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DSCR

DSCR I80: ECONOMIC PRICE ADJUSTMENT (EPA) -SILVER

I80   52.216-9G03   ECONOMIC PRICE ADJUSTMENT - SILVER  DSCR (JAN 1997)
AND
I16F32


    (a)  To the extent that contingent cost increases are provided 
for by this Economic Price Adjustment Clause, the offeror warrants 
that the prices in this offer do not include any amount to protect 
against such contingent cost increases.  The contractor also 
warrants that the amount of silver contained in each unit offered 
is the amount stated in the contract schedule.

    (b)  As used throughout this provision:

         (1)  The term "Unit Price" means the unit price offered, 
as set out in the contract schedule.

         (2)  The term "Reference Quotation" means the average of the 
Englehard Industrial Bullion Quotation and the Handy and Harman Base 
Price Quotation for silver on the New York Market over the fifteen 
working days immediately preceding bid opening, or the date of award 
for negotiated contracts, as reported in the Wall Street Journal.
If the quotation for silver on a particular day is set out as a 
range of prices, the average of these prices shall be considered 
the price for that day.

         (3)  The term "Adjusted Quotation" means the average of 
the Englehard Industrial Bullion Quotation and the Handy and Harman 
Base Price Quotation of silver on the New York Market, as reported 
in the Wall Street Journal, for the fifteen working days prior to a 
delivery date.

         (4)  The term "Weight Factor" means the amount of silver 
contained in each unit delivered.  For purposes of this definition, 
the amount of silver per unit will be deemed to be the number of 
troy ounces stated in the contract schedule.

         (5)  The term "Delivery Date" means the date on 
which a delivery of contract items is shipped from the contractor's 
plant.

    (c)  The prices payable under the contract shall be adjusted, 
upward or downward, by contract modifications issued by the Contracting 
Officer.  Modifications will be issued upon presentation of a written 
claim for an increased adjustment or written notification of a 
downward adjustment by the contractor when the amount of the net 
change in the contract price is at least $1,000.  Such claims/
notifications shall be made no later than sixty days after the 
final delivery date.  Contractors are required to notify the 
Contracting Officer of any price decreases.  If the contractor 
should fail to notify the Contracting Officer of a price decrease, 
price decreases may still be effected by the Contracting Officer 
provided written notification of the decrease is provided to 
the contractor within 60 days after the date of final shipment of 
supplies under the contract.  Contractor claims for a price 
increase that are submitted more than sixty days after the final 
delivery date will not be honored.  There will be no adjustment 
for increases which occur after the required delivery date.

    (d)  The prices payable for a particular delivery under this 
contract will be the sum of the unit price for the items supplied 
and the product of the difference between the reference quotation 
and the adjusted quotation and the weight factor, multiplied by 
the number of units delivered.

    (e)  Notwithstanding the foregoing, the aggregate of the 
increase(s) in any unit price adjusted under this clause shall not 
exceed      % (percent) of the contract price for such unit.  There 
shall be no limit on the downward economic price adjustments made 
pursuant to this clause.

    (f)  Pricing actions pursuant to the Changes Clause or other 
provisions of the contract will be priced as though there were no 
provisions for economic price adjustment.  In the event the Wall 
Street Journal discontinues or alters substantially the index cited 
herein, the parties shall mutually agree upon an appropriate 
substitute for determining the price adjustment described herein.

    (g)  Any dispute arising under this clause shall be determined 
in accordance with and subject to the Disputes Clause of the 
contract.