5-8.7 Exercising Options

Before exercising an option, the purchase/SCM team must determine the following:

The contracting officer must determine that the option price remains reasonable and is advantageous to the Postal Service, based on one of the following:

If the contract provides for economic price adjustment, the effect of such adjustment on prices under the option must be ascertained in determining whether to exercise the option.

When an option is to be exercised, the contracting officer must do as follows:

Contracting officers may refer to the Option Exercise – Renewal Memorandum template for their use.