52.217-7 Option for Increased Quantity-Separately Priced Line Item
Source: FAR 52.217-7 on acquisition.gov
FAR 52.217-7 enables the government to increase contract quantities for separately priced line items by written notice within a specified period, requiring contractors to deliver at the agreed rate and price.
Overview
FAR 52.217-7 provides a standard clause for contracts where the government may require additional quantities of a separately priced line item, as specified in the contract schedule. This clause allows the Contracting Officer to exercise an option for increased quantity by providing written notice to the contractor within a specified timeframe. The delivery of these additional items must occur at the same rate as similar items in the contract, unless otherwise agreed by both parties. The clause ensures flexibility for the government to increase quantities without renegotiating the entire contract, while providing clear procedures for notification and delivery.
Key Rules
- Option for Increased Quantity
- The government can require delivery of additional quantities of a specified line item at the price and quantity stated in the contract schedule.
- Exercise of Option
- The Contracting Officer must provide written notice to the contractor within a defined period to exercise the option.
- Delivery Rate
- Additional items must be delivered at the same rate as similar items in the contract, unless both parties agree to a different schedule.
Responsibilities
- Contracting Officers: Must specify the option period in the contract and provide timely written notice to exercise the option.
- Contractors: Must deliver the additional quantities at the agreed rate and price upon receipt of the written notice.
- Agencies: Ensure proper use and documentation of the option clause in applicable contracts.
Practical Implications
- This clause provides the government with flexibility to increase quantities as needed, supporting mission requirements without new procurements.
- Contractors must be prepared to fulfill additional quantities on the same terms, which can impact production planning and resource allocation.
- Failure to specify or adhere to the option period or delivery rate can lead to disputes or noncompliance.
As prescribed in 17.208(e), insert a clause substantially the same as the following:
Option for Increased Quantity-Separately Priced Line Item (Mar 1989)
The Government may require the delivery of the numbered line item, identified in the Schedule as an option item, in the quantity and at the price stated in the Schedule. The Contracting Officer may exercise the option by written notice to the Contractor within ______________________ [insert in the clause the period of time in which the Contracting Officer has to exercise the option]. Delivery of added items shall continue at the same rate that like items are called for under the contract, unless the parties otherwise agree.
(End of clause)