52.217-3
Evaluation Exclusive of Options
When FAR 52.217-3 is included, only the base contract price is evaluated for award—option prices are excluded from consideration.
Overview
FAR 52.217-3, "Evaluation Exclusive of Options," establishes that when this provision is included in a solicitation, the Government will evaluate offers for award purposes based solely on the price of the basic requirement, excluding any option prices. This provision is used when the solicitation contains an option clause but does not require evaluation of options under other specified provisions. Its purpose is to clarify to offerors that only the base contract price will be considered in determining the awardee, not the potential cost of any options that may be exercised later.
Key Rules
- Evaluation of Offers
- Only the price for the basic requirement is considered for award; option prices are excluded from the evaluation.
- Provision Usage
- This provision is inserted when a solicitation includes an option clause but does not require evaluation of options under FAR 17.208(b) or (c).
Responsibilities
- Contracting Officers: Must ensure this provision is included in applicable solicitations and that evaluations are conducted exclusive of option prices.
- Contractors: Should price their basic requirement competitively, understanding that option prices will not affect award decisions.
- Agencies: Must ensure compliance with evaluation procedures and proper use of the provision.
Practical Implications
- This provision ensures transparency in how offers are evaluated, preventing confusion about whether option prices will influence award decisions.
- Contractors should focus on making their base offer as competitive as possible, since options will not be considered in the initial evaluation.
- Common pitfalls include misunderstanding the evaluation process or incorrectly assuming option prices will impact award selection.