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DSCC

DSCC 52.216-9C01: EPA - DEPARTMENT OF LABOR PRICE INDEX

I16D01   52.216-9C01   ECONOMIC PRICE ADJUSTMENT - DEPARTMENT OF LABOR
PRICE INDEX   (MAY 2001)   DSCC
Old code:  I21

(a) The contractor warrants that the contract prices do not include any
contingency allowances to account for any economic fluctuations due to
inflation or deflation, to the extent covered by this clause.

(b) Definitions: As used in this clause,

(1) The term "contract date" means:

(i) the date of bid opening for sealed bid solicitations. If the
solicitation contains a set-aside portion, the contract date for the set-
aside portion will be the date of bid opening for the non-set-aside
portion.

(ii) the date of award for negotiated solicitations. If the solicitation
contains a set-aside portion, the contract date for the set-aside portion
will be the date of award of the non-set-aside portion.

(iii) the effective date of contract modifications adding additional CLINs
to the contract; however, for CLINs added pursuant to the Option for
Increased Quantity clause of sealed bid contracts the date specified in
paragraph (i) above shall apply and on negotiated contracts, the date
specified in paragraph (ii) above, shall apply.

(2) The words "contract delivery date" refer only to the delivery schedule
originally stated in the contract as of date of award or as stated in
option exercises as of date issued plus any extension attributable solely
to reasons determined by the contracting officer to be excusable within the
meaning of paragraph (e) of the "Default" clause
(FAR 52.249-8). The words "contract delivery date" do not include my
extension of the delivery schedule, however accomplished, except for such
excusable causes.

(c) The economic indicator for the purpose of price adjustment shall be
Producer Price Index indicated below in the monthly report entitled
"Producer Prices and Price Indexes" published by the Bureau of Labor
Statistics, (BLS), U.S. Department of Labor. The applicable Producer Price
Index under Table 4 is:
 Code No.___________________
 Commodity ___________________

(d) The base price index for the purpose of price adjustments is the final
index for the calendar month of the contract date,

(e) The revised final index is the index specified in (c) above as
published by the BLS four months after the preliminary index is published,
which reflects changes as a result of late reports and corrections.

(f) The adjusting price index means:
(1) for deliveries on or before the contract delivery date, the revised
final index specified in paragraph (c) for the calendar month preceding the
calendar month (1) on which Government acceptance is performed when origin
acceptance is required, (2) of contract delivery date, or (3) in which the
supplies are delivered, whichever is earlier.

(2) for delinquent deliveries, the revised final index specified in
paragraph (c) for the calendar month preceding the calendar month (1) in
which the supplies are delivered, or (2) of contract delivery date,
whichever is lower.

(3) The original unit prices (as of contract date) for supplies (excluding
data CLINs and First Article Test reports) shall be subject to adjustment
upward or downward by the percent of difference between the base price
index and the adjusting price index. If the original unit prices are
decreased during performance pursuant to the "Changes" clause or other
clauses of the contract, the decreased unit prices shall be used for
adjustment purposes in lieu of the original unit prices. Any increase in
the original unit prices after date of award will not be subject to
adjustment unless authorized by the modification.

(g) Price increases shall be subject to the following limitations:

(1) Increases shall not exceed _______ percent of the contract unit price
as of the contract date.

(2) The contractor's entitlement to price increases shall be waived, unless
the contractor's written request therefor is received by the contracting
officer within 60 days after the date of final shipment of supplies under
the contract.

(h) Price decreases:

(1) The contractor must promptly notify the contracting officer of changes
in the economic indicator which will result in price decreases.  Price
decreases may be effected by the contracting officer any time before
payment of the final adjusting invoice.

(2) The contractor shall include a statement on the final adjusting invoice
that amounts invoiced under this contract reflect all decreases required by
this clause.

(i) Price adjustments pursuant to this clause will be made by contract
modification issued by the contracting officer which will show the base
price index, the adjusting price index, and the percent of difference.
However, no adjustment will be made until proof of shipment is provided.
Adjustments under this clause at the option of the Government may be
deferred until delivery of all supplies is completed, or until termination
of any undelivered quantity, whichever is later. Interest will not accrue
on any adjustment made under this clause in the absence of a dispute as to
the computation thereof.

(j) No adjustment will be made under this clause unless the total change in
the contract amount is $250.00 or more.
(k) If the contracting officer determines that the index consistently and
substantially fails to reflect market conditions, the contracting officer
may amend the contract to specify use of an appropriate substitute index,
effective on the date the index specified in the contract begins to
consistently and substantially fail to reflect market conditions.

(End of Clause)