(b)(90) Contracts and orders to FPI shall be on an f.o.b. origin basis unless otherwise specified.
(c)(90) Ceiling priced awards.
(i) The clause at 52.208-9000, Price Adjustment on Federal Prison Industries, Inc. (FPI) Contract/Order, may be utilized only if (i) the contract/order will be issued to FPI at a fair and reasonable price that does not exceed the estimated current market price; (ii) the contracting officer completes action specified in 8.602(a)(91)(vii); and (iii) the chief of the contracting office determines in writing that ordering the urgently needed Schedule item cannot be further delayed and approves such award.
(ii) After issuing a contract/order containing the clause at 52.208-9000, the contracting officer shall brief the chief of the contracting office or designee of efforts to reach an agreement as to the current market price reduction applicable thereto. Agreements reached shall be confirmed by a revision to the contract/order stating the applicable price and removing the clause at 52.208-9000.
(iii) Efforts to obtain agreement may continue up to the time of inspection and acceptance of the first delivery. If agreement has not been reached by that time, the case shall be submitted by the chief of the contracting office (not delegable, except that the Executive Director for Procurement at DSCR may further delegate this authority to the Deputy Executive Director for Procurement and the Chief, Base Support Division without power of redelegation) to HQ DLA, ATTN: J-73 as unresolvable and shall contain a detailed explanation of the factors used in determining the current market price and/or reasonable price which were not acceptable to the FPI.
