48 CFR · Federal Acquisition Regulation and Defense supplement

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The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

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264 sections with “contract option”: the first 40

  • FAR 22.404-12 Labor standards for contracts containing construction requirements and option provisions that extend the term of the contract.
    (a) Each time the contracting officer exercises an option to extend the term of a contract for construction, or a contract that includes substantial and segregable construction work, the contracting officer must modify the contract to incor…
  • FAR 36.701 Standard and optional forms for use in contracting for construction or dismantling, demolition, or removal of improvements.
    …mit offers, and award construction or dismantling, demolition, or removal of improvements contracts expected to exceed the simplified acquisition threshold, and may be used for contracts at or below the simplified acquisition threshold. In …
  • FAR 52.217-9 Option To Extend the Term of the Contract.
    …nsert a clause substantially the same as the following: Option To Extend the Term of the Contract (MAR 2000) (a) The Government may extend the term of this contract by written notice to the Contractor within ___ [insert the period of time…
  • FAR 52.222-43 Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment (Multiple Year and Option Contracts).
    …ibed in 22.1006(c)(1), insert the following clause: Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment (Multiple Year and Option Contracts) (AUG 2018) (a) This clause applies to both contracts subject to area p…
  • FAR 22.1006 Solicitation provisions and contract clauses.
    (a)(1) The contracting officer shall insert the clause at 52.222-41, Service Contract Labor Standards, in solicitations and contracts (except as provided in paragraph (a)(2) of this section) if the contract is subject to the Service Contrac…
  • FAR 4.804-4 Physically completed contracts.
    (a) Except as provided in paragraph (b) of this section, a contract is considered to be physically completed when— (1)(i) The contractor has completed the required deliveries and the Government has inspected and accepted the supplies; (ii…
  • FAR 9.104-7 Solicitation provisions and contract clauses.
    (a) The contracting officer shall insert the provision at 52.209-5, Certification Regarding Responsibility Matters, in solicitations where the contract value is expected to exceed the simplified acquisition threshold. (b) The contracting o…
  • FAR 9.405-1 Continuation of current contracts.
    (a) Contractors debarred, suspended, proposed for debarment, or voluntarily excluded. (1) Notwithstanding the debarment, suspension, proposed debarment, or voluntary exclusion, of a contractor, agencies may continue contracts or subcontract…
  • FAR 11.701 Supply contracts.
    (a) A fixed-price supply contract may authorize Government acceptance of a variation in the quantity of items called for if the variation is caused by conditions of loading, shipping, or packing, or by allowances in manufacturing processes.…
  • FAR 12.301 Solicitation provisions and contract clauses for the acquisition of commercial products and commercial services.
    (a) In accordance with 41 U.S.C. 3307, contracts for the acquisition of commercial products or commercial services shall, to the maximum extent practicable, include only those clauses— (1) Required to implement provisions of law or executi…
  • FAR 15.408 Solicitation provisions and contract clauses.
    (a) Changes or Additions to Make-or-Buy Program. The contracting officer shall insert the clause at 52.215-9, Changes or Additions to Make-or-Buy Program, in solicitations and contracts when it is contemplated that a make-or- buy program wi…
  • FAR 16.406 Contract clauses.
    …nsert the clause at 52.216-16, Incentive Price Revision—Firm Target, in solicitations and contracts when a fixed-price incentive (firm target) contract is contemplated. If the contract calls for supplies or services to be ordered under a pr…
  • FAR 16.503 Requirements contracts.
    (a) Description. A requirements contract provides for filling all actual purchase requirements of designated Government activities for supplies or services during a specified contract period (from one contractor), with deliveries or perform…
  • FAR 16.504 Indefinite-quantity contracts.
    (a) Description. An indefinite-quantity contract provides for an indefinite quantity, within stated limits, of supplies or services during a fixed period. The Government places orders for individual requirements. Quantity limits may be stat…
  • FAR 16.506 Solicitation provisions and contract clauses.
    (a) Insert the clause at 52.216-18, Ordering, in solicitations and contracts when a definite-quantity contract, a requirements contract, or an indefinite-quantity contract is contemplated. (b) Insert a clause substantially the same as the …
  • FAR 16.601 Time-and-materials contracts.
    (a) Definitions for the purposes of Time-and-Materials Contracts. Direct materials means those materials that enter directly into the end product, or that are used or consumed directly in connection with the furnishing of the end product o…
  • FAR 17.109 Contract clauses.
    (a) The contracting officer shall insert the clause at 52.217-2, Cancellation Under Multiyear Contracts, in solicitations and contracts when a multiyear contract is contemplated. (b) Economic price adjustment clauses. Economic price adjust…
  • FAR 17.202 Use of options.
    …to the limitations of paragraphs (b) and (c) of this section, for both sealed bidding and contracting by negotiation, the contracting officer may include options in contracts when it is in the Government's interest. When using sealed biddin…
  • FAR 17.204 Contracts.
    (a) The contract shall specify limits on the purchase of additional supplies or services, or the overall duration of the term of the contract, including any extension. (b) The contract shall state the period within which the option may be …
  • FAR 17.207 Exercise of options.
    (a) When exercising an option, the contracting officer shall provide written notice to the contractor within the time period specified in the contract. (b) When the contract provides for economic price adjustment and the contractor request…
  • FAR 17.208 Solicitation provisions and contract clauses.
    …ntially the same as the provision at 52.217-4, Evaluation of Options Exercised at Time of Contract Award, in solicitations when the solicitation includes an option clause, the contracting officer has determined that there is a reasonable li…
  • FAR 19.301-2 Rerepresentation by a contractor that represented its status as a small business concern.
    (a) Definition. As used in this subsection— Long-term contract means a contract of more than five years in duration, including options. However, the term does not include contracts that exceed five years in duration because the period of p…
  • FAR 19.505 Limitations on subcontracting and nonmanufacturer rule.
    … dollar value, to the following awards under subparts 19.8, 19.13, 19.14, and 19.15: (i) Contracts that are set aside. (ii) Contracts that are awarded on a sole-source basis. (iii) Orders that are set-aside as described in 8.405-5 and 16…
  • FAR 19.704 Subcontracting plan requirements.
    (a) Each subcontracting plan required under 19.301-2(e) and 19.702(a)(1)(i), (ii), and (iii) shall include— (1) Separate percentage goals for using small business (including ANCs and Indian tribes), veteran-owned small business, service-di…
  • FAR 19.705-2 Determining the need for a subcontracting plan.
    The contracting officer shall take the following actions to determine whether a proposed contractual action requires a subcontracting plan: (a)(1) Determine whether the proposed total contract-dollars will exceed the subcontracting plan th…
  • FAR 19.705-7 Compliance with the subcontracting plan.
    …all business, small disadvantaged business, and women-owned small business concerns as subcontractors in Government contracts is a matter of national interest with both social and economic benefits. When a contractor fails to make a good fa…
  • FAR 19.809-2 Limitations on subcontracting and nonmanufacturer rule.
    (a) Limitations on subcontracting. To be awarded a contract or order under the 8(a) program, the 8(a) participant is required to perform— (1) For services (except construction), at least 50 percent of the cost incurred for personnel with i…
  • FAR 19.812 Contract administration.
    (a) The contracting officer shall assign contract administration functions, as required, based on the location of the 8(a) contractor (see Federal Directory of Contract Administration Services Components (available via the Internet athttps:…
  • FAR 22.407 Solicitation provision and contract clauses.
    (a) Insert the following clauses in solicitations and contracts in excess of $2,000 for construction within the United States: (1) 52.222-6, Construction Wage Rate Requirements. (2) 52.222-7, Withholding of Funds. (3) 52.222-8, Payrolls …
  • FAR 27.201-2 Contract clauses.
    (a)(1) Insert the clause at 52.227-1, Authorization and Consent, in solicitations and contracts except that use of the clause is— (i) Optional when using simplified acquisition procedures; and (ii) Prohibited when both complete performanc…
  • FAR 28.101-2 Solicitation provision or contract clause.
    (a) The contracting officer shall insert a provision or clause substantially the same as the provision at 52.228-1, Bid Guarantee, in solicitations or contracts that require a bid guarantee or similar guarantee. For example, the contracting…
  • FAR 32.504 Subcontracts under prime contracts providing progress payments.
    (a) Subcontracts may include either performance-based payments, provided they meet the criteria in 32.1003, or progress payments, provided they meet the criteria in subpart 32.5 for customary progress payments, but not both. Subcontracts fo…
  • FAR 32.703-3 Contracts crossing fiscal years.
    (a) A contract that is funded by annual appropriations may not cross fiscal years, except in accordance with statutory authorization (e.g., 41 U.S.C. 6302, 31 U.S.C. 1308, 42 U.S.C. 2459a, 42 U.S.C. 3515, and paragraph (b) of this subsectio…
  • FAR 37.106 Funding and term of service contracts.
    (a) When contracts for services are funded by annual appropriations, the term of contracts so funded shall not extend beyond the end of the fiscal year of the appropriation except when authorized by law (see paragraph (b) of this section fo…
  • FAR 39.103 Modular contracting.
    (a) This section implements 41 U.S.C. 2308. Modular contracting is intended to reduce program risk and to incentivize contractor performance while meeting the Governments need for timely access to rapidly changing technology. Consistent wit…
  • FAR 42.1305 Contract clauses.
    (a) The contracting officer shall insert the clause at 52.242-14, Suspension of Work, in solicitations and contracts when a fixed-price construction or architect-engineer contract is contemplated. (b)(1) The contracting officer may, when c…
  • FAR 43.103 Types of contract modifications.
    Contract modifications are of the following types: (a) Bilateral. A bilateral modification (supplemental agreement) is a contract modification that is signed by the contractor and the contracting officer. Bilateral modifications are used t…
  • FAR 49.603-1 Fixed-price contracts—complete termination.
    [Insert the following in Block 14 of SF 30 for settlements of fixed-price contracts completely terminated.] (a) This supplemental agreement settles the settlement proposal resulting from the Notice of Termination dated ____________________…
  • FAR 49.603-3 Cost-reimbursement contracts—complete termination, if settlement includes cost.
    [Insert the following in Block 14 of SF 30 for settlement of cost-reimbursement contracts that are completely terminated, if settlement includes costs.] (a) This supplemental agreement settles the settlement proposal resulting from the Not…
  • FAR 49.603-4 Cost-reimbursement contracts—complete termination, with settlement limited to fee.
    [Insert the following in Block 14 of SF 30 for settlement of cost-reimbursement contracts that are completely terminated, if settlement is limited to fee.] (a) This supplemental agreement settles the amount of fee due under the contract, t…

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.