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SAMPLE TEMPLATE

Determination and Findings - Exercise Option Period {Enter number}

Contract Number: {Insert number}

FINDINGS

The determination to exercise the option for a period of {Insert number} months has been made in accordance with FAR 17.207, “Exercise of Options.”

The option contract performance period will be from {mm/dd/yy}, through {mm/dd/yy}, for {Insert name of requirement /contract Line Item}.

Funding for the option has been provided on requisition {Insert the number} for

$ {insert amount}, dated {mm/dd/yy}. The exercise of the option fulfills an existing need of the Government.

Exercise of the option is in accordance with the option clause included in the base contract.

To satisfy requirements of FAR Subparts 5, 6 or 8 regarding competition, the option was evaluated as {insert findings} e.g., “part of the initial competition and exercisable at a specific dollar amount specified in the terms of the basic contract,” or “ was posted on GSA E-buy.”}

FAR Subpart 17.207 authorizes exercising of an option after determining that:

(a) The requirement covered by this option fulfills an existing Government need.

(b) Exercising of this option is the most advantageous method of fulfilling the Government's needs, based on the following:

Fairness and reasonableness of the price is based on the fact that {Insert findings} e.g.,“the contractor's prices for this option period remain the same as the previous option period, and the pricing is based on the contractor’s GSA schedule. During the evaluation phase, all offerors price proposals for the entire contract period were evaluated, and at that time, those prices were also determined fair and reasonable. Therefore, in evaluating price, it is most advantageous to government to exercise the option period.” or “The need for the service was determined when the contract was awarded and the requirements have not changed. This is a continuing service and the need for the Government’s continuity of operations and potential costs of disrupting operations was considered, or “A new solicitation failed to produce a better or more advantageous offer.” or “An informal analysis of prices and an examination of the market indicate that the option price is better than prices available in the market and the option is the more advantageous offer. It would be more costly to conduct a re-compete at this time.

This contract provides recurring services. Recompeting this contract yearly would require additional time and expense and reduce the continuity in operation necessary in obtaining maximum performance. Initiating a new procurement does not support a decision to decline exercise of the option.

5.This office has complied with the requirements of FAR Part 8 regarding comparison. This requirement was posted on GSA E-buy, and three vendors responded. A contract modification to exercise this option is within the scope of the contract.

6.The contractor was provided written notification of the Contracting Officer's intent to exercise the option as prescribed by FAR Subpart 52.217-9 on {mm/dd/yy} or explain why the notification was not provided}.

8.The contractor is performing satisfactorily.

9.The contractor is considered responsible in accordance with the standards of FAR Subpart 9.104.

10.The contractor is not on the consolidated list of Debarred, Suspended, and Ineligible Contractors pursuant to FAR Subpart 9.4. Reference verification of the data check in the contract file, on the Contract File Index under Tab {Insert number}.

DETERMINATION

Based upon the findings, it is determined that exercising Option Period {Insert number}, at the contract proposed prices, is the most advantageous method of fulfilling the Government’s need, with price and other factors considered, and is appropriate and authorized and prescribed be FAR Subpart 17.207.

{Signature of Contracting Officer} ______

Contracting OfficerDate