Just spoke with a contracting friend. They confirmed my thinking. Navy is hedging with the 1 year extension for 1 of 2 reasons. 1st....new provider and there needs to be a sufficient transition time to reduce risk during transition. The release doesn't say how many options are in the 12 month period either... It could be set up for 4 options of 3 months each. 2nd scenario, navy is hedging against a potential protest after award in March. If GAO upholds a protest, it usually takes a full 12 months to redo contract award. Who is protesting is the question! Either situation is positive if you think about it. My bet is that they may be expecting a protest from incumbent because govt typically doesn't worry about protests from smaller incapable contractors. Navy contracting is renowned for getting who they want and do a ton of sole source actions. The fact that a competitive contract is happening and a 12 month risk reduction hedge has been awarded is very interesting! Again... All IMO.