17.207 Exercise of options.

(S-90) To exercise an option, the requirements office will send the cognizant contracting officer a request to exercise the option. The request, and other documents as outlined below, must be received far enough in advance to allow sufficient time to send the contractor notice of intent to exercise the option to exercise the option under FAR 17.207(a) and before synopsis (FAR 17.207(c)(4)) if the synopsis of the option is necessary because the option was not previously addressed in the synopsis of the basic contract requirement.

(S-91) The request to exercise an option must include the following:

(1)  Statement of Need. Validate the requirement covered by the option as fulfilling an existing Government need (FAR 17.207(c)(2))

(2) Market Research. Document all market research conducted and the results (FAR/DARS Part 10).

(3)  Past Performance. Provide relevant raw data for past performance of the contractor (FAR/DARS Part 42.15)

(4)  Availability of Funds. Provide evidence that funds will be available upon exercise of option (e.g., Program Plan).

(S-92) The request to exercise an option shall be marked and submitted as follows:

(1)  Required markings on all pages, centered, top/bottom: "SOURCE SELECTION INFORMATIONSee FAR 2.101 and 3.104"

(2)  Electronic submission is required using digitally signed/encrypted e-mail. See DISAI 630-230-30 for e-mail security practices for the transmission of sensitive but unclassified information.

(S-93) The contracting officer must discuss compliance with DARS Subpart 16.601 in the D&F if exercising options under a time and materials (T&M) contract.