Option years
Also called: Option periods, Contract options, Base plus options
Updated
What is Option years?
Option years are periods after the base period that the government may choose to add to a contract, at terms and prices set when the contract was awarded. The government is not required to exercise them. A common structure is one base year plus four option years, and most evaluations count the option prices.
How options work
FAR subpart 17.2 governs options. The solicitation states the option periods and prices them on their own CLINs; the contracting officer may exercise each option by written notice within the time the contract allows, if funds are available and the option is still the most advantageous way to meet the need. For services, the total period including options is normally limited to five years (FAR 17.204).
Two common clauses: FAR 52.217-8 lets the government extend services for up to six months, often used as a bridge before a new contract starts, and FAR 52.217-9 sets the option to extend the term and the notice periods.
Options in your proposal and price
Unless the solicitation says otherwise, the government evaluates option prices together with the base price (FAR 17.206), so price every option year carefully, with realistic escalation for labor rates. Unbalanced pricing, a low base and high options, can be found risky or unacceptable.
Do not count option years as guaranteed revenue in the bid decision. Agencies decline options for budget or performance reasons, and the CPARS record of the base year often influences whether options are exercised.
Option years in ProposalWorkspace
ProposalWorkspace reads the whole solicitation with a page citation on every requirement, so the period of performance and option terms can be checked against the page they come from, and the outline puts the price volume where Section L asks for it.
Option years: questions and answers
Does the government have to exercise option years?
No. An option is the government's right, not an obligation. It may decline an option because of budget, changing needs or performance.
Are option years included in the price evaluation?
Usually yes. FAR 17.206 has the government evaluate options at award unless the contracting officer decides that is not in its interest, and the solicitation says which applies.
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