52.217-7 Option Clause.pdf

This document is a federal contract clause (52.217-7) that establishes the terms for exercising options to increase quantities of separately priced line items. The clause permits the Government to require delivery of additional quantities of a designated line item at prices and quantities specified in the contract Schedule. The Contracting Officer may exercise this option through written notice to the Contractor within a 30-day period from the option date. Delivery of the added items must continue at the same rate as like items being called for under the base contract, unless the parties mutually agree to alternative delivery terms. This clause, effective March 1989, is a standard FAR provision used in federal contracts to provide the Government with flexibility to expand quantities of supplies or services at pre-negotiated prices without requiring contract modifications or re-competition.