Contract Add Option Field For Free

FAR 52.217-8 allows the government to extend services without negotiating short extensions to existing contracts in circumstances, such as those here, where the award of a successor contract is delayed.

FAR Subpart 17.2 prescribes two primary clauses for service contracts: (1) 52.217-8 for short term extensions up to six months, typically used for situations outside the contracting office's control when a new contract cannot be awarded on time, and (2) 52.217-9, which normally results in one or more annual options.

The federal government's goal is to award five percent of all prime and subcontracting dollars to small disadvantaged businesses each year. To help meet that goal, you can make set-asides awards for businesses that participate in the 8(a) Business Development program.

(5) An agency may not award an 8(a) sole source contract for an amount exceeding $25,000,000, or $100,000,000 for an agency of the Department of Defense, unless the contracting officer justifies the use of a sole source contract in writing and has obtained the necessary approval under the Federal Acquisition Regulation ...

The clause states: The Government may require continued performance of any services within the limits and at the rates specified in the contract.

The 8(a) program is a robust nine-year program created to help firms owned and controlled by socially and economically disadvantaged individuals. Businesses that participate in the program receive training and technical assistance designed to strengthen their ability to compete effectively in the American economy.

An options contract is an agreement between two parties to facilitate a potential transaction involving an asset at a preset price and date. Call options can be purchased as a leveraged bet on the appreciation of an asset, while put options are purchased to profit from price declines.