Contractor was awarded an indefinite delivery/indefinite quantify (IDIQ) roofing service contract that specified an estimate of potential orders.  When the government exercised an option a protester asserted the option was improper because quantities ordered were less than originally ordered and no adequate market survey was performed to determine if the agency could have obtained better prices.  The agency defended its action on the grounds (1) the awardee's price was the lowest on the original competition (2) the awardee's most recent price increase was lower than the Consumer Price Index and (3) a need of continuity of operations existed.  The GAO decided it was reasonable for the agency to exercise the option and set the following criteria for exercizing options: the agency needed to establish (1) better pricing would not be produced by a new solicitation (2) the option price is shown to be lower after performing an informal market survey or (3) the time elapsed between contract award and exercise of an option is short enough and the market is stable enough that the option price is the most advantageous (Alice Roofing & Sheet Metal Works Inc., GAO, B-283153).  

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