FAR 52.217-3—Evaluation Exclusive of Options.
Plain-English Summary
FAR 52.217-3, Evaluation Exclusive of Options, is a solicitation provision used when a solicitation includes an option clause but does not use one of the alternative evaluation provisions prescribed in FAR 17.208(b) or (c). It tells offerors and contracting officers that, for award evaluation purposes, the Government will consider only the price of the basic requirement and will not include option prices in the evaluation. The provision matters because it controls how offers are compared, which can affect competition, pricing strategy, and the apparent low offeror. In practice, it separates the award decision from the later decision whether to exercise options, so contractors should not expect option pricing to influence the initial source selection. Contracting officers must use it only in the circumstances identified by the prescription and must ensure the solicitation clearly states that options are excluded from evaluation. This provision does not eliminate the option clause itself; it only addresses how the Government evaluates offers for award.
Key Rules
Evaluate basic price only
The Government evaluates offers using only the price for the basic requirement. Option quantities or periods are excluded from the award evaluation.
Use with option clauses
This provision is used when the solicitation includes an option clause. It is not a standalone pricing rule; it applies in the context of solicitations that reserve option rights for later exercise.
Limited by FAR 17.208
The prescription applies only when the solicitation does not include one of the evaluation provisions in FAR 17.208(b) or (c). Those other provisions govern situations where option prices are included in evaluation.
Award comparison is unaffected by option pricing
Offerors may still propose option prices, but those prices do not affect which offer is selected for award under this provision.
Basic requirement drives competition
Because only the basic requirement is evaluated, the initial competition focuses on the base contract price and related terms rather than the total potential value including options.
Responsibilities
Contracting Officer
Include this provision in the solicitation when required by FAR 17.208(a), ensure the solicitation also contains the applicable option clause, and evaluate offers using only the basic requirement price for award purposes.
Agency
Follow the FAR prescription governing when this provision may be used and ensure solicitation templates and acquisition planning align with the intended evaluation method for options.
Contractor/Offeror
Prepare pricing with the understanding that option prices will not be considered in the award evaluation, and base the competitive offer on the basic requirement because that is what determines award.
Practical Implications
Offerors should not assume a low option price will improve their chance of award under this provision; only the base price matters for evaluation.
Contracting officers must be careful not to mix this provision with solicitation language that says options will be evaluated, because that would create a conflict in the evaluation scheme.
This provision can make a solicitation appear cheaper at award time than the eventual total contract value if options are later exercised, so acquisition teams should still assess long-term affordability separately.
A common pitfall is failing to distinguish between evaluation for award and later option exercise decisions; the Government may still decide whether to exercise options based on its needs and funding, even though options were excluded from initial evaluation.
Contractors should review the solicitation carefully to confirm whether option prices are excluded or included, since that affects pricing strategy and competitive positioning.
Official Regulatory Text
As prescribed in 17.208 (a) , insert a provision substantially the same as in the following in solicitations when the solicitation includes an option clause and does not include one of the provisions prescribed in 17.208 (b) or (c): Evaluation Exclusive of Options (Apr 1984) The Government will evaluate offers for award purposes by including only the price for the basic requirement; i.e., options will not be included in the evaluation for award purposes. (End of provision)