17.205
Documentation
Contracting officers must provide written justification and proper documentation for all contract options, ensuring transparency and compliance with FAR requirements.
Overview
FAR 17.205 outlines the documentation requirements for contracting officers when including options in government contracts. The section mandates that contracting officers must provide written justification for the quantities or terms of options, the notification period for exercising options, and any price limitations. This documentation must be included in the contract file. Additionally, any justifications, approvals, or determinations required under FAR Part 6 (regarding competition requirements) must address both the base contract and any increases allowed by the option. This ensures transparency and compliance with acquisition regulations when options are used.
Key Rules
- Written Justification for Options
- Contracting officers must document the rationale for option quantities/terms, notification periods, and price limitations, and file this justification with the contract.
- Inclusion in Justifications and Approvals
- Any required justifications, approvals, or determinations under FAR Part 6 must specify both the base contract requirements and the potential increases from options.
Responsibilities
- Contracting Officers: Prepare and file written justifications for all option-related terms and ensure all required approvals cover both base and option quantities.
- Contractors: Ensure that option terms are clearly defined and justified in contract documentation.
- Agencies: Oversee compliance with documentation and approval requirements for contracts with options.
Practical Implications
- This section ensures that the use of options in contracts is properly justified and documented, supporting transparency and regulatory compliance.
- Failure to document options appropriately can result in audit findings or contract challenges.
- Contracting professionals must be diligent in preparing and maintaining thorough records for all option-related decisions.