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Government’s right to exercise an Option Year

Started by arwink21 · Mar 6, 2013 · 1 replies

  1. a

    arwink21

    Mar 6, 2013 · 13y ago

    Original post

    I have searched high and low for the answers to the following 2 questions but am having no luck at all. Is there anywhere in the FAR, DFARS, CFR (anywhere!), that would answer the following:

    1. If a requirement changes (a change is made to the contract), how does that affect the Government’s right to exercise the Option?

    and

    2. Can the Government exercise an option and then terminate parts no longer need (after the option has been exercised)?

    Any feedback that can be provided is greatly appreciated!! Thank you.

  2. G

    Guest Vern Edwards

    Mar 6, 2013 · 13y ago

    1. If the government has the right to unilaterally change the contract, say, via the Changes clause, then it can change the options also without affecting its right to exercise them. If the government cannot unilaterally change the contract, it must get the contractor to agree to the change to the option.

    2. Yes.

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