What is the first step a contracting officer should take when faced with an option that has not been exercised on time?

The appropriate first step for a contracting officer facing an option that has not been exercised on time is to determine if the contractor is willing to proceed with the work. This approach is crucial because it directly engages the contractor and assesses their interest in continuing under the original terms of the option. It opens a dialogue that can clarify the situation and may provide insights into the contractor's willingness to move forward despite the missed deadline.

Engaging with the contractor allows the contracting officer to gauge the implications of the delay and whether a solution can be reached that benefits both parties. This step prioritizes communication, which can often lead to an informal resolution or understanding, potentially avoiding more drastic actions such as termination or renegotiation.

The other options may be necessary at different points, but they do not represent the most immediate course of action. For instance, contacting legal counsel or preparing a termination notice could escalate the situation prematurely without exploring the contractor's willingness first. Similarly, negotiating a new contract might be unnecessary if the contractor is still inclined to proceed with the original agreement. Thus, starting with a conversation about the contractor's willingness is the most practical and constructive first step.