HHS Reference Tool for Contract Funding, Formation and Appropriations Law Compliance
Multiple-Year Appropriation — Option
Will the base period and each subsequent option cover a period that does not extend beyond the multiple-year appropriation source's period of availability?
Option means a unilateral right in a contract by which, for a specified time, the Government may elect to purchase additional supplies or services called for by the contract within the existing term of the contract, or may elect to extend the term of the contract. This definition expands on the definition in FAR 2.101. Please also see FAR Subpart 17.2.
- Use of options as a unilateral right of the Government requires their identification in the solicitation, evaluation of their terms and pricing as part of the award determination, and their inclusion in the contract award.