---
kind: "section"
citation: "48 C.F.R. § 517.202"
title: "48"
number: "517.202"
heading: "Use of options."
url: "https://uscodex.org/cfr/48/517.202"
---

# §517.202. Use of options.

- (a) Options may be used when they meet one or more of the following objectives:
  - (1) **Reduce procurement lead time and associated costs.**
  - (2) **Ensure continuity of contract support.**
  - (3) **Improve overall contractor performance.**
  - (4) Facilitate longer term contractual relationships with those contractors that continually meet or exceed quality performance expectations.
- (b) **An option is normally in the Government's interest in the following circumstances—**
  - (1) **There is an anticipated need for additional supplies or services during the contract term.**
  - (2) When there is both a need for additional supplies or services beyond the basic contract period and the use of multi-year contracting authority is inappropriate.
  - (3) **There is a need for continuity of supply or service support.**
- (c) An option shall not be used if the market price is likely to change substantially and an economic price adjustment clause inadequately protects the Government's interest.

## Notes

### Amendments

[84 FR 3716, Feb. 13, 2019]

### Authority

Authority: 40 U.S.C. 121(c).

### Source

Source: 64 FR 37218, July 9, 1999, unless otherwise noted.

### Amendments

[84 FR 3716, Feb. 13, 2019]