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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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54 sections with “option years”: 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 52.217-9 Option To Extend the Term of the Contract.
    As prescribed in 17.208(g), insert 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 _…
  • FAR 52.222-43 Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment (Multiple Year and Option Contracts).
    …or 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 prevailing wage determinations and contracts subject to collec…
  • FAR 8.405-3 Blanket purchase agreements (BPAs).
    …. (ii) No single-award BPA with an estimated value exceeding $150 million (including any options), may be awarded unless the head of the agency determines in writing that— (A) The orders expected under the BPA are so integrally related th…
  • FAR 17.204 Contracts.
    …tract, including any extension. (b) The contract shall state the period within which the option may be exercised. (c) The period shall be set so as to provide the contractor adequate lead time to ensure continuous production. (d) The per…
  • FAR 19.301-2 Rerepresentation by a contractor that represented its status as a small business concern.
    …tion— 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 performance has been extended for a cum…
  • FAR 31.205-6 Compensation for personal services.
    …nges in the prices of corporate securities or corporate security ownership, such as stock options, stock appreciation rights, phantom stock plans, and junior stock conversions. (1) Any compensation which is calculated, or valued, based on …
  • FAR 32.703-3 Contracts crossing fiscal years.
    … (b) The head of an executive agency, except NASA, may enter into a contract, exercise an option, or place an order under a contract for severable services for a period that begins in one fiscal year and ends in the next fiscal year if the …
  • FAR 52.217-2 Cancellation Under Multiyear Contracts.
    …facilities, their specialized nature, and obsolescence. (h) This contract may include an Option clause with the period for exercising the option limited to the date in the contract for notification that funds are available for the next suc…
  • DFARS 217.207 Exercise of options.
    (c) In addition to the requirements at FAR 17.207(c), exercise an option only after— (1) Determining that the contractor's record in the System for Award Management database is active and the contractor's unique entity identifier number, C…
  • DFARS 232.703-3 Contracts crossing fiscal years.
    (b) The contracting officer may enter into a contract, exercise an option, or place an order under a contract for severable services for a period that begins in one fiscal year and ends in the next fiscal year if the period of the contract …
  • DFARS 252.225-7036 Buy American—Free Trade Agreements—Balance of Payments Program.
    …end product, a Panamanian end product, or a Peruvian end product, or, at the Contractor's option, a domestic end product. (d) The contract price does not include duty for end products or components for which the Contractor will claim duty-…
  • FAR 7.105 Contents of written acquisition plans.
    …considerations. (i) For each contract contemplated, discuss use of multiyear contracting, options, or other special contracting methods (see part 17); any special clauses, special solicitation provisions, or FAR deviations required (see sub…
  • FAR 16.504 Indefinite-quantity contracts.
    …ndefinite quantity must— (i) Specify the period of the contract, including the number of options and the period for which the Government may extend the contract under each option; (ii) Specify the total minimum and maximum quantity of sup…
  • FAR 19.812 Contract administration.
    …ion to make such products acceptable. (d) For 8(a) contracts exceeding 5 years including options, the contracting officer shall verify in DSBS or SAM that the concern is an SBA-certified 8(a) participant no more than 120 days prior to the …
  • DFARS 234.005-1 Competition.
    …om a broad agency announcement (see 235.016) may contain a contract line item or contract option using funds not limited to those identified in 235.016 for the development and demonstration or initial production of technology developed unde…
  • DFARS 247.271-1 Policy.
    …e of intra-area movement. (2) Award contracts on a calendar year basis. (3) Provide for option years. (4) Award contracts, or exercise option years, before November 1 of each year, if possible. (b) Areas of performance. Define clearly i…
  • DFARS 252.225-7001 Buy American and Balance of Payments Program.
    …ct, the Contractor shall deliver a qualifying country end product or, at the Contractor's option, a domestic end product. (d) The contract price does not include duty for end products or components for which the Contractor will claim duty-…
  • FAR 52.219-28 Postaward Small Business Program Rerepresentation.
    …ause— 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 performance has been extended for a cum…
  • FAR 52.225-3 Buy American—Free Trade Agreements—Israeli Trade Act.
    …ani, Panamanian, or Peruvian end product), an Israeli end product or, at the Contractor's option, a domestic end product. (End of clause) Alternate I [Reserved] Alternate II (JAN 2025). As prescribed in 25.1101(b)(1)(ii), substitute the …
  • DFARS 237.270 Acquisition of audit services.
    …stances, award contracts for recurring audit services for a 1-year period with at least 2 option years. (c) Approvals. Do not issue a solicitation for audit services unless the requiring activity provides evidence that the cognizant DoD au…
  • FAR 16.503 Requirements contracts.
    …(2) No requirements contract in an amount estimated to exceed $150 million (including all options) may be awarded to a single source unless a determination is executed in accordance with 16.504(c)(1)(ii)(D). (c) Government property furnish…
  • FAR 16.506 Solicitation provisions and contract clauses.
    …sory and assistance services contracts that exceed 3 years and $20 million (including all options). (g) Insert the provision at 52.216-28, Multiple Awards for Advisory and Assistance Services, in solicitations for task-order contracts for …
  • FAR 16.601 Time-and-materials contracts.
    …— (i) Signed by the contracting officer prior to the execution of the base period or any option periods of the contracts; and (ii) Approved by the head of the contracting activity prior to the execution of the base period when the base pe…
  • FAR 37.106 Funding and term of service contracts.
    … (b) The head of an executive agency, except NASA, may enter into a contract, exercise an option, or place an order under a contract for severable services for a period that begins in one fiscal year and ends in the next fiscal year if the …
  • FAR 42.003 Cognizant Federal agency.
    …ally will be the agency with the largest dollar amount of negotiated contracts, including options. For educational institutions (defined as institutions of higher education in the OMB Uniform Guidance at 2 CFR part 200, subpart A, and 20 U.…
  • FAR 52.209-7 Information Regarding Responsibility Matters.
    …s— (1) The total value of all current, active contracts and grants, including all priced options; and (2) The total value of all current, active orders including all priced options under indefinite-delivery, indefinite-quantity, 8(a), or …
  • FAR 52.222-8 Payrolls and Basic Records.
    …ty number). The required weekly payroll information may be submitted in any form desired. Optional Form WH-347 is available for this purpose and may be obtained from the U.S. Department of Labor Wage and Hour Division website at https://www…
  • FAR 52.248-1 Value Engineering.
    …s in quantities after VECP acceptance that are due to contract modifications, exercise of options, additional orders, and funding of subsequent year requirements on a multiyear contract. Collateral costs, as used in this clause, means agen…
  • DFARS 216.601 Time-and-materials contracts.
    …on and findings for time-and-materials or labor-hour contracts. (1) Base period plus any option periods is three years or less. (i) For contracts (including indefinite-delivery contracts) and orders in which the portion of the requirement…
  • DFARS 232.703-1 General.
    …ixed-price contract may be incrementally funded only if— (i) The contract (excluding any options) or any exercised option— (A) Is for severable services; (B) Does not exceed one year in length; and (C) Is incrementally funded using fund…
  • DFARS 252.239-7007 Cancellation or Termination of Orders.
    …equipment be relocated within the Contractor's service area, the Government will have the option of paying the costs of relocating the facilities or equipment in lieu of paying any termination or cancellation charge under this clause. The b…
  • FAR 8.404 Use of Federal Supply Schedules.
    …contractor exceeds at its own risk; and (C) When the total performance period, including options, is more than three years, the D&F prepared in accordance with this paragraph shall be signed by the contracting officer and approved by the h…
  • FAR 16.505 Ordering.
    …ering period of a task-order contract for advisory and assistance services, including all options or modifications, normally may not exceed 5 years. (2) The 5-year limitation does not apply when— (i) A longer ordering period is specifical…
  • FAR 17.103 Definitions.
    …ar's requirement (of a product or service) without establishing and having to exercise an option for each program year after the first. Nonrecurring costs means those costs which are generally incurred on a one-time basis and include such …
  • FAR 22.406-6 Payrolls and statements.
    …ce. The contractor may use the Department of Labor Form WH-347, Payroll (For Contractor's Optional Use), or a similar form that provides the same data and identical representation. (b) Withholding for nonsubmission. If the contractor fails…
  • FAR 22.1007 Requirement to obtain wage determinations.
    …h brings the contract above $2,500 and— (1) Extends the existing contract pursuant to an option clause or otherwise; or (2) Changes the scope of the contract whereby labor requirements are affected significantly. (c) Each multiple year c…
  • FAR 31.001 Definitions.
    … retirements, provided that the benefits are paid for life or are payable for life at the option of the employees. Additional benefits such as permanent and total disability and death payments, and survivorship payments to beneficiaries of …
  • FAR 48.104-2 Sharing acquisition savings.
    …ovide the contractor's share of savings. For future contract savings calculated under the optional lump-sum method, the sharing base is an estimate of the number of items that the contracting office will purchase for delivery during the sha…
  • FAR 52.209-12 Certification Regarding Tax Matters.
    …If the Offeror is proposing a total contract price that will exceed $7 million (including options), the Offeror shall certify that, to the best of its knowledge and belief, it— (1) Has [ ] filed all Federal tax returns required during the …

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.