As prescribed in 16.203-4(92)(a)(1)(90)(i), insert the following clause:
ECONOMIC PRICE ADJUSTMENT - DOD ELECTRONIC MALL (EMALL) (JUL 2006) - DLAD
(a) The Contractor warrants that the unit prices offered are and shall remain -
(1) the established prices for the same commercial items sold in substantial quantities to the general public as reflected in published catalogs and/or price lists; and
(2) as low or lower than prices being offered to its most preferred customers for like quantities of the same items under comparable terms and conditions.
(b) Price Changes.
(1) Decreases: The Contractor may decrease prices without limitation and without prior notification to the Contracting Officer.
(2) Increases: The Contractor shall notify the Contracting Officer in writing 30 days prior to the effective date of any price increase.
(i) The Contractor is limited to annual price increases not exceeding 5% cumulatively per item.
(ii) Any increase exceeding 5% in an annual period, whether individual or cumulative, is subject to the Contracting Officer’s approval and requires modification of the contract. The Contractor shall provide supporting data, including verifiable catalog or published list prices, corresponding increases in cost, discount structure, or any other information deemed appropriate by the Contracting Officer. Increases in commercial catalogs or published price lists do not automatically authorize corresponding increases in contract prices.
(iii) Price increases shall not apply to orders placed prior to approval of the price increase.
(iv) Within 30 days after receipt of the Contractor’s written notification, the Contracting Officer may cancel, without liability to either party, any undelivered portion of the contract items affected by the increase.
(c) Any dispute under this clause shall be resolved in accordance with the Disputes Clause of this contract.
(End of clause)
