FAR 52.217-5 - Evaluation of Options
Prescribed in 17.208(c) | |
Effective Date: | 1 July 1990 |
Clause or Provision: | Provision |
Provision or Clause Number: | 52.217-5 - Evaluation of Options |
Principle Type And/Or Purpose of Contract: | |
Required: | |
Applicable: | Time and Materials/Labor Hour; Fixed Price, Supply; Cost Reimbursement, Supply; Leasing of Motor Vehicles; Time & Material/Labor Hour; Fixed Price, Construction; Cost Reimbursement, Service; Indefinite Delivery; Transportation |
Optional: | Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Facilities; Dismantling, Demolition or Removal of Improvements; Fixed Price, Construction; Cost Reimbursement, Construction |
Subject: | Options |
ProcurementType: | |
Contract Threshold: | |
Prescription Overview: |
Prescription(c) Insert a provision substantially the same as the provision at 52.217-5, Evaluation of Options, in solicitations when— (1) The solicitation contains an option clause; (2) An option is not to be exercised at the time of contract award; (3) A firm-fixed-price contract, a fixed-price contract with economic price adjustment, or other type of contract approved under agency procedures is contemplated; and (4) The contracting officer has determined that there is a reasonable likelihood that the option will be exercised. For sealed bids, the determination shall be in writing. |
Clause Overview: |
ProvisionExcept when it is determined in accordance with FAR 17.206(b) not to be in the Government’s best interests, the Government will evaluate offers for award purposes by adding the total price for all options to the total price for the basic requirement. Evaluation of options will not obligate the Government to exercise the option(s). |
Important Notes/Requirements: | |
Subcontract Threshold: | |
Incorporated by Reference: | Yes |
Uniform Contract Format: | M |
Editor: | Marshall |
Personal notes.