You are a contracting officer at Coral Reef Air Force Base, Florida.
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You are a contracting officer at Coral Reef Air Force Base, Florida. You are responsible for the contract with

Acme Services, under which Acme provides base support services for $1,000,000 per month during the current fiscal year (FY 2007). A separate contract line item is for janitorial services for a tenant activity, the Federal Marine Fisheries Agency, which funds that portion of the contract through an Economy Act order. The contract expires on 30 September 2007.

 

Colonel Felicia Flyer, the Base Commander, calls you on 30 September 2007. Colonel Flyer asks you how the base will fund its support services tomorrow because Congress has not passed an appropriations act or a continuing resolution authority statute to fund DoD during FY 2008. She reminds you that there are one-year, priced options (one option for services at Coral Reef AFB and a separate option for services for the tenant activity) for FY 2008 services in the Acme contract. The option clause in the contract requires the government to give the contractor a nonbinding notice of intent to exercise options 60 days prior to the expiration of the term of the contract. The contracting officer gave this notice on 15 July 2007. The option clause also provides that the government must exercise the options within 30 days of the receipt of appropriations for each new fiscal year. What do you tell Colonel Flyer?

 

A few days later, in a midnight session on 3 October 2007, Congress passes a joint resolution funding DoD for 30 days, from 1 through 30 October 2007. The phone is ringing as you arrive at work the next day. Colonel Flyer again asks about funding for Acme's contract. Colonel Flyer would like to renew the base services contract for FY 2008 immediately while DoD has funding. She would also like to exercise the additional option in Acme's contract for maintenance, clubhouse services, and operation of the pro shop at the newly opened Coral Reef Golf Course.

 

While reviewing the contract file, you discover that there is a FY 2008 option for base services at $1,100,000 per month and a FY 2008 option for the Federal Marine Fisheries Activity. You also discover that the contract includes a separate one-year option for the Golf Course for FY 2008, priced at $234,000. 

 

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What assumptions can be made from this scenario? Following assumptions can be made from this scenario: 1. The Congress did... View the full answer

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