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Everything You Need to Know About a GSA Schedule Option Extension Blog Feature
Marissa Sims

By: Marissa Sims on June 14th, 2023

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Everything You Need to Know About a GSA Schedule Option Extension

GSA Schedule | 4 Min Read

Approximately 210 days before a 5-year option period ends, GSA Schedule holders receive an automated email notifying them of the option to extend their contract. If you are one of them, knowing you have two options is important. You can choose to let your contract expire or complete an option extension modification to continue the life of your contract for another 5 years. If you are going through the option extension process for the first time, it may seem overwhelming, but a clear understanding of the requirements can put you at ease. In this blog, I will share with you everything you need to know about a GSA Schedule option extension.

What is a GSA Schedule Option Extension?

Once you receive your GSA Schedule contract, it can last up to 20 years which is divided into four option periods. Each option period lasts for 5 years. In accordance with clause I-FSS-163, Option to Extend the Term of the Contract, GSA assesses the possibility of extending contracts toward the end of each 5-year option period.

What is Required for a GSA Schedule Option Extension?

The first step in pursuing your contract extension is submitting a cover letter on company letterhead which confirms your intent to exercise the option to extend the contract. For this letter to be valid, it must be signed by an authorized negotiator on your GSA Schedule contract. The cover letter should address the following items, if applicable.

GSA Schedule Compliance

The cover letter must include a statement verifying the following:

GSA Schedule Terms and Conditions

The letter must also address whether there should be changes made to the existing contract terms and conditions. This may include changes to the following:

  • Commercial Sales Practices (CSPs)*
  • Price reductions clause discount relationship(s)*
  • Labor Category Descriptions
  • Price list, or other contract terms and conditions

*Does not apply to contracts subject to Transactional Data Reporting (TDR) reporting requirements.

In the case there are any modifications needed in the existing terms and conditions, the letter should provide a concise explanation of the changes required. To implement the necessary changes, a separate modification request should be submitted through eMod. However, if there are no changes to the currently incorporated terms and conditions, the letter must include the following statement:

(Company name) confirms that the current terms and conditions of the contract have not changed and are current, accurate, and complete.

Transactional Data Reporting (if applicable)

For contracts under TDR pilot Special Item Numbers (SINs) that have released mass modification #A509, the letter must affirm that you have accepted the TDR terms and conditions. For contracts under SINs that have released FPT mass modification #A510, the letter must affirm that you have accepted the FPT terms and conditions and "baselined" your existing pricelist data in eMod.

Re-representation of Business Size

The cover letter must identify your current business size (small vs. “other than small”) and confirm that you have submitted a re-representation of business size modification.

Small Business Subcontracting (if applicable)

If your company is categorized as anything other than a small business, it’s mandatory to have a small business subcontracting plan approved before exercising the option. If the effective date of the previously approved subcontracting plan does not extend into the upcoming option period, then you must submit a new subcontracting plan as a stand-alone modification request through eMod. The letter must verify one of the following statements:

  • You have an existing small business subcontracting plan that will remain effective into the upcoming option period (include the type of plan and effective dates)
  • A new subcontracting plan has been submitted for approval through eMod.

Will I Automatically Get the Option to Extend my GSA Schedule?

Once your Contracting Officer receives notice that your option period is coming to an end, a contract review is initiated. GSA conducts these assessments to determine if your contract meets the requirements necessary to extend the contract for another 5-year option period. In the event that your contract fails to meet the specified terms and conditions and is deemed ineligible, GSA has the option to exclude your contract from an extension. Only once your extension is awarded can the contract continue for another option period.

What if this is my Last Option Extension?

When your GSA Schedule contract reaches its 20th year, all options to extend will be exhausted. At that point, you can either let the contract expire or submit a streamlined GSA Schedule proposal. This streamlined process is much faster than the initial proposal process. However, it still requires many of the same documents as a new offer.

Get Ready for Your Next Contract Extension

When going through the option extension process, it is crucial to view it as an opportunity to assess your contract's compliance, address any inconsistencies, seek essential clarifications, and communicate effectively with your contracting officer. Meeting the requirements for an option extension is an important part of ensuring your contract can last the entire 20 years.

However, as GSA Schedule holders ourselves, we understand that contractors already have a lot on their plates. If you have received an option letter from your GSA Contracting Officer and need help with your contract extension, feel free to reach out to our team at Winvale for assistance or to answer any questions you may have.

A Complete Checklist for Maintaining Your GSA Schedule CTA


About Marissa Sims

Marissa Sims is a Lead Consultant for Winvale. She is originally from Washington, DC and is a graduate from St. Mary’s College of Maryland Public Honors College, with a degree in International Language and Culture.