As prescribed in 1517.208(d), insert this contract clause in cost-reimbursement type term form contracts when applicable. If only one option period is used, enter “NA” in the proper places of the clause. If more than two option periods apply, modify the clause accordingly.
Option for Increased Quantity-Cost-Type Contract (JUN 1997)
(a) By issuing a contract modification, the Government may increase the estimated level of effort by ___ direct labor hours during the base period, ___ during the first option period, and ___ during the second option period. The Government may issue a maximum of ___ orders to increase the level of effort in blocks of ___ hours during any given period. The estimated cost and fixed fee of each block of hours is as follows:
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Base Option Option
period 1 2
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Estimated cost............................... ....... ....... .......
Fixed fee.................................... ....... ....... .......
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Total.................................... ....... ....... .......
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(b) When these options are exercised, paragraph (a) of the “Level of Effort” clause and the “Estimated Cost and Fixed Fee” clause will be modified accordingly.
(c) If this contract contains “not to exceed amounts” for elements of other direct costs (ODCs), those amounts will be increased as follows:
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Other direct cost item Option 1 Option 2
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(End of clause)
[49 FR 8867, Mar. 8, 1984, as amended at 62 FR 37149, July 11, 1997; 62 FR 60667, Nov. 12, 1997]
