48 C.F.R. PART 517—SPECIAL CONTRACTING METHODS
Title 48 - Federal Acquisition Regulations System
Authority: 40 U.S.C. 486(c).
Source: 64 FR 37218, July 9, 1999, unless otherwise noted.
Use of FAR 52.217–2, Cancellation Under Multi-year Contracts, is optional in multiyear contracts authorized by 40 U.S.C. 490(a)(14) for maintenance and repair of fixed equipment in federally-owned buildings and services and 40 U.S.C. 481(a)(3) for public utility services. (a) This subpart applies to all GSA contracts for supplies and services, including: (1) Services involving construction, alteration, or repair (including dredging, excavating, and painting) of buildings, bridges, roads, or other kinds of real property. (2) Architect-engineer services. (b) If a requirement in this subpart is inconsistent with FAR 17.2, this subpart takes precedence. (a) Supplies or services. (1) You should use options when they meet one or more of the following objectives: (i) Reduce procurement lead time and associated costs. (ii) Ensure continuity of contract support. (iii) Improve overall contractor performance. (iv) Facilitate longer term contractual relationships with those contractors that continually meet or exceed quality performance expectations. (2) An option is normally in the Government's interest in the following circumstances: (i) You anticipate a need for additional supplies or services during the contract term. (ii) Multiyear contracting authority is not available or its use is inappropriate and you anticipate a need for additional supplies or services beyond the initial contract term. (iii) There is a need for continuity of supply or service support. (iv) Funds are not available for the entirety of the Government's needs, but are likely to become available during the contract term. (v) The initial contract will be used to evaluate the performance of an emerging small business. (3) Do not use an option if the market price is likely to change substantially and an economic price adjustment clause inadequately protects the Government's interest. (b) Construction. For limitations on the use of options, see 536.213 and 536.270. A solicitation that includes an option to extend should inform offerors that the contract could result in a long term contractual relationship subject to both of the following conditions: (a) Continuing need by GSA. (b) Level of contract performance that at least meets GSA's quality performance expectations. Before exercising an option, you must: (a) Synopsize it unless you meet of the following conditions: (1) The option was evaluated as part of the original competition. (2) The contract action meets an exception in FAR 5.202. (b) Conclude that the contractor's performance under the contract met or exceeded the Government's expectation for quality performance, unless another circumstance justifies an extended contractual relationship. (c) Determine that the option price is fair and reasonable. (a) For solicitations under FSS's Stock or Special Order Program, insert a provision substantially the same as the provision at 552.217–70, Evaluation of Options, if both of the following conditions apply: (1) The solicitation contains an option to extend the term of the contract. (2) The contract will be fixed price and contain an economic price adjustment clause. (b) Insert the provision at 552.217–71, Notice Regarding Option(s), or a similar provision, in solicitations that include an option for increased quantities of supplies or services or an option to extend.
Title 48: Federal Acquisition Regulations System
PART 517—SPECIAL CONTRACTING METHODS
Section Contents
517.109 Contract clauses.
517.200 Scope of subpart.
517.202 Use of options.
517.203 Solicitations.
517.207 Exercise of options.
517.208 Solicitation provisions and contract clauses.
Subpart 517.1—Multiyear Contracting
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517.109 Contract clauses.
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Subpart 517.2—Options
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517.200 Scope of subpart.
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517.202 Use of options.
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517.203 Solicitations.
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517.207 Exercise of options.
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517.208 Solicitation provisions and contract clauses.
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