Overview
This section mandates that contracting officers provide formal written justifications for the inclusion and structure of options within a contract and ensures that all competition-related approvals cover the full potential scope of the procurement.
Key Rules
- Written Justification: The contracting officer (CO) must document the rationale for the specific quantities or terms under option, the notification period required to exercise them, and any price limitations established under FAR 17.203(g).
- Contract File Requirement: All justifications regarding options must be physically or electronically included in the official contract file to maintain an audit trail.
- Full Scope Coverage: Any Justifications and Approvals (J&As) or Determinations and Findings (D&Fs) required by FAR Part 6 (Competition Requirements) must account for both the base requirement and the maximum potential increase/extension provided by the options.
Practical Implications
- Audit Readiness: Contracting officers cannot arbitrarily add options; they must build a record that justifies why the specific option structure is in the government's best interest.
- Competition Compliance: By requiring J&As to cover the full potential value (base plus options) upfront, this rule prevents "scope creep" and ensures that the total contract value is legally competed or justified as a sole-source action from the outset.