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Single Source Contract Options

A question that needs to be asked is whether it is now sensible for the contractor under a single source contract to take the risk involved in providing options to allow the Authority to extend long term contracts. For example the contractor is responding to a tender for a five year contract for In Service Support and the Authority has requested options for year 6 and 7. Do the risks involved in providing the option outweigh any benefit to the contractor in providing the option. Are there any benefits to the contractor in providing the option - I believe they are becoming increasing difficult to identify. Its a issue that's worth considering when determining the scope of the contract that the contractor wishes to tender for.