Overview
FAR Subpart 17.2 outlines the policies and procedures for incorporating and exercising options within federal solicitations and contracts. It establishes the regulatory framework for using standard option provisions and clauses while identifying specific categories of work that fall outside its mandatory application.
Key Rules
- Regulatory Purpose: This subpart dictates how agencies should draft and manage solicitation provisions and contract clauses related to options.
- Mandatory Exclusions: Unless otherwise specified by agency-specific regulations, the procedures in this subpart do not apply to:
- Construction: Contracts for the construction, alteration, or repair of real property (including painting, dredging, and excavating).
- Architect-Engineer (A&E) Services: Professional services related to infrastructure and building design.
- Research and Development (R&D): Services focused on scientific and technical innovation.
- Permissive Use: While the subpart’s specific procedures do not apply to the excluded categories above, it explicitly states that the use of options in those types of contracts is not prohibited.
Practical Implications
- Flexibility for Specialized Contracts: Contracting Officers managing R&D, A&E, or Construction projects are not strictly bound by the procedural requirements of FAR 17.2 (such as specific evaluation rules), allowing for more customized option structures based on agency-level guidance.
- Standardized Compliance: For general supplies and services not listed in the exclusions, strict adherence to this subpart is required to ensure that options are legally valid, properly evaluated during the source selection process, and enforceable upon exercise.