Federal activity overview — Option Year CLIN
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Option Year CLIN Government Contracts & Federal Records
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A contract line item representing an additional year of performance that the government may exercise at its discretion. Option years extend the period of performance beyond the base year, typically for service contracts. Most government service contracts are structured as a base year plus up to four option years, providing up to five years of total performance.
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Ask about OYEach option year has separately priced CLINs that reflect expected cost escalation (typically 2-4% per year for labor rate increases). Option year pricing is evaluated during initial source selection. The government must provide advance notice (usually 60 days) before exercising each option year.
Virtually all government service contracts use option years to maintain competitive pricing while providing continuity. Option years allow the government to terminate underperforming contractors without the complexity of a termination for default. The base-plus-options structure is standard for IT services, facilities management, professional services, and logistics support.
FAR 17.204 — Contracts, FAR 52.217-9 — Option to Extend the Term of the Contract
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Bureauify. (2026). Option Year CLIN — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/option-year-clin
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