252.216-7000 Economic Price Adjustment--Basic Steel,
Aluminum, Brass, Bronze, or Copper Mill Products.
252.216-7001 Economic Price Adjustment--Nonstandard Steel
Items.
252.216-7002 Reserved.
252.216-7003 Economic Price Adjustment--Wage Rates or
Material Prices Controlled by a Foreign Government.
252.216-7000 Economic Price Adjustment--Basic Steel,
Aluminum, Brass, Bronze, or Copper Mill Products.
As prescribed in
216.203-4-70(a), use the following clause:
ECONOMIC PRICE ADJUSTMENT--BASIC STEEL, ALUMINUM, BRASS, BRONZE, OR
COPPER MILL PRODUCTS (JUL 1997)
(a) Definitions. As used in this clause¾
“Established price”
means a price which is an established catalog or market price for a commercial
item sold in substantial quantities to the general public.
“Unit price” excludes any part of the price which
reflects requirements for preservation, packaging, and packing beyond standard
commercial practice.
(b) The Contractor
warrants that the unit price stated for (Identify the item) is not in
excess of the Contractor's established price in effect on the date set for
opening of bids (or the contract date if this is a negotiated contract) for
like quantities of the same item. This
price is the net price after applying any applicable standard trade discounts
offered by the Contractor from its catalog, list, or schedule price.
(c) The Contractor
shall promptly notify the Contracting Officer of the amount and effective date
of each decrease in any established price.
(1) Each corresponding contract unit price shall
be decreased by the same percentage that the established price is decreased.
(2) This decrease shall apply to items delivered
on or after the effective date of the decrease in the Contractor's established
price.
(3) This contract shall be modified accordingly.
(d) If the Contractor's
established price is increased after the date set for opening of bids (or the
contract date if this is a negotiated contract), upon the Contractor's written
request to the Contracting Officer, the corresponding contract unit price shall
be increased by the same percentage that the established price is increased,
and this contract shall be modified accordingly, provided—
(1) The aggregate of the increases in any
contract unit price under this contract shall not exceed 10 percent of the
original contract unit price;
(2) The increased contract unit price shall be
effective on the effective date of the increase in the applicable established
price if the Contractor's written request is received by the Contracting
Officer within ten days of the change.
If it is not, the effective date of the increased unit price shall be
the date of receipt of the request by the Contracting Officer; and
(3) The increased contract unit price shall not
apply to quantities scheduled for delivery before the effective date of the
increased contract unit price unless the Contractor's failure to deliver before
that date results from causes beyond the control and without the fault or
negligence of the Contractor, within the meaning of the Default clause of this
contract.
(4) The Contracting Officer shall not execute a
modification incorporating an increase in a contract unit price under this
clause until the increase is verified.
(e) Within 30 days
after receipt of the Contractor's written request, the Contracting Officer may
cancel, without liability to either party, any portion of the contract affected
by the requested increase and not delivered at the time of such cancellation,
except as follows—
(1) The Contractor may, after that time, deliver
any items that were completed or in the process of manufacture at the time of
receipt of the cancellation notice, provided the Contractor notifies the
Contracting Officer of such items within 10 days after the Contractor receives
the cancellation notice.
(2) The Government shall pay for those items at
the contract unit price increased to the extent provided by paragraph (d) of
this clause.
(3) Any standard steel supply item shall be
deemed to be in the process of manufacture when the steel for that item is in the
state of processing after the beginning of the furnace melt.
(f) Pending any
cancellation of this contract under paragraph (e) of this clause, or if there
is no cancellation, the Contractor shall continue deliveries according to the
delivery schedule of the contract. The
Contractor shall be paid for those deliveries at the contract unit price
increased to the extent provided by paragraph (d) of this clause.
(End of clause)
252.216-7001 Economic Price Adjustment--Nonstandard Steel
Items.
As prescribed in 216.203-4-70(b),
use the following clause:
economic price adjustment--nonstandard
steel items (JUL 1997)
(a) Definitions. As used in this clause—
“Base labor index” means the average of the labor
indices for the three months which consist of the month of bid opening (or
offer submission) and the months immediately preceding and following that
month.
“Base
steel index” means the Contractor's established price (see Note 6) including
all applicable extras of $________ per ____________ (see Note 1) for
_______________ (see Note 2) on the date set for bid opening (or the date of
submission of the offer).
“Current labor index”
means the average of the labor indices for the month in which delivery of
supplies is required to be made and the month preceding.
“Current steel index”
means the Contractor's established price (see Note 6) for that item, including
all applicable extras in effect ___ days (see Note 3) prior to the first day of
the month in which delivery is required.
“Established price” is—
(1) A price which is an established catalog or
market price of a commercial item sold in substantial quantities to the general
public; and
(2)
The net price after applying any applicable standard trade discounts
offered by the Contractor from its catalog, list, or schedule price. (But see Note 6.)
“Labor index” means
the average straight time hourly earnings of the Contractor's employees in the
____________ shop of the Contractor's ________________ plant (see Note 4) for
any particular month.
“Month” means
calendar month. However, if the
Contractor's accounting period does not coincide with the calendar month, then
that accounting period shall be used in lieu of “month.”
(b) Each contract unit
price shall be subject to revision, under the terms of this clause, to reflect
changes in the cost of labor and steel.
For purpose of this price revision, the proportion of the contract unit
price attributable to costs of labor not otherwise included in the price of the
steel item identified under the “base steel index” definition in paragraph (a)
shall be _____ percent, and the proportion of the contract unit price
attributable to the cost of steel shall be _____ percent. (See Note 5.)
(c)(1) Unless otherwise
specified in this contract, the labor index shall be computed by dividing the
total straight time earnings of the Contractor's employees in the shop
identified in paragraph (a) for any given month by the total number of straight
time hours worked by those employees in that month.
(2) Any
revision in a contract unit price to reflect changes in the cost of labor shall
be computed solely by reference to the “base labor index” and the “current
labor index.”
(d) Any revision in a
contract unit price to reflect changes in the cost of steel shall be computed
solely by reference to the “base steel index” and the “current steel index.”
(e)(1) Each contract
unit price shall be revised for each month in which delivery of supplies is
required to be made.
(2) The revised
contract unit price shall apply to the deliveries of those quantities required
to be made in that month regardless of when actual delivery is made.
(3) Each
revised contract unit price shall be computed by adding—
(i) The adjusted cost of labor (obtained by multiplying ____ percent of the contract unit price by a fraction, of which the numerator shall be the current labor index and the denominator shall be the base labor index);
(ii)
The adjusted cost of steel (obtained by multiplying ____ percent of the
contract unit price by a fraction, of which the numerator shall be the current
steel index and the denominator shall be the base steel index); and
(iii)
The amount equal to ____ percent of the original contract unit price
(representing that portion of the unit price which relates neither to the cost
of labor nor the cost of steel, and which is therefore not subject to revision
(see Note 5)).
(4) The
aggregate of the increases in any contract unit price under this contract shall
not exceed ten percent of the original contract unit price.
(5)
Computations shall be made to the nearest one-hundredth of one cent.
(f)(1) Pending any
revisions of the contract unit prices, the Contractor shall be paid the
contract unit price for deliveries made.
(2) Within 30
days after final delivery (or such other period as may be authorized by the
Contracting Officer), the Contractor shall furnish a statement identifying the
correctness of—
(i) The average straight time hourly earnings of
the Contractor's employees in the shop identified in paragraph (a) that are
relevant to the computations of the “base labor index” and the “current labor
index;” and
(ii)
The Contractor's established prices (see Note 6), including all
applicable extras for like quantities of the item that are relevant to the
computation of the “base steel index” and the “current steel index.”
(3) Upon
request of the Contracting Officer, the Contractor shall make available all
records used in the computation of the labor indices.
(4) Upon
receipt of the statement, the Contracting Officer will compute the revised
contract unit prices and modify the contract accordingly. No modification to this contract will be
made pursuant to this clause until the Contracting Officer has verified the
revised established price (see Note 6).
(g)(1) In the event any
item of this contract is subject to a total or partial termination for
convenience, the month in which the Contractor receives notice of the
termination, if prior to the month in which delivery is required, shall be
considered the month in which delivery of the terminated item is required for
the purposes of determining the current labor and steel indices under
paragraphs (c) and (d).
(2) For any
item which is not terminated for convenience, the month in which delivery is
required under the contract shall continue to apply for determining those
indices with respect to the quantity of the non-terminated item.
(3) If this
contract is terminated for default, any price revision shall be limited to the
quantity of the item which has been delivered by the Contractor and accepted by
the Government prior to receipt by the Contractor of the notice of termination.
(h) If the Contractor's failure to make delivery of any required quantity arises out of causes beyond the control and without the fault or negligence of the Contractor, within the meaning of the clause of this contract entitled “Default,” the quantity not delivered shall be delivered as promptly as possible after the cessation of the cause of the failure, and the delivery schedule set forth in this contract shall be amended accordingly.
NOTES:
1
Offeror insert the unit price and unit measure of the standard steel
mill item to be used in the manufacture of the contract item.
2 Offeror identify the standard steel mill item to be used in the
manufacture of the contract item.
3 Offeror insert best estimate of the number of days required for
processing the standard steel mill item in the shop identified under the “labor
index” definition.
4 Offeror identify the shop and plant in which the standard steel
mill item identified under the “base steel index” definition will be finally
fabricated or processed into the contract item.
5 Offeror insert the same percentage figures for the corresponding
blanks in paragraphs (b), (e)(3)(i), and (e)(3)(ii). In paragraph (e)(3)(iii), insert the percentage representing the
difference between the sum of the percentages inserted in paragraph (b) and 100
percent.
6 In negotiated acquisitions of nonstandard steel items, when there
is no “established price” or when it is not desirable to use this price, this
paragraph may refer to another appropriate price basis, e.g., an established
interplant price.
(End of clause)
252.216-7002 Reserved.
252.216-7003 Economic Price Adjustment--Wage Rates or Material Prices Controlled by a Foreign Government.
As prescribed in 216.203-4-70(c), use the following clause:
economic PRICE adjustment--WAGE RATES OR MATERIAL PRICES CONTROLLED
BY A FOREIGN GOVERNMENT (JUN 1997)
(a) The Contractor represents that the prices set forth in this contract¾
(1) Are based on the wage rate(s) or material price(s) established and controlled by the Government of _______________________ (Offeror insert name of host country); and
(2) Do not include contingency allowances to pay for possible increases in wage rates or material prices.
(b) If wage rates or material prices are revised by the government named in paragraph (a) of this clause, the Contracting Officer shall make an equitable adjustment in the contract price and shall modify the contract to the extent that the Contractor’s actual costs of performing this contract are increased or decreased, as a direct result of the revision, subject to the following:
(1) For increases in established wage rates or material prices, the increase in contract unit price(s) shall be effective on the same date that the government named in paragraph (a) of this clause increased the applicable wage rate(s) or material price(s), but only if the Contracting Officer receives the Contractor’s written request for contract adjustment within 10 days of the change. If the Contractor’s request is received later, the effective date shall be the date that the Contracting Officer received the Contractor’s request.
(2) For decreases in established wage rates or material prices, the decrease in contract unit price(s) shall be effective on the same date that the government named in paragraph (a) of this clause decreased the applicable wage rate(s) or material price(s). The decrease in contract unit price(s) shall apply to all items delivered on and after the effective date of the government’s rate or price decrease.
(c) No modification changing the contract unit price(s) shall be executed until the Contracting Officer has verified the applicable change in the rates or prices set by the government named in paragraph (a) of this clause. The Contractor shall make available its books and records that support a requested change in contract price.
(d) Failure to agree to any adjustment shall be a dispute under the Disputes clause of this contract.
(End of clause)