52.217-9
Option to Extend the Term of the Contract
FAR 52.217-9 requires the government to provide advance written notice before extending a contract and sets clear limits on total contract duration, ensuring both parties are informed and compliant with extension procedures.
Overview
FAR 52.217-9, "Option to Extend the Term of the Contract," provides the standard clause for allowing the government to extend a contract's period of performance. This clause outlines the procedures and requirements for exercising contract options, including advance notice to the contractor and the maximum allowable contract duration. Its purpose is to give agencies flexibility to continue services or supplies without initiating a new procurement, while ensuring contractors are informed and prepared for possible extensions.
Key Rules
- Advance Written Notice
- The government must provide a preliminary written notice of its intent to extend the contract at least a specified number of days (default is 60) before contract expiration.
- Formal Exercise of Option
- The government must formally notify the contractor in writing within the specified option exercise period to extend the contract.
- Contract Duration Limit
- The total contract duration, including all exercised options, cannot exceed the maximum period stated in the contract (in months or years).
Responsibilities
- Contracting Officers: Must issue timely preliminary and formal notices, and ensure total contract duration does not exceed the stated maximum.
- Contractors: Must monitor for government notices and be prepared to continue performance if the option is exercised.
- Agencies: Must track contract timelines and ensure compliance with notice and duration requirements.
Practical Implications
- This clause ensures both parties are aware of potential extensions and the process for exercising options.
- Contractors should track notice deadlines and clarify option periods to avoid confusion or missed opportunities.
- Common issues include missed notice deadlines or exceeding the maximum contract duration, which can result in non-compliance or contract disputes.