Gives government the right to extend contract for additional periods on same terms and conditions.
Applicability: Often included in service and supply contracts to extend performance period.
Key Requirements
Accept government option to extend on pre-negotiated terms
Pricing for option period must be stated in original proposal
Be prepared to continue performance under same contract terms
Notify government if you cannot continue at option period
Common Issues & Pitfalls
Including option pricing that is significantly lower (triggers audit = you lose it)
Assuming option is guaranteed (it is not—government can cancel)
Failing to staff up for option period (creates performance issues)
Including escalation clauses that are excessive (government may not exercise option)
Contractor Guidance for Your Bid
Options can make or break a contract. Price them aggressively—it is free money if exercised. But price reasonably or government will question fairness. Plan to be available for option period from day 1.
Related FAR Clauses
Frequently Asked Questions
What are the key requirements for FAR 52.217-9: Option to Extend the Term of the Contract?
+
Gives government the right to extend contract for additional periods on same terms and conditions. Often included in service and supply contracts to extend performance period.
When does FAR 52.217-9 apply to a federal contract?
+
Often included in service and supply contracts to extend performance period.
What are the most common compliance issues with FAR 52.217-9?
+
Including option pricing that is significantly lower (triggers audit = you lose it) Assuming option is guaranteed (it is not—government can cancel) Failing to staff up for option period (creates performance issues) Including escalation clauses that are excessive (government may not exercise option)
How should contractors approach FAR 52.217-9 in their proposals?
+
Options can make or break a contract. Price them aggressively—it is free money if exercised. But price reasonably or government will question fairness. Plan to be available for option period from day 1.
What related FAR clauses should contractors review alongside FAR 52.217-9?
+
Contractors reviewing FAR 52.217-9 should also study related clauses: 52-216-7, 52-249-1. Understanding how these clauses interact helps avoid compliance gaps that can trigger contract disputes or disqualify bids.
What happens if a contractor fails to comply with FAR 52.217-9?
+
Non-compliance with FAR 52.217-9 can result in contract termination for default, withholding of payments, debarment proceedings, or False Claims Act liability. Contracting officers typically issue a cure notice before termination. Contractors should consult with a contract attorney if they receive a cure notice related to this clause.