchase of additional supplies or services or the total duration of the contract, including any renewals; Question 1. What is the effective date? When you exercise an option, the work is usually already done (this is the case in your situation).
There is already a period of contractual performance. The current performance of the contract will be continued until the end of the contractually agreed period. You exercise the option at some point before the end of the performance period, as described in the terms and other terms of your contract. By exercising the option, you will reinstate the effective date in accordance with the terms and other terms of your contract. The effectiveness must already be specified in the option. (a) The Government may extend the term of this contract by written notification to the contractor within ___ [insert period within which the contract agent may make use of the possibility]; provided that the Government notifies the contractor in writing before the end of the contract of its intention to extend by at least ___ days [60 days, unless another number of days is inserted]. The notice does not require the government to extend it. In the wording of the section, we must inform 60 days after the option is granted that the government intends to exercise its option. This written notice would usually be a letter (an email would suffice, although we prefer the signed letter for the file). With respect to clause -8, the government does not have to inform the contractor in advance of its intention to exercise the option provided for in that clause.
Instead, the government is only required to notify the contractor in writing of the exercise of the option within the time limit set out in the clause. Under this clause, the government may exercise the option more than once, but the total extension of the contract under this clause cannot exceed six months. If clauses -9 and -8 are included in the same contract, it is not necessary for the options covered by clause -9 to be exercised before the options covered by clause -8 can be exercised. On the contrary, one or more options under clause -8 may be exercised before an option is exercised under clause -9. (b) The contract shall specify the period within which the option may be exercised. The date of entry into force of an option should already be set in the Treaty. It must take place immediately after the end of the current performance phase, so that there is no interruption in performance. The date of issue and signature must be identical or almost identical as far as possible.
Then, options can be included in any type of contract, regardless of how the contract is evaluated. Thus, an option can be included in supply, service and construction contracts. If the contract includes an option for additional deliveries, the option usually specifies an additional amount of deliveries that can be obtained by exercising the option. In this regard, there does not appear to be a minimum or maximum limit on the quantity of supplies that can be obtained by exercising an option. If the contract is for services, the option can be specified as the number of services (e.B. Number of requests to be processed or period during which the services are to be provided). Whether it is additional supplies or services, the price and valuation must have been set at the time of the initial award to ensure compliance with the Competition Act (“CICA”) and to ensure that the contract has been awarded to the supplier that provides the best value to the government. In this regard, an option is not a separate contract. When exercised, the contract containing the option is amended to include the new work.
Thus, the option depends on the terms of the contract. There are several sections in Part 52 of the FAR that deal with the exercise of options. For the purposes of this article, we will only look at the two that deal with service contracts, FAR 52.217-8, Service Extension Option, and FAR 52. 217-9, Option to extend the term of the contract. Clause -9 requires the government to notify the contractor in writing of its intention to exercise the option a certain number of days before the contract expires. This has been interpreted as meaning that the Contractor must receive notice within the contractually agreed period. If the contractor does not receive the notification in time, any attempt to exercise the option is ineffective. If all these circumstances cannot be confirmed, the Contract Agent may not exercise the option. (c) the time limit shall be set in such a way as to allow the contractor a reasonable period of time to ensure continuous production. The Federal Procurement Regulations (“FAR”) 2.101 define an “option” as “a unilateral right in a contract by which the government may decide, for a specified period of time, to purchase additional supplies or services required by the contract or to elect to extend the term of the contract.” There are a few important points in this definition. First, that an option is a unilateral right that is transferred to the government. This means that the government is not contractually obligated to exercise this option.
Instead, the government may choose not to exercise this option. If the government decides not to exercise an option, the contractor generally has no recourse because failure to exercise an option does not constitute termination of the contract. On the other hand, if the government decides to exercise an option, the contractor is required to provide performance; Otherwise, the contractor may be in default with all associated consequences (p.B a bad CPARS, potentially excess replacement costs, negative agents and certificates, etc.). The English understanding of “inside” is “inside”. Nor does the FAR define the term “inside”. It is correct to understand the wording of the clause so that “within 30 days” (or regardless of the number of days (less than 60) is always 30 days or less. However, paragraph 17.204(c) states that the government must give the contractor sufficient time. .