2-19.6 Clauses and Provisions

Clause B-78: Renewal (March 2006) should be included in the contract when the purchase/SCM team foresees the potential need for such an extension.

When a priced option will be used, the purchase/SCM team must follow the instructions in paragraph b of Provision 4-2: Evaluation, or the solicitation must include either Provision 2-3: Evaluation of Options or Provision 2-4: Evaluation Exclusive of Options. When an unpriced option will be used, the solicitation must include Provision 2-5: Evaluation Exclusive of Unpriced Options. In addition, the contract must include one of the following clauses:

• Clause 2-17: Option for Increased Quantity is used when the contract gives the option quantity as a percentage of the basic contract quantity or as an additional quantity of a specific line item.
• Clause 2-18: Option Item is used when the contract identifies the option quantity as a separately priced line item having the same name as a corresponding basic-contract line item.
• Clause 2-19: Option to Extend (Services Contract) is used when it is intended to extend the services to be performed and written notice of intent to extend the contract is not required.
• Clause 2-20: Option to Renew (with Preliminary Notice) is used to provide for continuing performance of the contract beyond its original term and it is necessary to include in the contract a requirement that the Postal Service will give the supplier a preliminary written notice of its intent to extend the contract.
• Clause 2-25: Unpriced Options is used when the contract provides for unpriced options.

Care must be exercised to ensure that the schedule of any contract that contains one of the above option clauses includes the information relating to the option that the clause requires (e.g., notice of intent to renew).