FAR 52.217-7—Option for Increased Quantity-Separately Priced Line Item.
Plain-English Summary
FAR 52.217-7, Option for Increased Quantity—Separately Priced Line Item, gives the Government a contractual right to order an additional quantity of a specific line item that was identified in the Schedule as an option item and separately priced. This clause addresses the basic mechanics of exercising that option: the Government must act through the Contracting Officer, must do so by written notice, and must do so within the option exercise period inserted into the clause. It also establishes the default rule for performance after the option is exercised: delivery of the added items continues at the same rate as comparable items already being delivered under the contract, unless the parties agree otherwise. In practice, this clause is used when the Government wants flexibility to increase quantities without reopening the contract or negotiating a new procurement, while still preserving price certainty for the added units. It matters because it ties the option right to a specific line item, a specific quantity, a specific price, and a specific time window, so both sides need to track the schedule carefully and understand exactly what can be ordered and when.
Key Rules
Option must be separately priced
The clause applies only to a numbered line item identified in the Schedule as an option item with its own stated price. The Government cannot use this clause to add quantity unless the contract already set out that option item and price.
Exercise by written notice
Only the Contracting Officer may exercise the option, and the exercise must be made by written notice to the Contractor. Oral direction or informal communication is not enough to bind the Contractor to deliver the added quantity.
Must act within stated period
The clause requires the contract to specify the time period for exercising the option, and the Government must act within that window. If the option is not exercised on time, the Government generally loses the right to require the added quantity under this clause.
Delivery at stated quantity and price
When properly exercised, the Government may require delivery of the option quantity at the price stated in the Schedule. The Contractor is obligated to provide the added items on the terms already established in the contract.
Same delivery rate unless agreed otherwise
Added items must be delivered at the same rate as like items called for under the contract unless the parties agree to a different schedule. This prevents the option from being used to impose a materially different production or delivery pace without mutual agreement.
Limited to the scheduled line item
This clause does not create a general right to increase any contract quantity. It is limited to the specific option line item identified in the Schedule, so the contract drafting must clearly identify the item, quantity, and price.
Responsibilities
Contracting Officer
Ensure the contract includes the clause with a properly inserted option exercise period, monitor the deadline, and provide timely written notice if the Government elects to require the additional quantity. The Contracting Officer must also confirm that the option item is properly identified in the Schedule and that the exercise is consistent with the contract terms.
Contractor
Be prepared to deliver the separately priced option quantity if the Government exercises the option within the stated period and by written notice. The Contractor must continue delivery at the same rate as like items under the contract unless a different rate is mutually agreed.
Agency/Program Office
Plan requirements early enough to determine whether the option quantity may be needed and coordinate with the Contracting Officer before the exercise deadline. The agency should ensure the option item, quantity, and pricing support the intended acquisition strategy.
Contract Drafting Team
Insert the correct exercise period and clearly identify the option line item in the Schedule with quantity and price. Drafting must avoid ambiguity about what quantity may be ordered and when the Government’s right expires.
Practical Implications
This clause is a planning tool: if the Government may need more of the same item, the option must be built into the contract up front with clear pricing and timing.
A common pitfall is missing the exercise deadline; once the period passes, the Government may need a new procurement or a separate contract action instead of relying on the option.
Another frequent issue is unclear schedule language. If the option item, quantity, or price is not clearly identified, the Government may face disputes over whether the option was validly created or exercised.
Contractors should watch for written notices that purport to exercise the option and verify they come from the Contracting Officer and fall within the stated period.
The default delivery-rate rule can affect production planning and logistics, so both sides should address any need for accelerated or delayed delivery before the option is exercised, not after.
Official Regulatory Text
As prescribed in 17.208 (e) , insert a clause substantially the same as the following: Option for Increased Quantity-Separately Priced Line Item (Mar 1989) The Government may require the delivery of the numbered line item, identified in the Schedule as an option item, in the quantity and at the price stated in the Schedule. The Contracting Officer may exercise the option by written notice to the Contractor within ______________________ [ insert in the clause the period of time in which the Contracting Officer has to exercise the option ] . Delivery of added items shall continue at the same rate that like items are called for under the contract, unless the parties otherwise agree. (End of clause)