Federal Acquisition Regulation; Option Clause Consistency

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 17 and 52

[FAC 97-14; FAR Case 98-606; Item IX]

RIN 9000-AI26

Federal Acquisition Regulation; Option Clause Consistency

AGENCIES: Department of Defense (DoD), General Services Administration

(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense

Acquisition Regulations Council (Councils) have agreed to adopt the

amendments of the proposed rule without change into the CFR. The rule

amends the Federal Acquisition Regulation (FAR) to make the format of

all option clauses consistent and to clarify that contracting officers

may tailor the time period for providing a preliminary notice of the

Government's intent to exercise an option.

EFFECTIVE DATE: November 23, 1999.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS

Building, Washington, DC, 20405, (202) 501-4755, for information

pertaining to status or publication schedules. For clarification of

content, contact Mr. Ralph DeStefano, Procurement Analyst, at (202)

501-1758. Please cite FAC 97-14, FAR case 98-606.

SUPPLEMENTARY INFORMATION:

A. Background

The Councils published a proposed rule in the Federal Register at

64 FR 3618, January 22, 1999, to amend FAR 17.208(g) to clarify that

the time period for providing a preliminary notice of the Government's

intent to exercise a contract option in the clause at FAR 52.217-9,

Option to Extend the Term of the Contract, may be tailored, and amend

the clause at FAR 52.217-8 to make the format of the Option to Extend

Services clause consistent with the format of other option clauses in

the FAR.

Two respondents submitted public comments. The Councils considered

the comments in finalizing the rule.

This rule was not subject to Office of Management and Budget review

under Section 6(b) of Executive Order 12866, Regulatory Planning and

Review, dated September 30, 1993. This rule is not a major rule under 5

U.S.C. 804.

B. Regulatory Flexibility Act

The Department of Defense, the General Services Administration, and

the National Aeronautics and Space Administration certify that this

final rule will not have a significant economic impact on a substantial

number of small entities within the meaning of the Regulatory

Flexibility Act, 5 U.S.C. 601, et seq., because the rule merely

clarifies an existing practice.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to

the FAR do not impose information collection requirements that require

the approval of the Office of Management and Budget under 44 U.S.C.

3501, et seq.

[[Page 51843]]

List of Subjects in 48 CFR Parts 17 and 52:

Government procurement.

Dated: September 14, 1999.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, DoD, GSA, and NASA amend 48 CFR Parts 17 and 52 as set

forth below:

1. The authority citation for 48 CFR Parts 17 and 52 continues to

read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42

U.S.C. 2473(c).

PART 17--SPECIAL CONTRACTING METHODS

2. In section 17.208, amend paragraphs (a), (b), (c) introductory

text, (d), (e), and (f) by removing ``The contracting officer shall

insert'' and add ``Insert'' in its place; and revise paragraph (g) to

read as follows:

17.208 Solicitation provisions and contract clauses.

* * * * *

(g) Insert a clause substantially the same as the clause at 52.217-

9, Option to Extend the Term of the Contract, in solicitations and

contracts when the inclusion of an option is appropriate (see 17.200

and 17.202) and it is necessary to include in the contract any or all

of the following:

(1) A requirement that the Government must give the contractor a

preliminary written notice of its intent to extend the contract.

(2) A statement that an extension of the contract includes an

extension of the option.

(3) A specified limitation on the total duration of the contract.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

3. In section 52.217-8, revise the date of the clause and the last

sentence to read as follows:

52.217-8 Option to Extend Services.

* * * * *

Option to Extend Services (Nov 1999)

* * * The Contracting Officer may exercise the option by written

notice to the Contractor within__ [insert the period of time within

which the Contracting Officer may exercise the option].

(End of clause)

3. In section 52.217-9, revise the date of the clause and paragraph

(a) to read as follows:

52.217-9 Option to Extend the Term of the Contract.

* * * * *

Option to Extend the Term of the Contract (Nov 1999)

(a) The Government may extend the term of this contract by

written notice to the Contractor within __ [insert the period of

time within which the Contracting Officer may exercise the option];

provided that the Government gives the Contractor a preliminary

written notice of its intent to extend at least __ days [60 days

unless a different number of days is inserted] before the contract

expires. The preliminary notice does not commit the Government to an

extension.

* * * * *

(End of clause)

[FR Doc. 99-24418 Filed 9-23-99; 8:45 am]

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