17.208
Solicitation provisions and contract clauses
FAR 17.208 mandates the inclusion of specific option-related clauses in solicitations and contracts to ensure proper evaluation and exercise of contract options.
Overview
FAR 17.208 prescribes the specific solicitation provisions and contract clauses that must be included when options are used in government contracts. It details which FAR clauses to insert based on the type of contract, the likelihood and timing of option exercise, and whether the contract is for goods or services. The section ensures that both the government and contractors understand how options will be evaluated and exercised, and that contracts are structured to allow for flexibility and compliance with federal acquisition policies.
Key Rules
- Evaluation of Options Provisions
- Use FAR 52.217-3, 52.217-4, or 52.217-5 in solicitations with option clauses, depending on whether options are likely to be exercised and when.
- Option for Increased Quantity (Goods)
- Insert FAR 52.217-6 or 52.217-7 for goods contracts when options are for increased quantities, either as a percentage or as a separately priced line item.
- Option to Extend Services
- Use FAR 52.217-8 in service contracts when an option to extend services is appropriate.
- Option to Extend the Term of the Contract
- Use FAR 52.217-9 when the contract may require preliminary notice, extension of options, or a limit on total contract duration.
Responsibilities
- Contracting Officers: Must determine which option clauses apply, document likelihood of option exercise, and ensure correct clauses are included in solicitations and contracts.
- Contractors: Should review solicitations for applicable option clauses and understand their implications for pricing and performance.
- Agencies: Oversee compliance with clause inclusion and documentation requirements.
Practical Implications
- This section ensures clarity and consistency in how options are handled in federal contracts, reducing disputes and misunderstandings.
- Contractors must pay close attention to which option clauses are included, as they affect evaluation, pricing, and contract performance.
- Common pitfalls include failing to include the correct clause or not documenting the rationale for option exercise, which can lead to compliance issues.