An options contract is an agreement between a buyer and seller that gives the purchaser of the option the right to buy or sell a particular asset at a later date at an agreed upon price. Congratulations on procuring a contract with the government. Base Contract + Option Periods. Read your contract carefully. By Yolanda Cowart | July 31, 2017 . Contracts Finder lets you search for information about contracts worth over £10,000 with the government and its agencies. Most contracts are awarded with a base contract period and one or more option periods. The next step is to create, build, or manufacture your product or service for prompt delivery. 16 The government asserted that the short-term leases were permitted extensions of existing leases pursuant to FAR 52.217-8. You’ve taken a huge step in growing your small business and positioning yourself for success. Almost all options grant the government a unilateral right to exercise (or not exercise) the option. 1. (f) Before exercising an option, the contracting officer shall make a written determination for the contract file that exercise is in accordance with the terms of … • If the government is the only buyer, industry may be motivated by continued access to sell • Contract options, incumbency, continued customer familiarity • If the government is one of many buyers, industry may have broader financial motivations • Less intrusion may be strong incentive for commercial seller Base Contract. Five Options for Financing a Government Contract. Moreover, the rule at the time was to not evaluate options for the purposes of contract award. For stock options, a single contract covers 100 shares of the underlying stock. A. Options contracts are often used in securities, commodities, and real estate transactions. Buying an option offers the right, but not the obligation to purchase or sell the underlying asset. (2) The Government may use the Option to Extend Services clause (FAR 52.217-8) whenever delays are due to circumstances beyond the control of the contracting office. A common structure is a one fiscal year base contract with four onefiscal- -year options where each option may be unilaterally exercised at the government’s option during a specified period of time. Do you find yourself wondering, now what? Three months into that option period, the government sought to lease 67 vehicles for a term that was less than the contract’s 12-month minimum.