(i) See IG 5317.207 for additional guidance on exercise of options.
(j) Clearance-See AFFARS 5301.9000(a) and (b): Exercise of a priced or a NTE option does not require clearance as long as the options are exercised in strict accordance with the original option terms and conditions. Definitization of NTE options require both business and contract clearance.
(k) NTE Options -
(1) The exercise of an NTE option prior to definitization requires UCA approval.
(2) The exercise of a non-competitively awarded NTE option must be supported by a J&A. The J&A can be a Class J&A from the original acquisition or an Individual J&A for the option. Before exercising an NTE option, the contracting officer shall ensure that the effort covered by the NTE option has been synopsized in accordance with FAR 5.201, unless one of the exemptions in FAR 5.202 applies.
(3) The exercise of a competitively awarded NTE must be supported by a J&A unless the option was considered in the initial award and addressed in the price competition memorandum (PCM).
(l) TBN Options -
(1) When converting a TBN option to an NTE or priced option, the contracting officer shall return to the appropriate clearance authority for approval to conclude negotiations.
(2) Exercise of a TBN option that has been converted to an NTE or priced option must be covered by a new or existing J&A or considered in the initial award and addressed in the PNM or other pricing documentation.
