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.