60. A particular contract action has been awarded as follows: Base Period = $200,000; Option Period 1 = $150,000; and Option Period 2 = $100,000. What is the total anticipated dollar value of this contract action?
Answer: C
The total anticipated dollar value of this contract action is $450,000.
The total anticipated dollar value of the contract action is calculated by summing the Base Period and both Option Periods. Thus, the total is $200,000 (Base Period) + $150,000 (Option Period 1) + $100,000 (Option Period 2) = $450,000.
A) $200,000
This option only reflects the Base Period amount without including the values of the Option Periods. Therefore, it does not represent the total anticipated dollar value of the contract action and is incorrect.
B) $350,000
This option incorrectly adds only the Base Period to one of the Option Periods. The correct calculation requires the inclusion of both Option Periods along with the Base Period, making this option incorrect.
C) $450,000
This is the correct answer as it accurately sums the Base Period of $200,000 and both Option Periods, $150,000 and $100,000. Therefore, $200,000 + $150,000 + $100,000 equals $450,000, reflecting the total anticipated dollar value of the contract action.
D) Determined at contract award
This option suggests that the total value is not known until contract award, which is misleading. The total anticipated dollar value can be calculated prior to the award by adding the known amounts of the Base and Option Periods, thus making this option incorrect.
Conclusion
The correct answer, $450,000, is derived from a straightforward summation of the Base Period and both Option Periods. Options A, B, and D fail to account for the complete value of the contract, while Option C encompasses all relevant figures, confirming its validity as the total anticipated dollar value.