2-19 Consider Use of Renewals and Options

When contract performance has met or exceeded requirements, and the purchase/SCM team anticipates a future need, the purchase/SCM team should consider renewing the contract or exercising options to ensure a supplier’s continued performance. Renewing a contract and exercising an option are not the same thing. Renewing a contract takes place by mutual agreement between the Postal Service and the supplier; exercising an option can be a unilateral action on the part of the Postal Service or through mutual agreement. For a contract to be renewed or an option to be exercised, the contract must include the applicable clauses.

The purchase/SCM team should consider the use of renewals and exercise of options for the following reasons:

Option provisions and clauses should not be included in contracts, and should not be exercised, when:

Renewals of mail transportation highway contracts are discussed in the Mail Transportation Purchasing commodity specific practice.