Contractor won't allow options or for their resellers

Ok, so this one software company will not allow for use of options for themselves or their resellers for maintenance and software distribution. We continue to ask for a policy letter or statement that allows them to do so for government contracts. All he can say for himself is "We do not allow options, unless you pay for the total amount at the time of contract award." I think this is bogus. They also don't sign government contracts either when we award anything to him, however, it's under the SAT so i believe 41.2 allows that.

Thoughts? Am i incorrect in this scenario?

If you're asking are you incorrect about whether you're allowed to award purchase orders under the SAT unilaterally, the answer is you are correct. However, the contractor is under no obligation to undertake performance, although, if he does so, that creates a binding contract, almost as if he signed it. Not sure what "41.2" refers to.

The issue I don't know about is if you included options in your purchase order, and the contractor performed the work and delivered what was ordered, is the contractor bound to perform if you exercise the option? Or, since exercising an option is a unilateral action, is that tantamount to issuing another unilateral purchase order that the contractor may or may not accept?

I think you are incorrect on the contractor's statement about not allowing options being "bogus." The contractor is well within his rights to reject orders that include options.

All he can say for himself is "We do not allow options, unless you pay for the total amount at the time of contract award." I think this is bogus. They also don't sign government contracts either when we award anything to him, however, it's under the SAT so i believe 41.2 allows that.

Thoughts? Am i incorrect in this scenario?

Look, he doesn't want to accept your terms and you can't compel him to do so. Either propose different terms or find someone else willing to accept your terms.

I deal with a lot of software (and software maintenance) buys, it is is pretty common for companies (especially big companies) not to provide option year pricing unless you are willing to pay for more than a year of service in advance, which wouldn't be an option.