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18 <br /> ORANGE COUNTY <br /> NOR C-1R0I.I N <br /> of options must be limited to quantities of goods or services that are <br /> reasonably anticipated to be required by OPT during the term of the contract. <br /> Options may not be included solely with the intent of assigning them to <br /> another entity in the future; however, contracts may include a provision <br /> allowing assignment to other agencies in the event of a change in OPT's <br /> anticipated requirements in accordance with FTA regulations and guidance. <br /> The option quantities or periods must be defined in the solicitation, contained <br /> in the offer upon which a contract is awarded, and evaluated as part of the <br /> initial award process. When an option has not been evaluated as part of the <br /> award, the exercise of the option will be considered a sole source <br /> procurement and must be justified as such. The exercise of an option must be <br /> in accordance with the terms and conditions of the option as stated in the <br /> initial contract, and an option may not be exercised unless it is determined <br /> that the option price is better than prices available in the market or that the <br /> option is the more advantageous offer at the time the option is exercised, cost <br /> and other factors considered. <br /> OPT may exercise options in contracts of other public agencies, known as <br /> "piggybacking," in accordance with FTA regulations and guidance. <br /> Piggybacking is an agency's use of another agency's existing contract when <br /> the awarding agency's contract did not originally envision its use by the <br /> piggybacking agency. In this case, agencies piggybacking on another <br /> agency's contract must ensure that the original contract contained an <br /> assignability clause and that the terms and conditions of that contract meet <br /> FTA requirements. <br /> I. Cardinal Changes (Tag-ons) <br /> Cardinal changes (or tag-ons) to a contract are impermissible. Cardinal <br /> changes are significant changes in contract work (property or services) that <br /> cause a major deviation from the original purpose of the work or the intended <br /> method of achievement or causes a revision of contract work so extensive, <br /> significant, or cumulative that, in effect, the contractor is required to perform <br /> very different work from that described in the original contract. <br /> J. Time and Materials Contracts <br /> Time and material contracts are to be used only after a documented <br /> determination that no other type of contract is suitable. Such contracts will <br /> specify a ceiling price that the contractor shall not exceed except at its own <br /> risk. <br /> 16 <br />