17-P-0053_MFR_Option.docx

N39040-17-T-0053

MEMORANDUM FOR FILE IAW FAR 17.205

SUBJECT: UTILIZATION OF OPTION ITEM(S)

1. This requirement is for the rental of one (1) 20FT Freezer and one (1) 20FT Refrigerator unit. The place of performance is located at the Portsmouth Naval Shipyard (PNS). The Period of Performance (POP) is 2 February 2017 through 1 February 2018 with a one (1) year option period from 2 February 2018 through 31 January 2019. The cost of this acquisition is $16,800.00 for the base period, and an additional $16,800.00 for the additional one (1) year option. The total price if all options are exercised would be $33,600.00.

2. It is considered essential that the option clause 52.217-9 be included in the proposed contract to allow the Government the option to extend the rental of the refrigerator and freezer unit.

a) The opportunity to exercise the option will ensure operational support without restriction of contracting practices to achieve the best value to the Government. In addition, an option clause will provide for a cost savings relative to the administrative functions of contracting, and provide for better contractor employment stability.

b) There is a known requirement which exceeds the basic period of performance to be awarded but due to the unavailability of funds; the option will not be exercised at the time of award. There is a reasonable certainty that funds will be available thereafter to permit exercise of the options.

c) In order to provide for a continuity of effort and uninterrupted use of the required rental services for the additional year, an option clause is necessary. The option quantities will be priced separately from the base weeks and will fulfill known requirements at this time.

3. It is determined to be in the best interest of the government to evaluate the option period requirements in the evaluation for award. The option requirements may be exercised fifteen (15) days prior to the expiration date of the basic contract.

4. In review of the above, it is determined to be in the Government’s best interest to evaluate options under this proposed contract.

Anthony Barker

Andrea Panagoulias