What is FAR 52.217-4?

FAR 52.217-4 (Evaluation of Option Exercised at Time of Contract Award.) is a federal acquisition regulation clause that may be included in government contracts. It falls under the options category.

When is FAR 52.217-4 required?

FAR 52.217-4 is typically required when the contracting officer determines it's applicable to the specific procurement. Check the solicitation's Section I for included clauses.

Does FAR 52.217-4 flow down to subcontractors?

Whether FAR 52.217-4 flows down depends on the specific clause language and contract type. Review the clause text for flow-down provisions.

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52.217-4 — Evaluation of Option Exercised at Time of Contract Award.

Last updated: 2026-04

Researched by the BidStride Research Team

What This Clause Requires

FAR 52.217-4 — Evaluation of Option Exercised at Time of Contract Award.. This clause is part of the Federal Acquisition Regulation and may be included in government contracts as a solicitation provision or contract clause.

Official Regulation Text

52.217-4 Evaluation of Option Exercised at Time of Contract Award. As prescribed in 17.208(b), insert a provision substantially the same as the following: Evaluation of Options Exercised at Time of Contract Award (JUN 1988) Except when it is determined in accordance with FAR 17.206(b) not to be in the Government's best interests, the Government will evaluate the total price for the basic requirement together with any option(s) exercised at the time of award. (End of provision) [53 FR 17860, May 18, 1988]
Source: eCFR, 48 CFR 52.217-4 (https://www.ecfr.gov/current/title-48/section-52.217-4)

Compliance Checklist

Flow-Down to Subcontractors

No flow-down required

This clause applies only to the prime contract and does not need to be flowed down to subcontractors.

Frequently Asked Questions

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This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.