Option Contracts: A Study of Variable Quantity Contracts which do not Obligate the Government

摘要

A study of options in federal government contracts is a considerably different undertaking than a similar study of options in the common law context. The rules governing contracts, contained in the various procurement regulations, both limit somewhat the occasions which they can be used as well as create technical requirements attending their exercise. The scope of a study of options in Government contracts is more complicated because of the regulatory overlay imposed. This paper organizes the examination of Government contract options along the lines of Section 1, Part 15 of the Defense Acquisition Regulations. This is a logical approach, not only because it forces some review of the applicable regulatory provisions, but also because relevant case law seems to generally follow this pattern. The chapters address the separate topics of applicability, evaluation, and exercise.