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DSCR

DSCR I83: ECONOMIC PRICE ADJUSTMENT (EPA) - DEPARTMENT OF LABOR INDEX

I83   52.216-9G06   ECONOMIC PRICE ADJUSTMENT   DSCR (JAN 1997) 
AND                 -DEPARTMENT OF LABOR PRICE 
I16F35              INDEX


    (a)  Definitions:  As used in this provision:

         (1)  The economic indicator for the purpose of 
price adjustment shall be the Producer Price Index checked 
below in the monthly report entitled "Producer Prices and 
Price Indexes" published by the Bureau of Labor statistics, 
U.S. Department of Labor.  The applicable Producer Price Index 
under Table 6 is:

   [  ]  Chemical and Allied Products  -  Code No. 06
   [  ]  Metals and Metals Products    -  Code No. 10
   [  ]  Machinery and Equipment       -  Code No. 11
   [  ]  Rubber and Plastic Products   -  Code No. 07
   [  ]  Other Commodity:              -  Code No. _____  

         (2)  The base price index for the purpose of price 
adjustment shall be the index checked in (a)(1) above for the 
month of the contract date;

         (3)  The term "Contract Date" means:

              (i)  The date of bid opening in the case of sealed 
bid procurements;

             (ii)  The date of award in the case of negotiated 
contracts, except that with respect to any set-aside portion of 
this acquisition, the words mean the date of bid opening for the 
non-set-aside portion, if sealed bid, or the date of award for 
the non-set-aside portion, if negotiated;

            (iii)  The effective date of contract modifications 
adding additional CLINS to the contract, except that if additional 
CLINS are added pursuant to the provisions entitled, "Option for 
Increased Quantity," the dates specified in (i) above for sealed 
bid contracts and in (ii) above for negotiated contracts shall be 
applicable.

         (4)  The words "Contract Delivery Date" refer only to the 
delivery schedule as originally stated in the contract as of date 
issued plus any extension attributable solely to reasons determined 
by the Contracting Officer to be excusable within the meaning of the 
"Default" Clause.  The words "Contract Delivery Date" do not include 
any extension of the delivery schedule, however accomplished, except 
for such excusable causes.

         (5)  The Adjusting Price Index means:

              (i)  For price increases, the index checked in (a)(1) 
for the month of the contract delivery date or the month in which 
the supplies are delivered, whichever is earlier, and

             (ii)  For price decreases, the index checked in 
(a)(1) for the month in which the supplies are delivered.

    (b)  The original unit prices (as of contract date) for 
supplies (excluding data CLINS) shall be subject to adjustment 
upward or downward by the percent of difference (+ or -) 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 provisions of the contract, the 
decreased unit prices shall be used for adjustment purposes in 
lieu of the original unit prices.

    (c)  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 thereof is received 
by the Contracting Officer within 180 days after the date of final 
shipment of supplies under the contract.

    (d)  The contractor is required to notify the Contracting Officer 
of 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 180 days after the 
date of final shipment of supplies under the contract.

    (e)  Price adjustments pursuant to the 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.  No adjustment 
will be made under this clause unless the total change in the 
contract amount is $250.00 or more.

    (f)  Should the Bureau of Labor Statistics, U.S. Department 
of Labor:

         (1) Discontinue an index identified herein,  

         (2) Fail to publish an index identified herein for any month,  

         (3) Change the method of computation of an index identified 
herein during the effective period of the contract,  

         (4) Revise any previously published index identified herein, 

the parties shall agree upon an appropriate substitute index or 
adjustment.

    (g)  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.

    (h)  Failure of the parties to agree on substitute index or 
adjustment shall be a dispute concerning a question of the fact 
within the meaning of the "Disputes" clause of the contract.