PGI 217.202 - Part52

This PGI section supplements: DFARS 217.202 · FAR 17.202

The corresponding FAR Part 17 and DFARS Part 217 have been overhauled under the RFO. PGI replacement text is provided in the RFO deviation attachment. View FAR Part 17

Current Content

(1) Options may be used for foreign military sales (FMS) requirements.

(2) For sole source major systems for U.S. and U.S./FMS combined procurements, contracting officers, in coordination with program managers, are encouraged to—

(i) Establish priced options for two years beyond the base year, so that negotiations of major systems will be conducted approximately every three years; and

(ii) In those cases where exact quantities are subject to variation, or FMS customers are not yet identified, establish range option pricing for both U.S. and FMS quantities.

(3) Consider use of surge options to support industrial capability. A surge option allows the Government, prior to final delivery, to—

(i) Accelerate the contractor's production rate in accordance with a surge production plan or a delivery schedule provided by the contractor under the terms of the contract; and

(ii) Purchase additional quantities of supplies or services.

(4) See DFARS Subpart 217.74 for limitations on the use of undefinitized options.

Change History

Detected	Type	Summary
detected 2026-04-17	[PGI] PGI_MODIFIED	PGI 217.202 updated: 8 lines added, 4 lines removed
View diff --- previous +++ current @@ -1,4 +1,8 @@ -(1) See PGI 217.202 for guidance on the use of options. -(i) See PGI 217.202 (1) for guidance on the use of options with foreign military sales (FMS). -(ii) See PGI 217.202 (2) for the use of options with sole source major systems for U.S. and U.S./FMS combined procurements. -(2) For a contract that is initially awarded from the competitive selection of a proposal resulting from a broad agency announcement, see 234.005-1 for the use of contract options for the development and demonstration or initial production of technology developed under the contract or the delivery of initial or additional items.+(1) Options may be used for foreign military sales (FMS) requirements. +(2) For sole source major systems for U.S. and U.S./FMS combined procurements, contracting officers, in coordination with program managers, are encouraged to-- +(i) Establish priced options for two years beyond the base year, so that negotiations of major systems will be conducted approximately every three years; and +(ii) In those cases where exact quantities are subject to variation, or FMS customers are not yet identified, establish range option pricing for both U.S. and FMS quantities. +(3) Consider use of surge options to support industrial capability. A surge option allows the Government, prior to final delivery, to-- +(i) Accelerate the contractor's production rate in accordance with a surge production plan or a delivery schedule provided by the contractor under the terms of the contract; and +(ii) Purchase additional quantities of supplies or services. +(4) See DFARS Subpart 217.74 for limitations on the use of undefinitized options.

Detected

Type

Summary

detected 2026-04-17

[PGI] PGI_MODIFIED

PGI 217.202 updated: 8 lines added, 4 lines removed

View diff

--- previous
+++ current
@@ -1,4 +1,8 @@
-(1) See PGI 217.202 for guidance on the use of options.
-(i) See PGI 217.202 (1) for guidance on the use of options with foreign military sales (FMS).
-(ii) See PGI 217.202 (2) for the use of options with sole source major systems for U.S. and U.S./FMS combined procurements.
-(2) For a contract that is initially awarded from the competitive selection of a proposal resulting from a broad agency announcement, see 234.005-1 for the use of contract options for the development and demonstration or initial production of technology developed under the contract or the delivery of initial or additional items.+(1) Options may be used for foreign military sales (FMS) requirements.
+(2) For sole source major systems for U.S. and U.S./FMS combined procurements, contracting officers, in coordination with program managers, are encouraged to--
+(i) Establish priced options for two years beyond the base year, so that negotiations of major systems will be conducted approximately every three years; and
+(ii) In those cases where exact quantities are subject to variation, or FMS customers are not yet identified, establish range option pricing for both U.S. and FMS quantities.
+(3) Consider use of surge options to support industrial capability. A surge option allows the Government, prior to final delivery, to--
+(i) Accelerate the contractor's production rate in accordance with a surge production plan or a delivery schedule provided by the contractor under the terms of the contract; and
+(ii) Purchase additional quantities of supplies or services.
+(4) See DFARS Subpart 217.74 for limitations on the use of undefinitized options.

Sources: Search on acquisition.gov · View on acq.osd.mil

PGI 217.202: Use of options.

Current Content

Change History