FAR 17.208—Solicitation provisions and contract clauses.
Plain-English Summary
FAR 17.208 tells contracting officers which solicitation provisions and contract clauses to use when a solicitation or contract includes options. It covers the evaluation of options in source selection, including when to use the provisions at 52.217-3, 52.217-4, or 52.217-5, and when the contracting officer must make a written determination for sealed bids. It also covers the option clauses used for increased quantities and term extensions: 52.217-6 for increased quantity options expressed as a percentage or additional quantity, 52.217-7 for increased quantity options identified as separately priced line items, 52.217-8 for extending services, and 52.217-9 for extending the term of the contract. In practice, this section ensures the solicitation and resulting contract clearly state how options will be evaluated, when they may be exercised, and what limits or notice requirements apply. It matters because option language affects competition, pricing, award decisions, and the Government’s ability to continue work without a new procurement. Contracting officers must match the clause or provision to the type of option being used and the type of contract contemplated, while contractors must understand that option pricing and evaluation terms can affect award outcomes and future performance obligations.
Key Rules
Use the right evaluation provision
If a solicitation includes an option clause, the contracting officer must insert a provision on how options will be evaluated. Use 52.217-3 unless the solicitation fits the specific conditions for 52.217-4 or 52.217-5.
Exclude options from evaluation by default
When a solicitation includes an option clause but does not use the special evaluation provisions in paragraphs (b) or (c), the Government must evaluate the offer exclusive of options under 52.217-3. This means the base requirement is evaluated without counting option quantities or periods unless the solicitation says otherwise.
Evaluate exercisable-at-award options separately
Use 52.217-4 when the solicitation includes an option clause, the contracting officer reasonably expects the option will be exercised, and the option may be exercised at contract award. This provision is for situations where the Government may decide at award time to include the option in the initial award decision.
Evaluate likely-to-be-exercised options for fixed-price awards
Use 52.217-5 when the solicitation includes an option clause, the option will not be exercised at award, a firm-fixed-price or fixed-price-with-economic-price-adjustment contract is contemplated (or another agency-approved type), and the contracting officer reasonably expects the option will be exercised. For sealed bids, the reasonable-likelihood determination must be in writing.
Use quantity option clauses for supplies, not services
Insert 52.217-6 or 52.217-7 in solicitations and contracts other than those for services when an option is appropriate. 52.217-6 applies when the option quantity is stated as a percentage of the basic quantity or as an additional quantity of a specific line item; 52.217-7 applies when the option is a separately priced line item with the same nomenclature as the corresponding base line item.
Use service extension clause for service contracts
Insert 52.217-8 in solicitations and contracts for services when an option is appropriate. This clause is the standard tool for extending services beyond the base period under the conditions allowed by the contract.
Use term-extension clause when needed
Insert 52.217-9 when an option is appropriate and the contract needs one or more of these features: preliminary written notice of intent to extend, a statement that extending the contract also extends the option, or a specified maximum total contract duration.
Responsibilities
Contracting Officer
Select and insert the correct solicitation provision or contract clause based on the type of option, the contract type, and whether the option may be exercised at award. Make the required reasonable-likelihood determination, and for sealed bids document that determination in writing when using 52.217-5. Ensure the contract language clearly addresses evaluation, exercise timing, notice, and any total-duration limits.
Agency
Follow agency procedures for approving contract types other than firm-fixed-price or fixed-price with economic price adjustment when using 52.217-5. Ensure internal acquisition policies support the use of option clauses and the required determinations.
Contractor
Review option-related provisions carefully because they can affect how the offer is evaluated, whether the option may be included at award, and what future performance may be required. Price and plan for option periods or quantities knowing the Government may exercise them under the stated terms.
Source Selection / Evaluation Team
Evaluate offers in accordance with the solicitation’s option-evaluation provision, including whether options are excluded from evaluation or considered at award or for likely exercise. Apply the stated evaluation method consistently across offers.
Practical Implications
Option language can change the competitive outcome, so a misplaced provision may lead to an improper evaluation or protest risk.
The contracting officer must align the clause with the contract structure: services use 52.217-8, while supply/quantity options generally use 52.217-6 or 52.217-7.
A reasonable-likelihood finding is not optional when using 52.217-4 or 52.217-5; for sealed bids, failing to document it in writing is a compliance problem.
If the contract needs advance notice, option carryover, or a hard cap on total duration, 52.217-9 must be used so those terms are enforceable.
Contractors should watch for whether option quantities or periods are included in price evaluation, because that can materially affect both award chances and future pricing strategy.
Official Regulatory Text
(a) Insert a provision substantially the same as the provision at 52.217-3 , Evaluation Exclusive of Options, in solicitations when the solicitation includes an option clause and does not include one of the provisions prescribed in paragraph (b) or (c) of this section. (b) Insert a provision substantially the same as the provision at 52.217-4 , Evaluation of Options Exercised at Time of Contract Award, in solicitations when the solicitation includes an option clause, the contracting officer has determined that there is a reasonable likelihood that the option will be exercised, and the option may be exercised at the time of contract award. (c) Insert a provision substantially the same as the provision at 52.217-5 , Evaluation of Options, in solicitations when- (1) The solicitation contains an option clause; (2) An option is not to be exercised at the time of contract award; (3) A firm-fixed-price contract, a fixed-price contract with economic price adjustment, or other type of contract approved under agency procedures is contemplated; and (4) The contracting officer has determined that there is a reasonable likelihood that the option will be exercised. For sealed bids, the determination shall be in writing. (d) Insert a clause substantially the same as the clause at 52.217-6 , Option for Increased Quantity, in solicitations and contracts, other than those for services, when the inclusion of an option is appropriate (see 17.200 and 17.202 ) and the option quantity is expressed as a percentage of the basic contract quantity or as an additional quantity of a specific line item. (e) Insert a clause substantially the same as the clause at 52.217-7 , Option for Increased Quantity-Separately Priced Line Item, in solicitations and contracts, other than those for services, when the inclusion of an option is appropriate (see 17.200 and 17.202 ) and the option quantity is identified as a separately priced line item having the same nomenclature as a corresponding line item. (f) Insert a clause substantially the same as the clause at 52.217-8 , Option to Extend Services, in solicitations and contracts for services when the inclusion of an option is appropriate. (See 17.200 , 17.202 , and 37.111 .) (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.