Pursuant to 16.203-4(c)(90), insert a clause that is substantially the same as the following clause:
IMPLEMENTATION OF FAR 52.216-4 ECONOMIC PRICE ADJUSTMENT - LABOR AND MATERIAL (JAN 2002) - DLAD
(a) Economic price adjustment (EPA) pursuant to the clause of this contract entitled ECONOMIC PRICE ADJUSTMENT-LABOR AND MATERIAL (FAR 52.216-4), shall be determined as implemented herein.
(b) EPA is limited to changes in the contractor’s cost relative to the labor category or item of material and the related Contract Line Item Number (CLIN)) listed below. The offeror shall list its current cost per unit of labor and/or materials for such item, shall identify the name, source and date of the document containing such cost, and shall attach to its offer, a copy of the pages from such document identifying the item and its cost:
_________________________________(Note1)_________________________________________________________________________________________________________________________________________________________________________________________________________________
(c) EPA for the specified cost element relative to each Contract Line Item Number (CLIN) shall be calculated as follows:
_________________________________(Note2)____________________________________________ __________________________________________________
___________________________________________________________________________________
(d) The Contractor shall include with the final invoice, a statement that the Contractor has not experienced a decrease in any labor rate and/or material unit price for the item listed herein, or a statement that it has given notice of all such decreases in compliance with the EPA clause.
(End of clause)
Note 1: For the item to be subject to price adjustment, the contracting officer shall list the CLIN, the specific labor category or item of raw material, purchased part, etc. to be subject to EPA, provide for offeror fill-in of its current cost and unit of measure for such category/item, and for the name, source and date of the document containing such cost.
Note 2: The contracting officer shall identify the quantity and cost (or the dollar percentage) of the item listed in paragraph (b) that is included in CLIN price, along with an explicit description of how an increase, and how a decrease, in such item cost shall be used in calculating any EPA to the CLIN unit price. A sample calculation may be included if deemed beneficial.
