(a) For multiple award schedule contracts, you should:
(1) Include an economic price adjustment (EPA) clause only in multiyear solicitations and contracts.
(2) Document in the acquisition plan the determination required by FAR 16.203-3.
(3) Provide supporting rationale in the contract file to include an EPA clause in a 1-year solicitation or contract.
(b) The contracting director must approve any of the following actions:
(1) A determination to include an EPA clause in a 1-year solicitation or contract or to provide for price increases during the first 12 months of a multiyear contract.
(2) The use in a contract of any EPA clause that you did not include in the initial solicitation. This includes any clause that provides for price adjustment during the first 12 months of a multiyear contract.
(c) The contracting director may raise the price ceiling (the aggregate of permitted price increases during a 12-month period) during the contract period when both of the following conditions are met:
(1) A supplier or suppliers request that the ceiling be raised.
(2) Analysis of current market conditions reveals that most suppliers of similar supplies or services are affected. If the price ceiling is raised, you must amend the contract to reflect the revised ceiling.
