Check a services contract for a stated term and the option limit
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the contract, copy any end date, any option period, and any clause that extends performance. Do not decide that the contract is still good value.
- What the lawyer must review
- The lawyer checks the term against FAR 17.204. The contract shall specify limits on the purchase of additional supplies or services, or the overall duration of the term, including any extension. It shall state the period within which an option may be exercised. Unless otherwise approved in accordance with agency procedures, the total of the basic and option periods shall not exceed five years for services, and the total of the basic and option quantities shall not exceed the requirement for five years for supplies. Those limitations do not apply to information-technology contracts. The section also says statutes applicable to particular classes of contracts may place further limits, and it points to the Service Contract Labor Standards statute. That statute was not opened. FAR 1.108(c) still requires every option to be counted in the anticipated dollar value. The opened pages do not require a free-standing termination right in a contract that already states an end date.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Calculate operative dates independently from the current rule and actual triggering event. Check exceptions and record the verified deadline.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.