Severable Services on FFP

I am a PM and recently took iver a contract that is in its 4th year. I am working with our contracting team to exercise an optional CLIN for FY24 inspection of fences and signs.

Part of the Base contract was for the contractor to implement environmental remedies (fencing and warning signs) at 32 sites to mitigate human interactions with unexploded ordnance at former bombing ranges for the AF. The plan was the contractor would implement the remedies by FY23. Contractor got behind schedule and since not all remedies were not installed we did not award the FY23 inspection and signage optional clin since we did not have a bona fide need (not all signs and fence were installed so option for inspection of those signs and fence could not be awarded).

The KO is saying we cannot award FY24 or FY25 optional inspection clins (when FY25 comes around next year) since we failed to exercise FY23 options for the inspection of signs and fencing for that FY. KO stated those FY23, 24, 25 options are "severable" and we "broke the reoccuring sequence" for severable services when we did not award FY23 inspections option clin. 

To me this seems really odd, but maybe I am missing something here. I'm am unsure why the previous pdt and contracting team would put options for these services if there was risk that they would all die if one of the options was not exercised. Any type of schedule delay or stop work order would put these options at risk. To me that removes the whole idea of them being "optional" and would make them non-severable. Am I missing something here? Is there something in the FAR or DoD guidance on a topic like this?

For more information the Base contract has a pop of 5 years and is up September 2025.

Options have a pop of 1 year. Each FY inspection has a report deliverable that is unique to that inspection for the year.

Thank you