[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR17.203]



[Page 334-335]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 17_SPECIAL CONTRACTING METHODS--Table of Contents

 

                          Subpart 17.2_Options

 

Sec. 17.203  Solicitations.



    (a) Solicitations shall include appropriate option provisions and 

clauses when resulting contracts will provide for the exercise of 

options (see 17.208).

    (b) Solicitations containing option provisions shall state the basis 

of evaluation, either exclusive or inclusive of the option and, when 

appropriate, shall inform offerors that it is anticipated that the 

Government may exercise the option at time of award.

    (c) Solicitations normally should allow option quantities to be 

offered without limitation as to price, and there shall be no limitation 

as to price if the option quantity is to be considered in the evaluation 

for award (see 17.206).

    (d) Solicitations that allow the offer of options at unit prices 

which differ from the unit prices for the basic requirement shall state 

that offerors may offer varying prices for options, depending on the 

quantities actually ordered and the dates when ordered.

    (e) If it is anticipated that the Government may exercise an option 

at the time of award and if the condition specified in paragraph (d) 

above applies, solicitations shall specify the price at which the 

Government will evaluate the option (highest option price offered or 

option price for specified requirements).



[[Page 335]]



    (f) Solicitations may, in unusual circumstances, require that 

options be offered at prices no higher than those for the initial 

requirement; e.g., when (1) the option cannot be evaluated under 17.206, 

or (2) future competition for the option is impracticable.

    (g) Solicitations that require the offering of an option at prices 

no higher than those for the initial requirement shall--

    (1) Specify that the Government will accept an offer containing an 

option price higher than the base price only if the acceptance does not 

prejudice any other offeror; and

    (2) Limit option quantities for additional supplies to not more than 

50 percent of the initial quantity of the same contract line item. In 

unusual circumstances, an authorized person at a level above the 

contracting officer may approve a greater percentage of quantity.

    (h) Include the value of options in determining if the acquisition 

will exceed the World Trade Organization Government Procurement 

Agreement or Free Trade Agreement thresholds.



[48 FR 42231, Sept. 19, 1983, as amended at 53 FR 27464, July 20, 1988; 

58 FR 31141, May 28, 1993; 59 FR 545, Jan. 5, 1994; 64 FR 72419, Dec. 

27, 1999; 69 FR 1053, Jan. 7, 2004; 69 FR 77872, Dec. 28, 2004]