52.217-8
Option to Extend Services
FAR 52.217-8 allows the government to extend service contracts for up to six months at existing rates, with limited adjustments, by providing written notice to the contractor.
Overview
FAR 52.217-8, "Option to Extend Services," allows the government to require a contractor to continue providing services beyond the original contract period, for up to six additional months. This clause gives the Contracting Officer the authority to extend services at the rates specified in the contract, with adjustments only permitted for changes in prevailing labor rates as determined by the Secretary of Labor. The option can be exercised multiple times, but the total extension period cannot exceed six months. The Contracting Officer must provide written notice to the contractor within a specified timeframe, which is determined and filled in at the time of contract award.
Key Rules
- Extension Authority
- The government can require continued performance of services for up to six months beyond the contract period.
- Rate Adjustments
- Service rates remain as specified in the contract, unless adjusted due to changes in prevailing labor rates.
- Exercise of Option
- The option can be exercised more than once, but total extensions cannot exceed six months.
- Written Notice Requirement
- The Contracting Officer must notify the contractor in writing within the contractually specified period to exercise the option.
Responsibilities
- Contracting Officers: Must ensure the clause is included in applicable contracts, specify the notice period, and provide written notice to exercise the option.
- Contractors: Must continue providing services if the option is exercised and comply with the specified rates and any allowable adjustments.
- Agencies: Should oversee proper use of the extension option and ensure compliance with labor rate adjustments.
Practical Implications
- This clause provides flexibility for agencies to extend services temporarily without a new procurement.
- Contractors should be prepared for possible extensions and understand the limits on rate adjustments.
- Common issues include misunderstanding the maximum extension period or failing to provide timely written notice.