If preparing to exercise an option year on a contract, what must you have to exercise the option?

If preparing to exercise an option year on a contract, what must you have to exercise the option?

• A. Issued the Letter of Intent w/in the terms and conditions.
• B. You must have confirmed the requirement or need is still valid.
• C. Funding is available.
• D. All of the above are documented in a D&F prior to exercising the option.

Answer: (D)

Exercising an option year requires a documented, defendable basis that the work is still needed and can be funded under the contract’s terms. The formal record that ties this together is the Determination and Findings (D&F). It should show that the requirement remains valid, funding is available, and there is a commitment (such as a Letter of Intent) that aligns with the option’s terms and conditions. Because the D&F captures all these elements before you exercise the option, this approach ensures accountability and proper authorization.

Exercising an option year requires a documented, defendable basis that the work is still needed and can be funded under the contract’s terms. The formal record that ties this together is the Determination and Findings (D&F). It should show that the requirement remains valid, funding is available, and there is a commitment (such as a Letter of Intent) that aligns with the option’s terms and conditions. Because the D&F captures all these elements before you exercise the option, this approach ensures accountability and proper authorization.