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How long can a government contract be extended?
This decision is an important reminder that pursuant to FAR § 52.217-8, the government is entitled to unilaterally extend your contract up to six months, in any increment, before all option years have been exercised and at the rates in effect in the contract.
Can you extend an expired government contract?
Reviving an expired contract is a tricky business legally. If a contract has expired, then it means there was no renewal clause built into it. If both parties agree to it, the start of the new term can be backdated so that there is no period of time in which they are not covered by the contract.
How long can the government extend a contract?
This decision is an important reminder that pursuant to FAR § 52.217-8, the government is entitled to unilaterally extend your contract up to six months, in any increment, before all option years have been exercised and at the rates in effect in the contract.
What happens if a contract expires?
The parties' obligations do not end when the contract expires. They must bargain in good faith for a successor contract, or for the termination of the agreement, while terms of the expired contract continue.
Is an expired contract enforceable?
However, it is not legally possible to revive an expired contract in the eyes of the law, once a contract has expired, it no longer exists. And operating under an expired contract may lead to a substantial breach if it continues.
What is an option year on a government contract?
Option years are a common feature of service contracts with the federal government. Many such contracts provide for a base period of performance and then allow the Government to exercise one or more options to extend the contract term.
What is an extension clause?
extension clause. Provision in a contract that allows the contracting parties the option of continuing the contract after its stated expiration date.
What is an extension clause in real estate?
An extender clause is a type of provision in an exclusive real estate listing agreement. In order for the agent to receive their commission, the buyer must be someone to whom the agent showed the property during their time as the listing agent. An extender clause is also known as a protection clause or a safety clause.
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