52.217-5 Evaluation of Options.
Prescription and Applicability
FAR Prescription, 17.208(c)
(c) Insert a provision substantially the same as the provision at 52.217-5, Evaluation of Options, in solicitations when-
(1) The solicitation contains an option clause;
(2) An option is not to be exercised at the time of contract award;
(3) A firm-fixed-price contract, a fixed-price contract with economic price adjustment, or other type of contract approved under agency procedures is contemplated; and
(4) The contracting officer has determined that there is a reasonable likelihood that the option will be exercised. For sealed bids, the determination shall be in writing.
DFARS Supplementary Guidance, 217.208
Sealed bid solicitations shall not include provisions for evaluations of options unless the contracting officer determines that there is a reasonable likelihood that the options will be exercised (10 U.S.C. 3206(e)). This limitation also applies to sealed bid solicitations for the contracts excluded by FAR 17.200.
Current Text
52.217-5 Evaluation of Options.
As prescribed in 17.208(c), insert a provision substantially the same as the following:
Evaluation of Options (JUL 1990)
Except when it is determined in accordance with FAR 17.206(b) not to be in the Government's best interests, the Government will evaluate offers for award purposes by adding the total price for all options to the total price for the basic requirement. Evaluation of options will not obligate the Government to exercise the option(s).
(End of provision)
[53 FR 17860, May 18, 1988, as amended at 55 FR 25532, June 21, 1990; 69 FR 59704, Oct. 5, 2004]
Suggested Questions
You can ask your AI assistant:
- Should I include this provision in my solicitation?
- Does this clause apply to commercial acquisitions?
- Does this clause apply to R&D contracts under Part 35?
- Which alternate should I use for a multiple-award contract?
- Are there any active Class Deviations that modify this clause?
- What changed in the most recent amendment?