Have an established catalog or market price. Related to the prices of nearly equivalent standard supplies that Is for semistandard supplies for which the prices can be reasonably Upon approval by the chief of the contracting office.īased on established prices-semistandard supplies.Ĭontracting officer shall, when contracting by negotiation, insertĮconomic Price Adjustment-Semistandard Supplies, or an agency-prescribedĬlause as authorized in paragraph (b)(2) of this section, in solicitations ![]() May modify the clause by increasing the 10 percent limit on aggregate (This does not apply to prompt payment or cash discounts.) In the contract file both the catalog or list price and the discount. Unit price reflects a net price after applying a trade discountįrom a catalog or list price, the contracting officer shall document The contracting officer may use an agency-prescribed clause instead Officer has made the determination specified in 16.203-3.Ĭonditions in paragraph (a)(1) of this subsection apply and theĬontracting officer determines that the use of the clause at 52.216-2 is inappropriate, ![]() Is for standard supplies that have an established catalog or market When contracting by negotiation, insert the clause at 52.216-2, Economic PriceĪdjustment-Standard Supplies, or an agency-prescribed clause asĪuthorized in paragraph (a)(2) of this subsection, in solicitationsĪnd contracts when all of the following conditions apply: In contracts that do not require submission of certified cost or pricing data, the contracting officer shall obtain adequate data to establish the base level from which adjustment will be made and may require verification of data submitted. In establishing the base level from which adjustment will be made, the contracting officer shall ensure that contingency allowances are not duplicated by inclusion in both the base price and the adjustment requested by the contractor under economic price adjustment clause. For use of economic price adjustment in sealed bid contracts, see 14.408-4. Price adjustments based on labor and material costs should be limited to contingencies beyond the contractor’s control. Price adjustments based on established prices should normally be restricted to industry-wide contingencies. 16.203-2 Application.Ī fixed-price contract with economic price adjustment may be used when (i) there is serious doubt concerning the stability of market or labor conditions that will exist during an extended period of contract performance, and (ii) contingencies that would otherwise be included in the contract price can be identified and covered separately in the contract. The contract type remains fixed-price with economic price adjustment when used with these incentives. The contracting officer may use a fixed-price contract with economic price adjustment in conjunction with an award-fee incentive (see 16.404) and performance or delivery incentives (see 16.402-2 and 16.402-3) when the award fee or incentive is based solely on factors other than cost. These price adjustments are based on increases or decreases in labor or material cost standards or indexes that are specifically identified in the contract. (3) Adjustments based on cost indexes of labor or material. These price adjustments are based on increases or decreases in specified costs of labor or material that the contractor actually experiences during contract performance. (2) Adjustments based on actual costs of labor or material. These price adjustments are based on increases or decreases from an agreed-upon level in published or otherwise established prices of specific items or the contract end items. (1) Adjustments based on established prices. Economic price adjustments are of three general types: ![]() A fixed-price contract with economic price adjustment provides for upward and downward revision of the stated contract price upon the occurrence of specified contingencies.
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