DF for Inclusion of Option Periods - Health Life Insurance (002).pdf

DETERMINATION AND FINDING

FOR THE INCLUSION OF OPTION PERIODS

SOLICITATION NUMBER

19CH5024R2000

FINDINGS

The Department of State, Human Resources Office, has a requirement for LES Health and Life Insurance Service Contract. In accordance with FAR 17.202, these options are required and appropriate because the contractor will not incur undue risks, market prices are not likely to change substantially, and competition is impracticable each year once the initial contract is awarded. These options are justified in recognition of the Government's need for continuity of operations, the potential cost of the disrupted support, and it is anticipated that the service will be needed beyond the first contract period.

The Department anticipates a need for these services beyond the first contract period. Therefore, the inclusion of these option periods is deemed practical in recognition of the Government's need for continuity of operations. The inclusion of four

(4) one-year option periods is the anticipated need projected by the program office.

The total of the basic period and four (4) option periods shall not exceed five (5) years.

The Government will evaluate these options at the time of award to determine that the prices are fair and reasonable. The evaluation of options will not obligate the Government to exercise these options.

The requirements under this contract exceed the basic quantity to be awarded, but due to the unavailability of funds, the Government cannot exercise these options at the time of award. However, the Government is reasonably certain that funds will be available to permit exercise of these options.

Competition for the option quantity is impractical because it would be impractical once the contract is awarded to compete each option, and there would be potential disruption and administrative cost to award a new contract each year.

The Government's notification to the Contractor of sixty (60) days prior to contract expiration of the Government's intention to exercise an option is sufficient notice, because the option periods shall be pre-priced and no lengthy preparation will be needed to continue contract performance. Before exercising these options, an analysis will be performed to determine whether exercise of the renewed option is the most advantageous method of fulfilling the Government's need, price and other factors considered.

DETERMINATION

Based upon the above findings, I hereby determine that the evaluation and inclusion of four (4) one-year option periods is in the Government's best interest in this procurement.

Date

Contracting Officer

Date Head of Contracting Activities (HCA) 3/28/2024