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   <concept id="DFARS_PGI_217.202"
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      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">PGI 217.202</ph> Use of options.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p outputclass="List2" class="- topic/p ">(1) Options may be used for foreign military sales (FMS) requirements.</p>
         <p outputclass="List2" class="- topic/p ">(2) For sole source major systems for U.S. and U.S./FMS combined procurements, contracting officers, in coordination with program managers, are encouraged to—</p>
         <p outputclass="List3" class="- topic/p ">(i) Establish priced options for two years beyond the base year, so that negotiations of major systems will be conducted approximately every three years; and</p>
         <p outputclass="List3" class="- topic/p ">(ii) In those cases where exact quantities are subject to variation, or FMS customers are not yet identified, establish range option pricing for both U.S. and FMS quantities. </p>
         <p outputclass="List2" class="- topic/p ">(3) Consider use of surge options to support industrial capability. A surge option allows the Government, prior to final delivery, to—</p>
         <p outputclass="List3" class="- topic/p ">(i) Accelerate the contractor's production rate in accordance with a surge production plan or a delivery schedule provided by the contractor under the terms of the contract; and </p>
         <p outputclass="List3" class="- topic/p ">(ii) Purchase additional quantities of supplies or services.</p>
         <p outputclass="List2" class="- topic/p ">(4) See DFARS Subpart 217.74 for limitations on the use of undefinitized options.</p>
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