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DSCC

DSCC 52.216-9C41: EPA - OPTION PERIOD PRICING FOR INDEFINITE DELIVERY TYPE CONTRACT(S)

I16D41   52.216-9C41   EPA - OPTION PERIOD PRICING FOR INDEFINITE DELIVERY
TYPE CONTRACT(S)   (MAY 2005)   DSCC
Old Code:  I27
 (a) Definitions: As used in this clause,
(1) The term "contract date" means:
(i) the date of bid opening for advertised solicitations. If the
solicitation contains a set-aside portion, the "contract date" for the set-
aside portion will be the date of bid opening for the non set-aside
portion;
(ii) the date of award for negotiated solicitations. If the solicitation
contains a set-aside portion, the contract date for the set-aside portion
will be the date of award of the non set-aside portion.
(2) The term "contract year" means a period of 365 days beginning on the
contract date.
(b) The economic indicator for the purpose of price adjustment under this
clause shall be the final version (generally published 4 months after
initial publication) of the Producer Price Index (PPI) stated below in the
monthly report entitled "Producer Prices and Price Indexes" by the Bureau
of Labor Statistics, U.S. Department of Labor. The applicable PPI is:
CODE NO. ___________ COMMODITY __________
(c) The intent of this clause is to establish a revised contract unit price
at the beginning of each option period that will be valid for the entire
option period. The base index for each option period shall be the most
current published final PPI, cited in (b) above, that is available to the
contracting activity at the time of contract award/exercise of option. For
any subsequent option periods, the adjusting index (see paragraph (d)
below) that was used for the preceding year will become the base index for
the succeeding year. For example, the adjusting index used for the first
option period of the contract would become the base index for the second
option period of the contract.
(d) The adjusting index for the option period(s) shall be the most current
published final PPI stated in (b) above, that is available to the
contracting activity at the time the modification is issued extending the
contract period.
(e) When the contract period is extended, the procuring contracting officer
will compute the price adjustment to be made for each contract line item,
as provided in subparagraphs (1), (2), and (3) below. The adjusted prices
will be included in the modification issued to extend the contract period
and will be used in pricing all delivery orders issued during the extended
period of the contract. No other adjustments shall be made to the contract
prices during each contract year.
(1) The contract unit prices for supplies (excluding data or First Article
Test CLINs) shall be subject to adjustment upward or downward by the
percent of difference between the base index and the adjusting index. If
the contract unit prices are decreased pursuant to the changes clause or
other terms of the contract, the decreased unit prices shall be used for
adjustment purposes in lieu of the contract unit prices.  Any increase in
the contract unit prices after contract date will be subject to adjustment
as authorized by the modification.
(2) Price decreases under paragraph (e)(1) above are not subject to any
limitation. Price increases shall not exceed _________ percent of the
original contract unit price for each contract year.
(3) Price adjustments pursuant to this clause will be made by modification
to the contract which will show the base index, the adjusting index and the
percentage of difference of these, rounded off to the fifth decimal place,
then applied to the contract unit price.
EXAMPLE:
Assume: Base Index = 150.3
Adjusting Index = 165.1
Contract Unit Price = $8.33
Adjustment Formula: Revised price equals (adjusting index) divided by (base
index) times (contract unit price), or, based upon above,
(165.1 divided by 150.3 = 1.09847) times $8.33 = $9.15025, revised price,
rounded to $9.15 = adjusted unit price
The adjusted unit price will be rounded to the nearest cent, i.e.,
increases amounting to $.005 to $.009 shall be rounded upward to the next
cent and changes of $.001 to $.004 shall be rounded to the lower cent.
(f) 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.