2006 SOLICITATION OF CONTRACTS WITH OPTIONS

2006.1 If a contract will provide for the exercise of an option, the solicitation shall include appropriate option clauses approved by the Director.2006.2 Each solicitation containing an option provision shall state the basis of evaluation, either exclusive or inclusive of the option and, when appropriate, shall inform bidders that the District may exercise the option at the time of award.2006.3 A solicitation shall allow option quantities to be offered without limitation as to price, but there shall be no limitation with regard to price if the option quantity will be considered in the evaluation for award.2006.4 A solicitation may require that an option must be offered at prices no higher than those for the initial requirements in either of the following circumstances:- (a) When the option quantities will not be evaluated for award purposes; or

- (b) When future competition for the option is not practical.2006.5 A solicitation that requires the offering of an option at prices no higher than those for the initial requirement shall specify the following:- (a) That the District will accept an offer containing an option price higher than the base price only if the acceptance does not prejudice any other offeror; and

- (b) That option quantities for additional goods will be limited to not more than fifty percent (50%) of the initial quantity of the same contract line item. However, in unusual circumstances, the agency head may approve a greater percentage or quantity.2006.6 Each solicitation and contract shall specify limits on the purchase of additional goods or services, or the overall duration of the term of the contract, including any option extension.2006.7 Each solicitation and contract shall state the period within which an option may be exercised and the period shall be set in order to provide the contractor adequate lead time to ensure continuous production or services2006.8 A solicitation or contract may express options for increased quantities of goods or services in terms of the following:- (a) A percentage of specific line items;

- (b) An increase in specific line items; or

- (c) An additional numbered line item identified as the option.

SOURCE: Final Rulemaking published at 35 DCR 1512 (February 26, 1988).