Options on Orders Placed against Schedule Contracts and BPAs

Options may be included on orders placed against Schedule contracts, if the options are clearly stated in the requirement and are evaluated as part of the ordering activity’s “Best Value” determination. Such options may be exercised on Schedule contract orders, provided that:

• Funds are available
• The requirement covered by the option fulfills an existing government need
• Prior to exercising an option, the ordering activity ensures that it is still in the government’s best interest, with price and other factors considered
• The options do not extend beyond the period of the Schedule contract, including option year periods
• FAR clause 52.217-9 is completed and provided in the RFQ

The length of the order and the risk to the ordering activity could be considered as part of the overall evaluation of best value.

NUTS AND BOLTS TIP

Options need not be included in multiple-award BPAs (FAR 8.405-3 does not require them). However, the BPAs must be reviewed on an annual basis as described in FAR 8.405-3(d). Multiple- award BPAs generally do not exceed five years, but may do so to meet program requirements.

Single award BPAs may include up to four, one-year options; however prior to exercising each option the ordering activity competition advocate must approve the extension.