Office of Procurement, Acquisition and Logistics (OPAL)
Exercising an Option under Your FSS Contract
On this page:
New Solicitation Proposal (Follow-on Proposals) | Short Term Contract Extensions | Notice of Intent to Exercise an Option | Submission Timeframes | Submission Protocol | Option Review Process | Option Review Timeframe | Discussions/Negotiations | Elements of a Successful Option Package | Assistance
In accordance with option clauses 52.217-9 and I-FSS-163, the Government may request continued performance of the awarded contract. Your contract period may be eligible for extension if you have option years remaining, your past performance is satisfactory, all annual registrations are up-to-date, all contract requirements have been fulfilled, and it is determined that your contract continues to be in the best interest of the Government.
With the exception of contracts awarded under Schedule 66 III and Schedule 65 I B, the option clause may be exercised more than once to add 1 or more option year periods, but the total extension of performance shall not exceed 5 years leading to a potential, total period of performance of 10 years. Typically the option is extended as an additional 5-year period. The option clause under Schedule 66 III (I-FSS-163) provides for 3, 5-year option periods, leading to a potential, total period of performance of 20 years. Although the Schedule 65 I B solicitation contains option clause 52.217-9, FSS does not exercise a 5-year option but will require 65 I B contract holders to submit a follow-on proposal; however, the contract may exceed the 5-year base period through short-term extensions granted while evaluating a follow-on proposal.
Contracts at the end of their performance period (5 years for 65 I B contracts, 20 years for 66 III contracts and 10 years for all other Schedule contracts) are not eligible for further extension; therefore, submission of a new solicitation proposal is required.
For those required to submit a new, follow-on proposal, the current solicitation package is available online. Information on the new offer review and award process is available on the Getting on Schedule page. Specific solicitation documents for all VA FSS Schedules can be accessed through the VA Schedules Program page. If you are unsure if an option can be exercised under your contract or if you must submit a new solicitation proposal, please contact your assigned Contract Specialist to discuss your circumstances.
During the government’s evaluation of your proposal, short-term extensions may be granted so as to allow continuity of the contract; however, the short-term extensions cannot extend the life of the contract beyond its full potential performance period (20 years for Schedule 66 III and 10 years for all other schedules). Short-term extensions are granted only after a new contract proposal or option proposal is received; therefore you must be timely with your submission.
The individual listed as the Contract Administrator on your current FSS contract will receive email notification of the Government’s intent to exercise an option under your contract 18 months prior to the expiration of your contract. This notification will also include the Option to Extend Package and a request for you to contact your assigned Contract Specialist within five business days to verify receipt and to discuss the letter and contents of the option package. This conversation will ensure that you understand the information required and to answer any additional questions you may have. To ensure receipt of the notice, please keep your contact information and contract administration point of contact up-to-date. If you need to change this information please submit an administrative request for modification.
To avoid a lapse in performance it is recommended that you submit your option package or follow-on proposal in accordance with the timeframes outlined below.
| Circumstance | Timeframe |
|---|---|
| Option Proposal Requiring OIG Review: If the annual value of your contract meets or exceeds $5 million for 65IB and $3 million for all other schedules. | 15 months prior to expiration |
| All Other Option Proposals: If your contract does not require OIG review and you do not need to submit a new proposal. | 6 months prior to expiration |
| New Follow-on Proposal Requiring OIG Review: If you are required to submit a new solicitation proposal and the estimated contract value meets or exceeds $5 million for 65IB and $3 million for all other schedules. | 15 months prior to expiration |
| All Other New Follow-on Proposals. If you are required to submit a new solicitation proposal, and your contract does not require OIG review. | 12 months prior to expiration |
In addition to adhering to the submission timeframes above, please be aware of these requirements when submitting your option package.
- Submit Package by Email To: FSSOffersandExtensions@va.gov
- Subject Line: Extension – Contract Number – Schedule # (Example: Extension - V797D-1234d - 65IIA)
- File Limit: 10MB; for larger files, zip or send in multiple e-mails, identifying the number of files in the subject line (Example: Extension - V797D-1234d - 65IIA, 1 of 3)
The goal of this review process is to ensure the contractor has met all contract requirements during the initial period of performance and that continuation of the contract is in the Government’s best interest.
The option review process usually takes 120 calendar days, but it may take more or less depending on the completeness and complexity of the proposal. Factors such as an OIG review could increase the time of the review process. A complete and accurate proposal, submitted within the recommended timeframes, will help speed the process.
The assigned contract specialist may require discussions/negotiations if:
- The contractor’s Commercial Sales Practices (CSP) disclosures changed.
- New terms and conditions are being proposed or pricing structure has changed.
- The contractor did not meet the requirements of the contract or its past performance is unsatisfactory.
- Awarded pricing can no longer be determined fair and reasonable.
- The estimated value of the proposal necessitates a pre-award review by the VA Office of Inspector General.
The Government reserves the right to request a new FSS proposal in lieu of extending the existing contract.
- Expiration Date — Be cognizant of the expiration date of your contract. While the Government will provide you with notification of its intent to consider exercising an option under your contract, it is your responsibility to be aware of your awarded period of performance.
- Submit your Proposal in a Timely Fashion — Submit your proposal promptly after you receive notice of the Government’s intent to exercise an option under your contract to avoid any interruption of service.
- Documentation — Did you submit all required documents, including the fill-in Word document, the Excel spreadsheet, and any required supporting documentation?
- Past Performance — Does your firm meet its contractual commitments and submit all required deliverables timely?
For additional information on submitting an option package, contact your assigned contract specialist.
This page may include links to other websites outside our control and jurisdiction. VA is not responsible for the privacy practices or the content of non-VA websites. We encourage you to review the privacy policy or terms and conditions of those sites to fully understand what information is collected and how it is used.
