Sometimes when a renewal is processed after the contract’s period of performance (POP) has expired, the original equipment manufacturer (OEM) is able to provide a “grace period” or “reinstatement period” with little or no additional cost. This is because the OEM generally cannot alter the original POP dates, and therefore must treat the purchase as if it were a new one-year order beginning from the prior expiration date.

For the government, it is usually advantageous to maintain the original POP structure rather than resetting the dates, since a new order could trigger the loss of existing discounts, legacy pricing, or other favorable terms. In practice, agencies have handled these late renewals by awarding in alignment with OEM guidance.

For example, assuming today’s date is September 25, 2025 and the actual POP end date was September 22, 2025, the OEM may stipulate that the renewal term runs 365 days from the prior expiration date.

This can be done by using below language in award for POP dates:

  • POP: Award date - September 22, 2026
  • Alternatively, if a reinstatement period is recognized at zero cost, the order could be awarded with text Reinstatement Period: September 22, 2025 - Award Date and POP: Award Date -  September 22, 2026
These options reflect standard approaches that other agencies have used when working within OEM rules to preserve continuity and cost advantages.