[Code of Federal Regulations]

[Title 48, Volume 4]

[Revised as of October 1, 2006]

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

[CITE: 48CFR317.201]



[Page 50]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                  CHAPTER 3--HEALTH AND HUMAN SERVICES

 

PART 317_SPECIAL CONTRACTING METHODS--Table of Contents

 

                          Subpart 317.2_Options

 

Sec. 317.201  Definitions.





    An option must:

    (a) Identify the supplies or services as a discrete option quantity 

in addition to the basic quantity of supplies or services to be 

delivered under the initial contract award;

    (b) Establish a price or specify a method of calculation which will 

make the price certain;

    (c) Be agreed to and included in the initial contract award; and

    (d) Permit the Government the right to exercise the option 

unilaterally.