Questions regarding potential award under SeaPort contract

A Navy agency wants to give us a project around $750K. Our prime has a SeaPort contract. Within the SeaPort contract the prime was issued a broad Task Order (TO). Within that TO’s scope the prime was issued a specific Delivery Order (DO). Then the prime issued us a CPFF Purchase Order (PO). The TO and the DO expire in July 2015. All parties agree on the LOE ($750K) and that that the PO work will take 12 months (from Oct 2014 to Oct 2015) and thus exceeds the period of performance of the TO/DO (again, July 2015). Questions:

1. Is it necessary that the prime requests an extension in the period of performance of the TO and/or of the DO (which one or both?)?
2. What is the preferred way to handle the situation on our end?
3. What is the likelihood that the CO will/will-not grant an extension considering that the Navy will incur more cost if they have to split the SOW into two parts, recomplete, etc. and conversely there is no additional cost if a time extension was granted?