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(Revised January 3, 2012)

 

PGI 217.2—OPTIONS

(See DFARS 217.2, DFARS/PGI view)

 

PGI 217.202  Use of options.

 

      (1)  Options may be used for foreign military sales requirements.

 

      (2)  Consider use of surge options to support industrial capability.  A surge option allows the Government, prior to final delivery, to—

 

              (i)  Accelerate the contractor's production rate in accordance with a surge production plan or a delivery schedule provided by the contractor under the terms of the contract; and

 

              (ii)  Purchase additional quantities of supplies or services.

 

      (3)  See DFARS Subpart 217.74 (See DFARS 217.74 , DFARS/PGI view)
for limitations on the use of undefinitized options.

 

PGI 217.207 Exercise of options.

 

      Before exercising an option for firm-fixed-price contracts containing spare parts, the contracting officer shall perform a cost or price analysis of the proposed spare parts. The contracting officer shall use an appropriate sampling technique or request field pricing assistance, and document the contract file with the results of the cost or price analysis.