(1) A contract that is initially awarded from the competitive selection of a proposal resulting from a general solicitation may contain a contract line item or contract option for the provision of advanced component development or prototype of technology developed under the contract or the delivery of initial or additional prototype items if the item or a prototype thereof is created as the result of work performed under the contract only when it adheres to the following limitations:
(i) The contract line item or contract option shall be limited to the minimal amount of initial or additional prototype items that will allow for timely competitive solicitation and award of a follow-on development or production contract for those items.
(ii) The term of the contract line item or contract option shall be for not more than 12 months.
(iii) The dollar value of the work to be performed pursuant to the contract line item or contract option shall not exceed the lesser of-
(A) The amount that is three times the dollar value of the work previously performed under the contract; or
(B) $20 million.
(2) A contract line item or contract option may not be exercised under this authority
after September 30, 2014.
