FAR 52.217-5 - Evaluation of Options

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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:	Provision Except 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

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Personal notes.