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(90) When the contracting officer determines that no existing EPA clause (including a FAR clause used in conjunction with the corresponding FAR EPA “Implementation” DLAD clause (see (a)(1)(90), (b)(1)(90) and (c)(1)(90) below) is appropriate, the contracting officer may develop an alternate to an existing EPA clause, or a new clause, in accordance with 16.203-1(a)(90) or (c)(90)and will submit it for approval in accordance with 1.301-91. Established prices and cost indexes need not reflect changes in the costs or established prices of a specific contractor. The established price or cost index may be derived from sales prices in the marketplace, quotes, or assessments as reported or made available in a consistent manner in a publication, electronic database, or other form, by an independent trade association, Governmental body, or other third party independent of the contractor. More than one established price or cost index may be combined in a formula for economic price adjustment purposes in the absence of an appropriate single price or cost index upon approval pursuant to 16.203-3(91). (DAR Tracking Number 95-D0003, FARS DEV 96-10).

(91) Adjustments based on established market prices or indexes (see also (d.) below).

(i) The contracting officer shall determine the most appropriate international, national, regional, or local area market. The EPA clause included in the solicitation shall identify the index or established market price, the document containing such index or price, and its effective date or period.

(ii) If the contracting officer is unable to identify an established market price or index that satisfactorily reflects economic fluctuations, then the EPA provision included in the solicitation may provide for offeror fill-in to recommend the most appropriate established market price or index (if none, the most appropriate established catalog price), along with the document containing the established price or index and the effective date/period of the established price or index (and, for established catalog price EPA clauses, the identification and amount of any applicable extras, discounts, or rebates used in calculating the contract price). The contracting officer shall select the most appropriate established market price or index identified (if none, the most appropriate established catalog price). The contracting officer may amend the request for proposal (RFP) to include this selection.

(iii) In addition, when preparing a new, locally developed EPA clause or a revision to an existing clause involving using an established or published market price clause, include the provision at (d)(iv)(90), after substituting the phrase “market price” indicator for the five occurrences of the word “index”.

(iv) The clause at 52.216-9003 may be included in solicitations and resulting contracts for items containing specialty metals, when there is potential for unpredictable increases or decreases in the cost of the specialty metal, and the changes can be tracked by a published market price indicator (e.g. London Metals Exchange, Platts). Cost or price indices that are subject to recalculation after initial publication (to take into account late survey reports and corrections by respondents e.g. PPI) shall not be used with this clause. Clause requires contractor submission of information adequate to support derivation of the dollar value of specialty metal(s) in the unit price.

(92) Adjustments based on established catalog prices. An established catalog price-type EPA clause (FAR 52.216-2 or -3, DFARS 252.216-7000 or -7001) may be included in solicitations and resulting contracts for an item previously bought without such EPA clause only after the contracting officer determines that neither an index-type or an established market priced EPA is suitable (i.e., the requirements of FAR 16.203-4(d) and DFARS 216.203-4(d) are not met or there is no suitable index or established market price describing the supplies with specificity) and documents in the acquisition plan the results of actions taken in reaching this determination.

(a) Adjustments based on established prices-standard supplies.

(1)(90) The clause at 52.216-9000 (or substantially the same clause) may be used with FAR clause 52.216-2.

(91) Fresh Fruits and Vegetables under the DSCP Subsistence Supply Chain is authorized to use a FAR Deviation for Long Term Contracts. The Deviation is provided at FAR 52.216 52.216-9039

(i) The clause at 52.216-9011, Economic Price Adjustment - DoD Electronic Mall (EMALL) may be included in long-term contracts to be loaded into the DoD Electronic Mall (EMALL).

(b) Adjustments based on established prices-semistandard supplies.

(1)(90) The clause at 52.216-9001 (or substantially the same clause) may be used with FAR clause 52.216-3.

(c) Adjustments based on actual cost of labor or material.

(93) An actual cost type EPA clause (FAR 52.216-4 or a locally-developed clause) may be included in solicitations and resulting contracts for an item previously bought without such an EPA clause only after the contracting officer determines that no other type of EPA clause is appropriate and documents in the acquisition plan the results of actions taken in reaching this determination. A provision shall also be included in the solicitation and any resulting contracts that-

(i) Identifies the specific direct cost factor and dollar amount needed to establish the baseline from which adjustments will be made, regardless of whether cost or pricing data was submitted;

(ii) Incorporates by reference, the cost principles and procedures in FAR Subpart 31.2 for use as the basis for pricing the baseline and any adjustment under the EPA clause;

(iii) Identifies any appropriate markup factors/amounts; and

(iv) Provides the methodology for price adjustment calculations.

(1)(90) The clause at 52.216-9002 (or substantially the same clause) may be used with FAR clause 52.216-4.

(3)(90) When the FAR “Implementation” DLAD clause is also used (along with the note specified at 15.204-2(b)(91)), the contracting officer shall include the required information in such clause vice the contract Schedule.

(4)(iii)(90) When the FAR “Implementation” DLAD clause is also used (along with the note specified at 15.204-2(b)(91)), the contracting officer shall include the required information in such clause vice the contract Schedule.

(2) The clause at 52.216-9012 may be included in solicitations and resulting contracts for Unitized Group Rations - A (UGR-A) when the requirements of FAR 16.203-2 are met and the determination required by FAR 16.203-3 is made. The clause is based on cost of materials (total components price defined below). There is no adjustment for the distribution price (defined below) for these rations. If the Contractor’s applicable total components price of a ration component(s) changes (i.e. increase or decrease) after the contract date, the corresponding unit price may be increased, or shall be decreased, by the same amount (subject to upward ceiling discussed below). Clause requires contractor submission of supporting data adequate to support any requested price change.

(d) Adjustments based on cost indexes of labor or material. An index clause may be included in solicitations and resulting contracts only if the contracting officer documents in the acquisition plan, rationale indicating that the acquisition satisfies the requirements of FAR 16.203-4(d) and DFARS 216.203-4(d). The contracting officer shall select the most appropriate index published by the Bureau of Labor Statistics (BLS). Another index may be used provided the contracting officer determines that no BLS index is suitable and documents in the acquisition plan the specific BLS indexes considered, why they were unsuitable, and rationale demonstrating the suitablility of the index selected.

(d)(iv)(90) "In the event-

(i) Any applicable index is discontinued or its method of derivation is altered substantially; or

(ii) The contracting officer determines that the index consistently and substantially fails to reflect market conditions-

the parties shall agree upon an appropriate substitute index for determining price adjustments hereunder. The contract shall be modified to reflect such substitute index, effective on the date the index specified in the contract is no longer published or began to consistently and substantially fail to reflect market conditions."

(d)(v)(90) When planning to use an index-type clause which provides for price adjustment, whenever the actual index for a period differs from the projected index for that period sufficiently to trigger a price adjustment, the contracting officer shall ensure that the projected index for each period to be included in the clause at least equals the projected indexes used in pricing the same cost element under the contract.

(a) Adjustment based on established prices - standard supplies (a)(2) (a)(2)(90)

Use 52.216-9040, Economic Price Adjustment - Established Catalog Price Two Upward Adjustments Per Year Open Season E-CAT Solicitation, in Medical FAR Part 12 solicitations and contracts for the Equipment ECAT/CVC Program where offered prices are based upon established catalog/list prices, the Contracting Officer determines an EPA is appropriate, the adjustment scenario below is suitable for the instant acquisition, and the resulting contract will be placed on the Medical Electronic Catalog (ECAT) web based ordering system.

Upward adjustments are based on increases in List Prices and may be requested by the contractor twice each contract year. Downward adjustments are mandated whenever the Contractor’s List Prices decrease and/or whenever the Contractor has a Federal Supply Schedule (FSS) for the same item and that price is reduced to one that is lower than the current unit price on Medical's contract.

(For Dental, Optical and Laboratory Integrated Delivery System (LIDS) buys use 52.216-9047, ECONOMIC PRICE ADJUSTMENT - ESTABLISHED CATALOG PRICE ONE UPWARD ADJUSTMENT PER OPTION YEAR E-CAT SOLICITATION).

This clause may be appropriate for other Medical ECAT acquisitions. Please consult with the Pricing & Strategy Division (DSCP-BPA) prior to use.

(a)(2)(91)

Use 52.216-9041, Economic Price Adjustment - Federal Supply Schedule Prices - Open Season E-CAT Solicitation, in Medical FAR Part 12 Solicitations and contracts for the Equipment ECAT/CVC Program, where adjustments will be based upon price changes in the contractor's Federal Supply Schedule (FSS) contract for the same items, the Contracting Officer determines an EPA is appropriate, the adjustment scenario below is suitable for the instant acquisition, and the resulting contract will be placed on the Medical Electronic Catalog (ECAT) web based ordering system.

Upward adjustments may be requested by the contractor whenever the FSS price for an item increases. Decreases are mandated whenever FSS prices decrease.

(For Dental, Optical, and Laboratory Integrated Delivery System (LIDS) buys use ECONOMIC PRICE ADJUSTMENT - OTHER FEDERAL AGENCY CONTRACTS (ONE UPWARD ADJUSTMENT PER OPTION YEAR) E-CAT).

This clause may be appropriate for other Medical ECAT acquisitions. Please consult with the Pricing & Strategy Division (DSCP-BPA) prior to use.

(a)(2)(92)

Use 52.216-9043, Economic Price Adjustment - Federal Supply Schedule Prices, in Medical FAR Part 12 solicitations and contracts where adjustments will be based upon price changes in the contractor's Federal Supply Schedule (FSS) contract for the same items, the Contracting Officer determines an EPA is appropriate, the adjustment scenario below is suitable for the instant contract, the resulting contract will not be placed on the Medical Electronic Catalog (ECAT) web based ordering system, and the concurrence of the Pricing & Strategy Division (DSCP-BPA)is received prior to using the clause..

Upward adjustments may be requested by the contractor whenever the FSS price for an item increases. Decreases are mandated whenever FSS prices decrease.

(a)(2)(93)

Use 52.216-9044, Economic Price Adjustment - Established Catalog Price - Multiple Adjustments Authorized per Clause Terms - non-ECAT, in Medical FAR Part 12 solicitations and contracts where offered prices are based upon established catalog/list prices, the Contracting Officer determines an EPA is appropriate, the adjustment scenario below is suitable for the instant acquisition, the resulting contract will not be placed on the Medical Electronic Catalog (ECAT) web based ordering system, and the concurrence of the Pricing & Strategy Division (DSCP-BPA)is received prior to using the clause.

Upward adjustments may be requested by the contractor whenever the List Price for an item increases. Downward adjustments are mandated whenever the Contractor's List Prices decrease and/or whenever the Contractor has a Federal Supply Schedule (FSS) for the same item and that price is reduced to one that is lower than the current unit price on Medical's contract.

(a)(2)(94)

Use 52.216-9045, Economic Price Adjustment - Other Federal Agency Contracts - E-CAT- One Upward Adjustment Per Option Period, in Medical FAR Part 12 solicitations and contracts for the Dental, Optical, and Laboratory Integrated Delivery System (LIDS)ECAT/CVC Program, where adjustments will be based upon price changes occurring on the Contractor's Other Federal Agency's (OFA) contract for the same items, the Contracting Officer determines an EPA is appropriate, the adjustment scenario below is suitable for the instant acquisition, and the resulting contract will be placed on the Medical Electronic Catalog (ECAT) web based ordering system.

OFA contracts include Federal Supply Schedules, Department of Veterans Affairs National Acquisition Contracts, and GSA Schedule Contracts. Upward adjustments are based on OFA price increases and may be requested by the contractor once annually to cover each option year. No increases are authorized in the base year. Downward adjustments are mandated whenever OFA prices decrease. Prior to award, the Contracting Officer and the offeror shall reach agreement on the OFA contract to be used as the benchmark for adjusting the DSCP contract.

(For Equipment ECAT Program buys use 52.216-9041, ECONOMIC PRICE ADJUSTMENT - FEDERAL SUPPLY SCHEDULE PRICES - OPEN SEASON E-CAT SOLICITATION).

This clause may be appropriate for other Medical ECAT acquisitions. Please consult with the Pricing & Strategy Division (DSCP-BPA) prior to use.

(a)(2)(95)

Use 52.216-9046, Economic Price Adjustment - Other Federal Agency Contracts - E-CAT, in Medical FAR Part 12 solicitations and contracts (including CVC type buys) where adjustments will be based upon price changes occurring on the Contractor's Other Federal Agency's (OFA) contract for the same items, the Contracting Officer determines an EPA is appropriate, the adjustment scenario below is suitable for the instant acquisition, the resulting contract is to be placed on the Medical Electronic Catalog (ECAT) web based ordering system, and the concurrence of the Pricing & Strategy Division (DSCP-BPA)is received prior to using the clause.

OFA contracts include Federal Supply Schedules (FSS), Department of Veterans Affairs National Acquisition Contracts, and GSA Schedule Contracts. Upward adjustments may be requested by the contractor whenever the OFA price increases. Downward adjustments are mandated whenever OFA prices decrease. Prior to award, the Contracting Officer and the offeror shall reach agreement on the OFA contract to be used as the benchmark for adjusting the DSCP contract.

(For Dental, Optical, and Laboratory Integrated Delivery System (LIDS) buys use ECONOMIC PRICE ADJUSTMENT - OTHER FEDERAL AGENCY CONTRACTS (ONE UPWARD ADJUSTMENT PER OPTION YEAR) E-CAT. For Equipment ECAT Program buys use 52.216-9041, ECONOMIC PRICE ADJUSTMENT - FEDERAL SUPPLY SCHEDULE PRICES - OPEN SEASON E-CAT SOLICITATION).

(a)(2)(96)

Use 52.216-9047, Economic Price Adjustment - Established Catalog Price One Upward Adjustment Per Option Year E-Cat Solicitation, in Medical FAR Part 12 Solicitations and contracts for the Dental, Optical, and Laboratory Integrated Delivery System (LIDS) ECAT/CVC Program where offered prices are based upon established catalog/list prices, the Contracting Officer determines an EPA is appropriate, the adjustment scenario below is suitable for the instant acquisition, and the resulting contract will be placed on the Medical Electronic Catalog (ECAT) web based ordering system.

Upward adjustments are based on increases in List Prices and may be requested by the contractor once annually to cover each option year. No increases are authorized for the base year. Downward adjustments are mandated whenever the Contractor's List Prices decrease and/or whenever the contractor has a contract with some Other Federal Agency (OFA) for the same item and that price is reduced to one that is lower than the current unit price on Medical’s contract. OFA contracts include Federal Supply Schedules, Department of Veterans Affairs National Contracts, and GSA Schedule contracts.

(For Equipment ECAT Program buys use 52.216-9040, ECONOMIC PRICE ADJUSTMENT - ESTABLISHED CATALOG PRICE TWO UPWARD ADJUSTMENTS PER YEAR OPEN SEASON E-CAT SOLICITATION).

This clause may be appropriate for other Medical ECAT acquisitions. Please consult with the Pricing & Strategy Division (DSCP-BPA) prior to use.

(a)(2)(97)

Use 52.216-9048, Economic Price Adjustment -Established Catalog Price - Multiple Adjustments Authorized per Clause Terms - E-CAT Solicitation, in Medical Far Part 12 solicitations and contracts where offered prices are based upon established catalog/list prices, the Contracting Officer determines an EPA is appropriate, the adjustment scenario below is suitable for the instant acquisition, the resulting contract will be placed on the Medical Electronic Catalog (E-CAT) web based ordering system, and the concurrence of the Pricing & Strategy Division (DSCP-BPA)is received prior to using the clause.

Upward adjustments may be requested by the Contractor whenever the List Price for an item increases. Downward adjustments are mandated whenever the Contractor's List Prices decrease and/or whenever the Contractor has a Federal Supply Schedule (FSS) for the same item and that price is reduced to one that is lower than the current unit price on Medical's contract.

(For Dental, Optical and Laboratory Integrated Delivery System (LIDS) buys use 52.216-9047, ECONOMIC PRICE ADJUSTMENT - ESTABLISHED CATALOG PRICE ONE UPWARD ADJUSTMENT PER OPTION YEAR E-CAT SOLICITATION. For Equipment ECAT Program buys use 52.216-9040, ECONOMIC PRICE ADJUSTMENT - ESTABLISHED CATALOG PRICE TWO UPWARD ADJUSTMENTS PER YEAR OPEN SEASON E-CAT SOLICITATION).

(a)(2)(98) ECONOMIC PRICE ADJUSTMENT -

For Energy Supply Chain only: Insert the Clause 52.216-9069 ECONOMIC PRICE ADJUSTMENT - PUBLISHED MARKET PRICE - DOMESTIC BULK in domestic bulk fuel solicitations/contracts when a price adjustment is based on an independent published price listing. Requires buyer fill-in of applicable ceiling at subparagraph (c)(5), as well as completion of the paragraph (g) with a description of the specific market prices to be used, along with any explanatory notes (notes 2 and 3). NOTE: The Contracting Officer shall insert the appropriate ceiling percentage in paragraph (c)(5) as determined by the Chief of the Contracting Office or designee. Explicit approval must be obtained for any ceiling exceeding ten (10) percent in accordance with DLAD 16.203-3 (94). The buyer shall coordinate with the Market Research Section (DESC-RN) before completion of fill in the blank information sections of the clause such as base market, and publication dates, to ensure the accuracy of the information and the correct selection of the market price.

(a)(2)(99) ECONOMIC PRICE ADJUSTMENT - PUBLISHED MARKET PRICE - ELECTRICITY - HEAT RATE

Insert the Clause 52.216-9068 ECONOMIC PRICE ADJUSTMENT - PUBLISHED MARKET PRICE - ELECTRICITY - HEAT RATE (APR 2010) in Energy Supply Chain solicitation/contracts for electricity solicitations/contracts when soliciting under the Heat Rate Block and Index method. This clause may be used in markets where natural gas represents a substantial power generation fuel source and the customer requests that DESC purchase electricity using Heat Rate Pricing. Requires buyer fill-ins at paragraph (b), subparagraphs (i), (ii), (ii)(6), (ii)(7), (ii)(8, (ii)(9), (ii)(10), (ii)(11), and paragraphs (c) and (f). NOTE: The Contracting Officer shall insert the appropriate ceiling percentage in paragraph (f) as determined by the Chief of the Contracting Office or designee. Explicit approval must be obtained for any ceiling exceeding ten (10) percent in accordance with DLAD 16.203-3 (94). The index to be used must be a natural gas futures price from the New York Mercantile Exchange (NYMEX). If any other index is to be used the buyer shall coordinate with the Market Research Section (DESC-RN) before completion of fill in the blank information sections of the clause such as base reference price, and publication dates, to ensure the accuracy of the information and the correct selection of the market (reference price).

(a)(2)(100) Economic Price Adjustment - Market Price - Posts, Camps, & Stations - KOREA/GUAM/JAPAN

Insert the Clause 52.216-9071 ECONOMIC PRICE ADJUSTMENT - MARKET PRICE - POSTS, CAMPS, & STATIONS - KOREA/GUAM/JAPAN (MAY 2010) in Energy Supply Chain solicitations/contracts for Posts, Camps, and Stations (PC&S) for the following countries: Korea, Guam or Japan. The Contracting Officer is required to insert a header in paragraph (c) for Korea and Guam. When using this clause for Japan, the Contracting Officer is required to insert a header as well as other language covering delivery and notification (See Note 1 to the clause). The Contracting Officer shall insert the appropriate ceiling percentage in paragraph (c)(5) as determined by the Chief of the Contracting Office or designee (reference note 2 of the clause). Explicit approval must be obtained for any ceiling exceeding ten (10) percent in accordance with DLAD 16.203-3 (94). The Contracting Officer shall coordinate with the Market Research Section (DESC-RN) before completion of fill in the blank information sections of the clause such as base market, and publication dates, to ensure the accuracy of the information and the correct selection of the market price. Refer to Note 3 of the clause in reference to coordination with the Market Research Section

(a)(2)(104)

Insert the Clause 52.216-9074 ECONOMIC PRICE ADJUSTMENT - MARKET PRICE AND ACTUAL TRANSPORTATION COST - NATURAL GAS - ALASKA (JUN 2010) in Energy Supply Chain solicitations and contracts for direct supply natural gas in Alaska. The Contracting Officer shall insert the appropriate ceiling percentage in paragraph (c)(2) as determined by the Chief of the Contracting Office or designee. Explicit approval must be obtained for any ceiling exceeding ten (10) percent in accordance with DLAD 16.203-3 (94). The Contracting Officer must complete the applicable ceiling in Note 1 of paragraph (c)(2)

(d) Adjustments based on cost indexes of labor or material
(d)(2) (d)(2)(90)

Use 52.216-9042, Economic Price Adjustment (EPA) - Department of Labor Bureau of Labor Statistics - Consumer Price Index, in Medical FAR Part 12 solicitations and contracts under the DoD/VA Shared Procurement Program when the Contracting officer determines that an EPA is appropriate, the adjustment scenario below, which is based on changes in the Consumer Price Index (CPI), is suitable for the instant acquisition and the concurrence of the C&P Medical Support Team is received prior to using the clause.

Adjustments are based upon changes in the CPI for the expenditure category "Prescription Drugs and Medical Supplies" or "Nonprescription Drugs and Medical Supplies." Upward adjustments may be requested by the Contractor once annually to cover each option year. Downward adjustments during the option years are mandated whenever the CPI goes down. An additional downward adjustment is mandated whenever the contractor has a Federal Supply Schedule (FSS) for the same item and that price is reduced to one that is lower than the current unit price on Medical's contract.

(d)(2)(91)

Use 52.216-9049, Economic Price Adjustment (EPA) of the Annual Management Fee(s) and Annual Management Cost(s) for the Option Years, in Medical solicitations for readiness items which result in Corporate Exigency Contracts or Vendor Managed Inventory Contracts.

Adjustments are based upon changes in the Producer Price Index for General Warehousing and Storage. One adjustment is authorized annually to determine the annual Management Fee(s) and Management Cost(s) for the upcoming option year. Upward adjustments may be requested by the Contractor. Downward adjustments are mandated by the clause. No adjustment is authorized for the base year.

(d)(2)(92)

Use 52.216-9050, Economic Price Adjustment (EPA) of the Annual Inventory Holding Fee and Annual Inventory Holding Cost for the Option Year, in Medical solicitations for readiness items which result in Corporate Exigency Contracts or Vendor Managed Inventory Contracts.

Adjustments are based upon changes in the Prime Rate. One adjustment is authorized annually to determine the annual Inventory Holding Fee and Inventory Holding Cost for the upcoming option year. Upward adjustments may be requested by the Contractor. Downward adjustments are mandated by the clause. No adjustment is authorized for the base year.

(d)(2)(93)

Use 52.216-9051, Economic Price Adjustment - One Adjustment Per Year - Base Year Only FCP Percentage Adjustment when the offeror will not agree to use 52.216-9052, Economic Price Adjustment - One Adjustment Per Year - Base/Option Year Only FCP Percentage Adjustment and the concurrence of the C&P Medical Support Team is received prior to using the clause.

Upward adjustments may be requested by the Contractor and are limited to one per year based upon the change in the FCP. Downward adjustments are mandated whenever the FCP decreases and whenever the contractor has a Federal Supply Schedule (FSS) for the same item and that price is reduced to one that is lower than the current unit price on Medical's contract.

FCP Adjustments for the Base year only are based upon the percentage change in the FCP. Adjustments for the Option Years cannot exceed the Federal Ceiling Price. Accordingly, use this clause if the offeror will not agree to use 52.216-9052, Economic Price Adjustment - One Adjustment Per Year - Base/Option Year Only FCP Percentage Adjustment. FCP adjustments for the base and option years of the July 2004 version are based upon the percentage change in the FCP.

(d)(2)(94)

Use 52.216-9052, Economic Price Adjustment - One Adjustment Per Year - Base/Option Year Only FCP Percentage Adjustment, in Medical FAR Part 12 solicitations and contracts for Yellow Fever Vaccine and other appropriate pharmaceutical items which have an annual Federal Ceiling Price (FCP) as required by the Veterans Healthcare Act, the Contracting Officer determines that an EPA is appropriate, adjustments based upon changes in the FCP, and in some instances decreases in the Contractor's Federal Supply Schedule (FSS) price for the same item, are suitable for the instant acquisition, and the concurrence of the C&P Medical Support Team is received prior to using the clause.

Upward adjustments may be requested by the Contractor and are limited to one per year based upon the change in the FCP. Downward adjustments are mandated whenever the FCP decreases and whenever the contractor has a Federal Supply Schedule (FSS) for the same item and that price is reduced to one that is lower than the current unit price on Medical's contract.

FCP adjustments for the Base and Option Years are based upon the percentage change in the FCP. If the offeror does not agree to base option year adjustments on the percentage change in the FCP, consider using clause 52.216-9051, Economic Price Adjustment - One Adjustment Per Year - Base Year Only FCP Percentage Adjustment.

(d)(2)(95) Economic Price Adjustment (EPA) - Actual Material Costs for Subsistence Delivered Price Business Model

Insert the clause at DLAD 52.216-9064, Economic Price Adjustment (EPA) - Actual Material Costs for Subsistence Delivered Price Business Model, in the subsistence acquisitions to protect the Contractor and the Government against unpredictable increases and decreases in actual material costs charged by the Contractor’s suppliers. Buyer fill-in required in the following paragraphs:

(b) Definitions (2) Delivered Price: Buyer shall insert day of week and time

(c) Price Adjustments (1) General, (B), (D), and (E): Buyer shall insert day of week and time

(d) UPWARD CEILING ON ECONOMIC PRICE ADJUSTMENT: Buyer shall insert the appropriate item price ceiling percentage(s) considering market volatility of each item covered by the contract.

Buyer will ensure the acquisition plan documents the need for an EPA ceiling in excess of 10%, and applicable approvals (see DLAD 16.203-3(94)).

(d) (2) (96) Economic Price Adjustment (EPA) - Actual Material Costs for Subsistence Product Price Business Model

Insert the clause at DLAD 52.216-9065, Economic Price Adjustment (EPA) Actual Material Costs for Subsistence Product Price Business Model in the solicitation and resultant contract for subsistence acquisitions that utilize the “product price business model” to protect the contractor and the Government against unpredictable increases and decreases in actual material costs charged by the Contractor’s suppliers. Buyer fill-in required in the following paragraphs:

(b ) Definition (2) Product Price: Buyer shall fill in day and week and time.

(c ) Price adjustments (1) General, B, D, and E: Buyer shall insert day of week and time.

(d) UPWARD CEILING ON ECONOMIC PRICE ADJUSTMENT: Buyer shall insert the appropriate

item price ceiling percentage(s) considering market violatility of each item covered by the contract.

Buyer will ensure that the acquisition plan documents the need for an EPA ceiling in excess of 10% and applicable approvals (see DLAD 16.203-3(94).

(90) Additional clauses.

These clauses can be used only when the requirements of FAR 16.203-2 and DLAD 16.203 are met and the determination required by FAR 16.203-3 is made, and the contracting officer determines that none of the standard FAR EPA clauses are appropriate for use in the acquisition.

(a) Price adjustment for specialty metals. The clause at 52.216-9003 may be included in solicitations and resulting contracts for items containing specialty metals, when the circumstances in FAR 16.203-4(d)(1) exist, unpredictable increases or decreases in the cost of the specialty metal are expected, and the changes can be tracked by a published market price indicator (e.g. London Metals Exchange, Platts). Cost or price indices that are subject to recalculation after initial publication (to take into account late survey reports and corrections by respondents e.g. PPI) shall not be used with this clause. Clause requires contractor submission of information adequate to support derivation of the dollar value of specialty metal(s) in the unit price.

(b) Price Adjustment for Unitized Group Rations -A. The clause at 52.216-9012 may be included in solicitations and resulting contracts for Unitized Group Rations - A (UGR-A). The clause is based on cost of materials (total components price defined in the clause). There is no adjustment for the distribution price (defined in the clause) for these rations. If the Contractor’s applicable total components price of a ration component(s) changes (i.e. increase or decrease) after the contract date, the corresponding unit price may be increased, or shall be decreased, by the same amount (subject to upward ceiling stated in the clause). Clause requires contractor submission of supporting data adequate to support any requested price change.

(c) Price Adjustment for Lead, Battery Consignment Program. The clause at 52.216-9029 ECONOMIC PRICE ADJUSTMENT (EPA) LEAD, BATTERY CONSIGNMENT PROGRAM may be included in solicitations and the resulting contracts for batteries acquired under the Battery Consignment Program, when the circumstances in FAR 16.203-4(d)(1) exist, unpredictable increases or decreases in the cost of the lead are expected, and the changes can be tracked by the London Metals Exchange standard lead pricing. When setting the “Adjustment Band” the Contracting Officer shall determine the percentage that allows the clause to be adequately responsive to fluctuations in the lead market while also minimizing the administrative burden of processing adjustments for minimal prices changes.

(d) Price Adjustment for Department of Labor Price Index. The clause at 52.216-9030 ECONOMIC PRICE ADJUSTMENT - DEPARTMENT OF LABOR PRICE INDEX may be included in negotiated solicitations and resulting contracts when

(i) soliciting an item when unpredictable increases or decreases in the cost of producing the items are expected or pricing uncertainties exist for a component or components of the end item, and the change in cost of production or component prices can be tracked via the Producers Price Index (PPI) published by the Bureau of Labor Statistics (BLS);

(ii) the circumstances in FAR 16.203-4(d)(1) exist;

(iii) the contracting officer considers the use of this clause appropriate; and

(iv) the requirements of FAR 16.203-3 and DLAD 16.203 are met.

(f) Economic Price Adjustment (EPA) - Established Market Price - Milk. The clause at 52.216-9032 Economic Price Adjustment (EPA) - Established Market Price Economic Price Adjustment (EPA) - Established Market Price - Milk may be included in solicitations and resulting contracts for Extended Shelf Life (ESL) Milk items when the following conditions apply:

1. The contracting officer has made the determination specified in FAR 16.203-3 that a fixed price contract with an economic price adjustment (EPA) is appropriate,

2. Items have an established market price,

3. When the entire or major quantity of milk will be processed outside the state of California, and

4. Price adjustments will not be made by contract modification.

(i) 52.216-9032 Economic Price Adjustment (EPA) - Established Market Price - Milk Alternate I. Use 52.216-9032 Alternate I in solicitations and contracts for Extended Shelf Life (ESL) milk when items 1, 2 and 4 apply and the entire or major quantity of milk will be processed in the state of California.

(ii) 52.216-9032 Economic Price Adjustment (EPA) - Established Market Price - Milk Alternate II. Use 52.216-9032 Alternate II in solicitations and contracts for Ultra High Temperature (UHT) milk when items 1, 2 and 3 apply and price adjustments will be made by contract modification.

(iii) 52.216-9032 Economic Price Adjustment (EPA) - Established Market Price-Milk Alternate III. Use 52.216-9032 Alternate III in solicitations and contracts for Ultra High Temperature (UHT) milk items when items 1 and 2 apply, the entire or major quantity of milk will be processed in the state of California, and price adjustments will be made by contract modification.

(g) 52.216-9033 ECONOMIC PRICE ADJUSTMENT - ESTABLISHED PRICES

This clause may be used in acquisitions when it is known that the items being acquired are commercial items for which manufacturers or suppliers have established, published prices meeting the definition of “market price” or “catalog price” in 16.203(90). Complete paragraph (c)(1) of the clause by inserting the maximum percentage of increase authorized.

(h) 52.216-9034 ECONOMIC PRICE ADJUSTMENT - PUBLISHED MARKET PRICE - SILVER

The clause at 52.216-9034 may be included in solicitations and resulting contracts for items containing silver, when unpredictable increases or decreases in the cost of silver are expected, the circumstances in FAR 16.203-4(d)(1) exist, and the changes can be tracked by the published market price indicator in the clause.

(i) 52.216-9035 ECONOMIC PRICE ADJUSTMENT - PUBLISHED MARKET PRICE - LEAD

The clause at 52.216-9035 may be included in solicitations and resulting contracts for items containing lead, when unpredictable increases or decreases in the cost of lead are expected, the circumstances in FAR 16.203-4(d)(1) exist, and the changes can be tracked by the published market price indicator in the clause.

(j) The following evaluation clauses will be used in solicitations when an economic price adjustment clause will be used.

(i) When using negotiation procedures that include an economic Price Adjustment use 52.216-9036 EVALUATION OF OFFERS - ECONOMIC PRICE ADJUSTMENT. to advise offerors how their prices will be evaluated in regard to the EPA provision.

(ii) When using sealed bidding that includes an economic price adjustment clause, use 52.216-9037 EVALUATION OF BIDS - ECONOMIC PRICE ADJUSTMENT to advise offerors how their prices will be evaluated in regard to the EPA provision.

(k) 52.216-9028 ECONOMIC PRICE ADJUSTMENT LABOR AND MATERIAL

The clause at 52.216-9028 may be used when the contractor will propose a material index for use in the economic price adjustment clause.

(l) 52.216-9058 Economic Price Adjustment (EPA) Established Market Price - Wool Cloth. Use the clause at 52.216-9058 in solicitations and contracts for wool cloth or items containing wool cloth. Paragraphs (b)(1), (b)(2) and (d) require the Government to fill-in the specific grade of Australian Wool that the EPA applies to and in paragraph (b) fill-in pounds of wool per yard. The pounds of wool per yard will be calculated by DSCP’s pricing element based on prior audits and provided to the buyer as necessary. The specific grade will normally be 22 Micron (US Grade 64’S). However, as market research or other circumstance dictates, buyer may complete with the appropriate number ranging from 54’S-70’S or Micron equivalent. In all cases, the buyer will document the file with the basis for the Grade chosen.

The clause at 52.216-9061 may be used in solicitations and resulting contracts for Table Spreads. The contracting officer may add additional components based upon customer requirements within paragraph (b) of the clause. Prior to incorporation of any additional component(s) into a solicitation or contract, the contracting officer shall provide the requested new components along with supporting documentation to the cost/price office for review and approval. DSCP will keep track of any items added and/or those that should be deleted from the clause and report to HQ DLA, ATTN: J-73 every two years for review and updating of the clause as necessary.

The clause at 52.216-9062 may be included in solicitations and the resulting contracts for Unitized Group Ration. The contracting officer may add additional components based upon customer requirements within paragraph (b) of the clause. Prior to incorporation of any additional component(s) into a solicitation or contract, the contracting officer shall provide the requested new components along with supporting documentation to the cost/price office for review and approval. DSCP will keep track of any items added and/or those that should be deleted from the clause and report to HQ DLA, ATTN: J-73 every two years for review and updating of the clause as necessary.

The clause at 52.216-9059 may be used in solicitations and resulting contracts for Meal Cold Weather/Long Range Patrol (MCW/LRP). The contracting officer may add additional components based upon customer requirements within paragraph (b) of the clause. Prior to incorporation of any additional component(s) into a solicitation or contract, the contracting officer shall provide the requested new components along with supporting documentation to the cost/price office for review and approval. DSCP will keep track of any items added and/or those that should be deleted from the clause and report to HQ DLA, ATTN: J-73 every two years for review and updating of the clause as necessary.

The clause at 52.216-9063 may be used in solicitations and resulting contracts for Tailored Operational Training Meal (TOTM). The contracting officer may add additional components based upon customer requirements within paragraph (b) of the clause. Prior to incorporation of any additional component(s) into a solicitation or contract, the contracting officer shall provide the requested new components along with supporting documentation to the cost/price office for review and approval. DSCP will keep track of any items added and/or those that should be deleted from the clause and report to HQ DLA, ATTN: J-73 every two years for review and updating of the clause as necessary.

The clause at 52.216-9060 may be included in solicitations and resulting contracts for Meal Ready to Eat (MRE) Assembly. The contracting officer may add additional components based upon customer requirements within paragraph (b) of the clause. Prior to incorporation of any additional component(s) into a solicitation or contract, the contracting officer shall provide the requested new components along with supporting documentation to the cost/price office for review and approval. DSCP will keep track of any items added and/or those that should be deleted from the clause and report to HQ DLA, ATTN: J-73 every two years for review and updating of the clause as necessary.