2-19.3 Clauses and Provisions

When options will be used, the purchase/SCM team must follow the instructions in paragraph b.. of Provision 4-2: Evaluation, or the solicitation must include Provision 2-3: Evaluation of Options. In addition, the contract must include one of the following clauses:

  • Clause 2-17: Option for Increased Quantity - is used when the Postal Service may increase the quantity of goods called for under the contract within the contract term by the amounts and at the unit prices specified in the schedule and the option quantity is expressed as something other than a separately priced line item (e.g., a finite quantity, a percentage, etc.).
  • Clause 2-18: Option Item (CLIN) - is used when the Postal Service may increase the quantity of goods called for under the contract by the amounts and at the unit prices specified in the schedule and the option quantity is expressed as a separately priced contract line item (CLIN).
  • Clause 2-19: Option to Extend (Short Term) - is used when the Postal Service anticipates it may need to extend contract performance for a period up to but not longer than six months. The option clause may be used in contracts for either goods or services. The option is expressed as a short-term extension of the contract term and requires suppliers to continue in performance at the same delivery/performance rate and at the unit prices specified in the schedule.
  • Clause 2-20: Option Period - is used when the option is expressed as the right to extend the term for an agreed upon additional period of performance, as set forth in the schedule.

Care must be exercised to ensure that the schedule in any contract contains the options and any other information called for in the related option clause.

Renewal actions of contracts are applicable only to mail transportation highway contract route instruments. Renewals of mail transportation highway contracts are discussed in the Mail Transportation Purchasing commodity specific practice (See Section 8-2.3.6, Contract Renewals).