Option Extension

An Option Extension is the formal process by which the General Services Administration (GSA) extends an existing Multiple Award Schedule (MAS) contract for an additional five-year period within the contract’s maximum 20-year lifespan. Each MAS contract is initially awarded for a five-year base period, with up to three five-year option periods, allowing for a potential total term of 20 years.

When a contract is extended via the option process, the contract number remains unchanged, distinguishing it from a Streamlined Acquisition, which results in the issuance of a new contract number.

Purpose of an Option Extension

The Option Extension allows GSA to continue its relationship with a contractor whose performance has been satisfactory and who remains in good standing. This process is designed to:

• Reduce administrative burden on both GSA and the contractor
• Preserve continuity for federal buyers familiar with the contractor
• Encourage long-term participation in the MAS program
• Avoid gaps in catalog availability on GSA Advantage! and related platforms

Option periods are exercised at GSA’s discretion and are not automatic. Contractors must demonstrate ongoing compliance and performance to be eligible.

GSA Contract Term Structure

The standard structure of a MAS contract is:

• Base Period: 5 years
• Option Period 1: Years 6–10
• Option Period 2: Years 11–15
• Option Period 3: Years 16–20

Each Option Extension is executed through a formal modification process and typically includes a reassessment of contract health and contractor performance.

Key Requirements for an Option Extension

To be eligible for an Option Extension, contractors must meet several conditions, including:

• Compliance with reporting and IFF payments via the FAS Sales Reporting Portal
• Positive performance history, including Contractor Assessment Visit (CAV) results
• Updated GSA Advantage! catalog, with accurate pricing and TAA-compliant items
• Acceptance of all recent Solicitation Refresh Mass Mods
• Completion of any outstanding contract modifications
• SAM.gov registration is active and up to date
• No outstanding legal or financial issues (e.g., debarment, bankruptcy)

GSA Contracting Officers often request updated representations and certifications (Reps & Certs), financial statements, and any necessary price updates before executing the option.

Option Extension vs. Streamlined Acquisition

Feature	Option Extension	Streamlined Acquisition
Contract Number	Remains the same	New contract number issued
Eligibility	For active, compliant, performing contracts	Often used when a contract expires or lapses
GSA Processing Time	Generally faster	Requires full review and award process
Catalog Migration	Catalog continues without interruption	Requires new catalog submission
Historical Sales Tracking	Maintained under same contract number	Starts over with new contract

While Option Extensions are preferable for maintaining continuity, Streamlined Acquisitions may be necessary if a contractor fails to meet extension criteria or misses critical deadlines.

Best Practices to Prepare for an Option Extension

Contractors approaching the end of their current contract period should:

• Monitor option timelines and communicate proactively with their Contracting Officer
• Submit any needed modifications (e.g., price updates, SIN changes) before the option review
• Ensure all compliance obligations (e.g., sales reporting, Advantage! maintenance) are current
• Update Reps & Certs in SAM.gov and eMod
• Address any outstanding audit or CAV findings
• Review recent Solicitation Refresh requirements and accept related Mass Mods

Preparation should begin 6 to 9 months before the contract expiration date to avoid administrative delays or interruptions.

Communication and Timing

GSA typically notifies contractors of the upcoming option review several months before the expiration of the current contract period. Contractors may be asked to provide:

• An Option Letter response confirming their desire to extend
• Updated catalogs or documentation
• Responses to compliance questionnaires or performance verification

Once approved, the Option Extension is processed via eMod, and the contract’s expiration date is updated accordingly.

Conclusion

An Option Extension is a key milestone in a GSA Schedule contract’s lifecycle. It provides contractors with continued access to the federal marketplace while ensuring that GSA maintains a high-performing vendor base. By staying compliant, maintaining accurate catalogs, and planning ahead, contractors can smoothly extend their MAS contract into the next five-year period—ensuring business continuity and long-term success in the federal sector.