Contract Extension Options (5+5+5) refer to the GSA Multiple Award Schedule (MAS) contract structure that allows a contractor’s agreement to be extended up to a total of 20 years. The base term of a MAS contract is five years. After the initial period, GSA offers the contractor the opportunity to extend the contract through three additional five-year option periods. This creates a potential full contract life of five years base plus fifteen years of options.
Purpose and Benefit of the Extension Structure
The primary purpose of the 5+5+5 contract extension model is to promote long-term stability and continuity within the GSA Schedule program. By allowing contractors to remain on the Schedule for up to 20 years, the government minimizes the need for repetitive contract awards while fostering long-term vendor relationships.
This structure benefits both contractors and agencies by:
- Supporting long-term procurement planning
- Encouraging vendors to invest in the contract
- Reducing administrative burden
- Allowing agencies to continue working with proven suppliers
Contractors who meet all compliance and performance requirements can enjoy uninterrupted access to the federal market for two decades under one contract number.
Timeline Breakdown
The full GSA MAS contract lifecycle under this model includes:
- Base Period: 5 years from date of award
- Option Period 1: 5 additional years if exercised
- Option Period 2: 5 additional years if exercised
- Option Period 3: 5 additional years if exercised
Each option is exercised at the sole discretion of the GSA Contracting Officer. Contractors must continue to meet eligibility criteria, including minimum sales requirements and good standing, to be considered for extension.
Requirements for Exercising Options
Before each five-year option can be exercised, GSA conducts a contract review. This review includes:
- Sales Performance: Contractors must meet the minimum sales threshold. Typically, this means achieving at least $100,000 in GSA sales during the base period or each option period.
- Compliance History: GSA reviews the contractor’s adherence to reporting, pricing, and administrative requirements.
- Modifications and Updates: All pending modifications should be resolved before option consideration.
- SAM Registration: Contractors must maintain an active registration in the System for Award Management (SAM.gov).
- Performance Evaluations: GSA may consider past performance data, audit history, and customer satisfaction.
Contractors that do not meet these requirements may be denied the extension and have their contracts expire at the end of the current period.
Contractor Responsibilities
Contractors should not assume that extensions are automatic. To maintain eligibility for each five-year option period, companies must:
- Monitor contract expiration dates
- Maintain up-to-date pricing and catalog information
- Submit all required reports and Industrial Funding Fee (IFF) payments
- Actively market their offerings to generate ongoing sales
- Respond to GSA requests for option renewal documentation
Failure to remain compliant may result in the contract being allowed to expire without renewal.
GSA Notification and Process
Approximately six months before the end of a contract period, GSA will issue a notification about the upcoming expiration and whether the agency intends to exercise the next option. Contractors may be asked to provide updated administrative information, confirm pricing, or submit a contract refresh modification.
If the contractor is in good standing and agrees to the option terms, the Contracting Officer will issue a bilateral modification to formally exercise the option period.
Strategic Considerations for Contractors
Planning ahead for contract extensions is essential. Contractors should:
- Track their sales progress early in each contract phase
- Build and document strong performance metrics
- Stay ahead of compliance requirements
- Maintain accurate and timely catalog and pricing data
- Use each option period as a milestone for contract optimization and re-engagement with GSA
For contractors with a long-term strategy in the federal market, the full 20-year lifecycle of a MAS contract represents significant opportunity for growth and stability.
Conclusion
The Contract Extension Options (5+5+5) model is a key feature of the GSA MAS program, offering contractors the ability to maintain their government contract for up to 20 years. Each five-year option period is a chance to demonstrate continued value, performance, and compliance. Contractors who understand and prepare for this structure can build sustainable federal sales pipelines and benefit from long-term partnerships with GSA and government customers.
