[Federal Register Volume 64, Number 14 (Friday, January 22, 1999)]
[Proposed Rules]
[Pages 3618-3619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1316]



[[Page 3617]]

_______________________________________________________________________

Part IV

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Parts 17 and 52



Federal Acquisition Regulation: Option Clause Consistency; Proposed 
Rule

  Federal Register / Vol. 64, No. 14 / Friday, January 22, 1999 / 
Proposed Rules  

[[Page 3618]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 17 and 52

[FAR Case 98-606]
RIN 9000-AI26


Federal Acquisition Regulation; Option Clause Consistency

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing to amend the Federal 
Acquisition Regulation (FAR) to make the format of the Option to Extend 
Services clause consistent with the format of other FAR option clauses. 
The change also permits the time period for providing a preliminary 
notice of the Government's intent to exercise a contract option to be 
tailored.

DATES: Comments should be submitted on or before March 23, 1999 to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (MVR), Attn: Laurie 
Duarte 1800 F Street, NW, Room 4035, Washington, DC 20405.
    E-mail comments submitted over Internet should be addressed to: 
[email protected].
    Please cite FAR case 98-606 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC 20405, (202) 501-4755, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mr. Ralph DeStefano, Procurement Analyst, at (202) 
501-1758. Please cite FAR case 98-606.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule amends the clause at FAR 52.217-8, Option to 
Extend Services, to permit the contracting officer to insert, in the 
clause, a time period for exercise of the option consistent with other 
option clauses at FAR 52.217-6, -7, and -9. This proposed rule also 
amends the clause at FAR 52.217-9, Option to Extend the Term of the 
Contract, to clarify that the time period for providing preliminary 
notice of option exercise may be tailored. The current prescription for 
the clause permits the use of a clause ``substantially the same as'' 
the clause at FAR 52.217-9. This proposed change emphasizes that 60 
days is the standard number of days within which to provide notice, but 
the contracting officer may specify a different number of days, when 
appropriate. Finally, an editorial amendment is made at FAR 17.208(g).

B. Regulatory Flexibility Act

    This proposed rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule 
merely amends the FAR clause pertaining to option to extend services to 
permit insertion of an option period within the clause, rather than in 
the contract schedule. The rule also clarifies existing FAR guidance 
pertaining to preliminary notice of the Government's intent to exercise 
a contract option. An Initial Regulatory Flexibility Analysis has, 
therefore, not been performed. Comments are invited from small 
businesses and other interested parties. Comments from small entities 
concerning the affected FAR subparts will be considered in accordance 
with 5 U.S.C. 610 of the Act. Such comments must be submitted 
separately and should cite 5 U.S.C. 601, et seq. (FAR Case 98-606), in 
correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FAR do not impose recordkeeping or information 
collection requirements, or collections of information from offerors, 
contractors, or members of the public which require the approval of the 
Office of Management and Budget under 44 U.S.C. 3501, et seq. This 
regulatory action was not subject to Office of Management and Budget 
review under Executive Order 12866, dated September 30, 1993, and is 
not a major rule under 5 U.S.C. 804.

List of Subjects in 48 CFR Parts 17 and 52

    Government procurement.

    Dated: January 14, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
    Therefore, it is proposed that 48 CFR Parts 17 and 52 be amended as 
set forth below:
    1. The authority citation for 48 CFR Parts 17 and 52 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 17--SPECIAL CONTRACTING METHODS

    2. Section 17.208 is amended by revising paragraph (g) to read as 
follows:


17.208  Solicitation provisions and contract clauses.

* * * * *
    (g) The contracting officer shall 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 shall 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.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    2. Section 52.217-8 is amended by revising the clause date and the 
clause to read as follows:


52.217-8  Option to Extend Services.

* * * * *

OPTION TO EXTEND SERVICES [DATE]

    The Government may require continued performance of any services 
within the limits and at the rates specified in the contract. These 
rates may be adjusted only as a result of revisions to prevailing 
labor rates provided by the Secretary of Labor. The option provision 
may be exercised more than once, but the total extension of 
performance hereunder shall not exceed 6 months. The Contracting 
Officer may exercise the option by written notice to the Contractor 
within [insert the period of time within which the Contracting 
Officer may exercise the option].

(End of clause)

    3. Section 52.217-9 is amended by revising the clause date and 
paragraph (a) of the clause to read as follows:


52.217-9  Option to Extend the Term of the Contract.

* * * * *

OPTION TO EXTEND THE TERM OF THE CONTRACT [DATE]

    (a) The Government may extend the term of this contract by 
written notice to the Contractor within [insert the period of time 
within which the Contracting Officer may

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exercise the option], provided that the Government shall give the 
Contractor a preliminary written notice of its intent to extend at 
least ______ days [60 days unless a different number of days is 
inserted] before the contract expires. The preliminary notice does 
not commit the Government to an extension.
* * * * *
(End of clause)

[FR Doc. 99-1316 Filed 1-21-99; 8:45 am]
BILLING CODE 6820-EP-P