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This document summarizes the rationale for including an option provision in a forthcoming solicitation for a Beckwood 150-ton elastomeric sheet metal forming press, training, and installation. The solicitation will seek a firm fixed price contract and include provisions allowing for an option for installation supervision to be exercised within 60 days of award. The contracting officer has determined it is in the government's best interest to include this option based on expectations that exercising the option would not result in a better price than negotiating a new contract, required materials and labor are reasonably foreseeable, and there is reasonable certainty that funds will be available to exercise the option if needed.

The related federal contract opportunity is a solicitation from the Department of the Army Materiel Command Contracting Command at Redstone Arsenal seeking one Baileigh 112-ton c-frame hydraulic press and installation and on-site training for one Beckwood elastomeric forming kit. No further details are provided on pricing terms, response dates, or other requirements.

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CUI

DETERMINATION FOR INCLUSION OF OPTION PROVISIONS FOR SUPPLIES

(As prescribed in FAR 17.2)

RATIONALE

1. It is anticipated a Firm Fixed Price type contract will result from the proposed solicitation for Beckwood 150-ton elastomeric sheet metal forming press, training, and installation. The requester has requested that an option for Installation supervision for turnkey be included in the contract.

2. It is anticipated a new solicitation for the option quantity would not result in a better price. Solicitation provision(s) FAR 52.217-5, Evaluation of Options, FAR 52.217-7, Option for Increased Quantity – Separately Priced Line Item will be incorporated into the solicitation. It is not anticipated the Contractor will incur undue risks, as the price and availability of necessary materials and labor are reasonably foreseeable.

3. In accordance with FAR 17.203 and FAR 17.204, the option quantity will be a separately priced line item with no limitation on price, will specify a total quantity limit on the option and will fix the period within which the option will be exercised. The quantity option will be exercised no later than 60 days after date of contract which is considered adequate lead-time in order to assure continuous production.

4. In accordance with FAR 17.206 the option quantity may be considered in the evaluation for award based on the following:

(a) There is a known requirement that exceeds the basic quantity to be awarded, but due to the unavailability of funds, the option cannot be exercised at the time of award of the basic contract;

(b) The Government is likely to exercise the option; and

(c) There is reasonable certainty that funds will be available later to permit exercise of the option.

DETERMINATION

Based on the foregoing information and in accordance with FAR 17.202 and FAR 17.205, it is determined to be in the best interest of the Government to include an option provision in the solicitation and resulting contract.

Danny Ortiz Contracting Officer

Version – June 2017

File details come from the government source that posted it. Updated .