Contracting Officer Unlimited Warrant Board
1. What is an option? An option is a unilateral right in a contract, for a specific period of time,
where the Government may elect to purchase additional supplies or services called for by the
contract, or extend the period of performance.
2. When should options be used? The PCO should use options when (1) in the Governments best
interest, (2) there is a need for service beyond the initial period, and (3) to ensure continuity of
service.
3. When is it not beneficial to use options? The use of options are not normally in the
Governments best interest when (1) The foreseeable requirements involve minimum economic
quantities and delivery requirements are far enough in the future to permit competitive
acquisition, production, and delivery (2) an indefinite quantity or requirements contract would
be more appropriate than a contract with options.
4. What must a PCO do before exercising an option? The PCO must determine that:
a. Funds are available
b. The requirement fulfills an existing Government need
c. Exercising the option is the most advantageous method price and other factors considered
d. The option was synopsized IAW FAR 5 (or exempted)
The PCO should have a written D&F in the file in order to use options The PCO should also
consider if the contractor is responsible and if their performance is satisfactory. 5. If the option
price during a competitive source selection was not evaluated, is the option valid? No. All options
need to be priced because they were awarded on a competitive basis. 6. Can the PCO cite the
"Changes Clause" to increase quantities on a production contract? No. The Changes Clause cannot
be used to increase quantities on a production contract.
(a) The Contracting Officer may at any time, by written order, and without notice to the sureties,
if any, make changes within the general scope of this contract in any one or more of the
following:
(1) Drawings, designs, or specifications when the supplies to be furnished areto be specially
manufactured for the Government in accordance with the drawings, designs, or
specifications.
(2) Method of shipment or packing.
(3) Place of delivery.
7. Is any approval required for an effort that is out of scope? Changes outside the scope of the
original contract are considered new work and constitute a cardinal change, and in this case,
one of two things should happen:
1. Compete the new work
2. Get a J&A and seek proper approva