SU-125 – Options in a Service Contract Environment
Many service contracts are structured so the government may unilaterally, and without competition, extend service contracts beyond the basic period of performance. While there are some exceptions, a service contract may have options which permit agencies to extend service up to five (5) years.
This course will focus on:
- Government consideration when determining where or not to include options in a contract
- Deciphering of option related clauses included in a service contract
- The roles and responsibilities of the government and contractor when an option is exercised
- What occurs when the option is not exercised
- Why the government may not exercise and option and the effect on the contractor
- The untimely or unauthorized exercise of an option and the effect on a contractor