Easily Insert Option Field into the Performance Contract

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How to Insert Option Field into the Performance Contract

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What is the difference between FAR 52.217-8 and FAR 52.217-9?

FAR Subpart 17.2 prescribes two primary clauses for service contracts: (1) 52.217-8 for short term extensions up to six months, typically used for situations outside the contracting offices control when a new contract cannot be awarded on time, and (2) 52.217-9, which normally results in one or more annual options.

Is 52.217-8 unilateral or bilateral?

Answer. Question 1) your understanding is correct, FAR 52.217-8 gives the contracting officer the unilateral right to exercise the option as long as you are still within the notification period identified in the last sentence.

What is the purpose of the Continuity of Services clause?

(a) The Contractor recognizes that the services under this contract are vital to the Government and must be continued without interruption and that, upon contract expiration, a successor, either the Government or another contractor, may continue them.

What is an option in contracting?

An options contract is an agreement between two parties to facilitate a potential transaction on an underlying security at a preset price, referred to as the strike price, prior to or on the expiration date.

What is the FAR clause 52.217-8 and 52.217-9?

52.2178 Option To Extend Services. The Con- tracting Officer may exercise the option by written notice to the Contractor withinl [insert the period of time within which the Contracting Officer may exercise the op- tion]. 52.2179 Option To Extend the Term of the Contract.

What is an example of an option?

Example of an Option. Suppose that Microsoft (MFST) shares trade at $108 per share and you believe they will increase in value. You decide to buy a call option to benefit from an increase in the stocks price. You purchase one call option with a strike price of $115 for one month in the future for 37 cents per contact.

What is the purpose of FAR 52.217-8?

FAR 52.217-8 allows the government to extend services without negotiating short extensions to existing contracts in circumstances, such as those here, where the award of a successor contract is delayed.

What is the difference between FAR 52.217-8 and 52.217-9?

FAR Subpart 17.2 prescribes two primary clauses for service contracts: (1) 52.217-8 for short term extensions up to six months, typically used for situations outside the contracting offices control when a new contract cannot be awarded on time, and (2) 52.217-9, which normally results in one or more annual options.

What is 48 CFR 52.217-8?

52.217-8 Option To Extend Services. The Government may require continued performance of any services within the limits and at the rates specified in the contract.

How is an option different from other contracts?

The key distinction between an options contract and a firm offer is that the options contract is merely an open-ended contract that is primarily supported by consideration and a designated time frame. It need not be a contract for the sale of goods.

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