Extend OY 3 but not exercise OY 4

Why not exercise the option, and then do a termination for convenience at the appropriate time?

LOML said:

Can we extend the POP for OY3 by less than 12 months (current OY 3 PoP is ending in early March 2024) and not exercise OY4?

This is a SIBR IDIQ CPFF for labor. If we exercise OY 4, we are obligated to see it through until the end of the PoP.

Random thoughts as more details would be helpful....

By any chance is FAR 52.217-8 in the parent IDI!Q contract?  If so I would think one could extend the services of OY 3 for whatever the length that is stated in the -8 clause without having to excercise OY 4.

You say IDIQ.   If the parent IDIQ is the basis for your question why not exercise OY 4 and just ride it out to the end?   I say this as typically the parent IDIQ obligates nothing including the requirement to issue task orders during the option period because generally it is the governments unilateral right to issue a task order.  Heck I might even tell the contractor what I am up to for the sake of good communication and fairness.  Example - We are exercising OY 4 but our plan is that no task orders will be issued after the first month of the new option.  

You also say SBIR.   Was it a sole source SBIR?  If so then then you might even consider just modifying by mutual agreement with the contractor the last optioin period (OY 4) of the contract.   Of course things like maintaining the same cost structure, fee adjustment, and a bunch of other stuff comes into play.  Remember any contract can be modified by mutual agreement of the parties.

LOML said:

Can we extend the POP for OY3 by less than 12 months (current OY 3 PoP is ending in early March 2024) and not exercise OY4?

Why not exercise OY 4?  You say the contract is an IDIQ contract.  Are you obligated to place any orders in OY 4 or 3?  If not, what is the big deal?