A typical contract structure is one base year plus four option years, giving a total potential duration of five years. The government is only committed to the base year — option years are exercised at the government's discretion based on performance, funding availability, and continuing need. Option pricing is typically proposed upfront, so your rates for year 5 are established at the time of award.
A contractor wins a security guard contract with a one-year base period and four one-year options. After performing well in year one, the contracting officer exercises option year one, extending the contract for another year at the pre-negotiated rate.
Search federal, state & local bids across 1,400+ procurement portals.
Search Contracts Free →View All Glossary Terms → · How to Find Government Contracts (Complete Guide) →
New opportunities from 1,400+ portals delivered to your inbox. Free.
No spam. Unsubscribe anytime.