OPTION DETERMINATION Clause Samples
The Option Determination clause defines the process by which one or more parties may exercise a contractual option, such as extending a term, purchasing additional goods or services, or triggering a specific right. Typically, this clause outlines the conditions under which the option can be exercised, the required notice period, and any formalities or documentation needed to make the option effective. Its core practical function is to provide a clear and enforceable mechanism for activating optional rights or obligations within the contract, thereby reducing uncertainty and potential disputes about how and when such options can be utilized.
OPTION DETERMINATION. After the initial contract term of 5 years, OASIS SB has included an option to extend the term of the contract in order to demonstrate the value it places on quality performance by providing a mechanism for continuing a contractual relationship with a successful Contractor that performs at a level which meets or exceeds GSA’s quality performance expectations. In recognition of exceptional contract and task order performance of a particular Contractor during their initial 5 year term of performance, the Government will consider exercising a Contractor’s Option I, for an additional 5 year term of performance. The option determination for each Contractor will be based on FAR Subpart 17.207 for exercising the option term; the overall quality of the Contractor’s past performance under OASIS SB and task orders awarded against OASIS; meeting the deliverable and compliance standards; and maintaining a strategic partnership between the OASIS SB Contractors, GSA personnel, and Federal customers to identify and achieve reciprocal goals.
OPTION DETERMINATION. After the initial ordering period of five years, the HCaTS PMO has included one five-year option to extend the ordering period of the HCaTS contracts in order to demonstrate the value the HCaTS PMO places on quality performance by providing a mechanism for continuing a contractual relationship with a successful Contractor that performs at a level which meets or exceeds the HCaTS PMO’s quality performance expectations. In recognition of exceptional contract and task order performance of a particular Contractor during their initial five-year term of performance, the HCaTS PMO will consider exercising a Contractor’s Option 1 for an additional five years. The HCaTS CO will exercise Option 1 in accordance with FAR 52.217-9. If necessary, the HCaTS PMO has also included one six-month option to extend the ordering period of HCaTS contracts in accordance with FAR 52.217-8. The option determination for each Contractor will be based on:
1. FAR Section 17.207 for exercising the option, and
2. The overall quality of the Contractor’s past performance under the HCaTS contract and task orders awarded against the HCaTS contract, and
3. Meeting the deliverable and compliance standards, and
4. Maintaining a strategic partnership between HCaTS Contractors, HCaTS PMO, Government personnel, and Federal customers to identify and achieve reciprocal goals.
OPTION DETERMINATION. After the initial contract term of 5 years, BMO has included an option to extend the term of the contract in order to demonstrate the value it places on quality performance by providing a mechanism for continuing a contractual relationship with a successful Contractor that performs at a level which meets or exceeds GSA’s quality performance expectations. In recognition of exceptional contract and task order performance and demonstration of fair and reasonable pricing of a particular Contractor during their initial 5 year term of performance, the Government will consider exercising a Contractor’s Option 1 for an additional 5 year term. The option determination for each Contractor will be based on FAR Subpart 17.207 for exercising the option term; the overall quality of the Contractor’s past performance under BMO and task orders awarded against BMO; meeting the deliverable and compliance standards; and maintaining a strategic partnership between the BMO Contractors, GSA personnel, and Federal customers to identify and achieve reciprocal goals.