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DSCR

DSCR I84B: CUSTOMER VALUE CONTRACT (CVC) PRICE REDETERMINATION - PROSPECTIVE

I84B   52.216-9G11   CUSTOMER VALUE CONTRACTING   DSCR (JAN 1996)
AND                  (CVC) PRICE REDETERMINATION
I16F37               -PROSPECTIVE


    (a) General.  The unit prices and the total price stated in 
this contract shall be periodically redetermined in accordance with 
this clause, except that (1) the prices for supplies and services 
ordered before the first effective date of price redetermination 
[see paragraph (b) of this clause] shall remain fixed and (2) in 
no event shall the total amount paid under this contract exceed 
any ceiling price included in the contract (paragraph g).

    (b)  Price redetermination periods.  For the purpose of price
redetermination, performance of this contract is divided into 
successive periods that correspond to the option periods.  The 
first period shall extend from the date of the contract award to 
the end of the ordering period (normally 365 days after award), 
and the second and each succeeding period shall extend for 12 
months from the end of the last preceding period.  The first 
day of the second and each succeeding period shall be the 
effective date of price redetermination for that period.

    (c)  Data submission.

         (1)  Not more than 90 days nor less than 60 days before 
the end of each redetermination period, except the last, the 
Contractor shall submit proposed prices for supplies or services 
that may be ordered in the next succeeding period.

         (2)  The Contractor shall also submit documentation to 
support the requested price increase/decrease (i.e., commercial 
price list changes; GSA price changes if items are also on a GSA 
contract; informal cost information if same was provided and 
utilized to determine the original contract prices as fair and 
reasonable).

         (3)  If the Contractor fails to submit the data 
required by subparagraphs (1) and (2) above, within the time 
specified, the Contracting Officer may exercise the option 
provisions without a price redetermination.

    (d)  Price redetermination.  Upon the Contracting Officer's 
receipt of the data required by paragraph (c) above, the 
Contracting Officer and the Contractor shall promptly negotiate 
to redetermine fair and reasonable prices for supplies or 
services that may be ordered in the period following the effective 
date of price redetermination.

    (e)  Contract modifications.  Each negotiated redetermination 
of prices shall be evidenced by a modification to this contract, 
signed by the Contractor and the Contracting Officer, stating the 
redetermined prices that apply during the redetermination period.

    (f)  Disagreements.  If the Contractor and the Contracting 
Officer fail to agree upon redetermined prices within 60 days 
after the date on which the data required by paragraph (c) above 
are to be submitted, the Contracting Officer shall promptly issue 
a decision in accordance with the Disputes Clause.  For the purpose 
of paragraph (e) above, and pending final settlement of the 
disagreement on appeal, by failure to appeal, or by agreement, 
this decision shall be treated as an executed contract modification.
Pending final settlement, price redetermination for subsequent 
periods, if any, shall continue to be negotiated as provided in 
this clause.

    (g)  Ceiling prices.  Redetermined price(s) will not exceed 
a 10 percent increase over the preceding ordering period price(s).
There will be no limitation on price decreases.

    (h)  Price reductions.  Notwithstanding the provisions of this 
clause, DSCR will accept contractor-offered price reductions 
throughout the life of the contract in accordance with Clause 
52.217-9G16, Customer Value Contracts (CVC).