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DSCR

DSCR H6B: FILL RATE

H6B       52.216-9G18        FILL RATE          DSCR (FEB 1996)
AND
H16F30


    (a) Definitions.  As used in this Clause:

         (1)  "Fill rate" means the percentage of the total 
quantity of the items ordered which are shipped within ____ days 
of receipt of order.  For example, if ten orders of ten each are 
received and eight shipments of 10 each and one shipment of five 
each are made in response to nine of the orders, a fill rate of 85% 
has been obtained.  The fill rate achieved during each semiannual 
period will be used to set the authorized markup for the following 
period.

         (2)  "Receipt of the order" means the date on which the 
electronic transmission of the requisition/delivery order is made 
from the Inventory Control Point (ICP) to the contractor. Requisitions 
will be issued for DLA owned stock.  Delivery orders will be issued 
for new material.

         (3)  "Shipment" means the date on which the item is delivered 
by the contractor to the designated carrier.

    (b)  The contractor agrees to provide a fill rate of ____% for the 
items included on this contract.  If the agreed upon fill rate of ____% 
is achieved the markup to the contract price which the contractor is 
authorized to charge is    %.  If a fill rate lower than ____% but 
greater than or equal to ____ is realized, the authorized markup is 
reduced to ____%.  If a fill rate less than ____ but greater than or 
equal to ____ is realized, the authorized markup is reduced to ____%.
A fill rate of less than ____% is determined to be an unacceptable 
level of performance.  If the calculated fill rate is less than ____% 
for two successive contract periods, the Government may terminate the 
contract for default; however, if the contract is not terminated, the 
authorized markup for a fill rate less than ____% is reduced to ____%.

    (c)  Items for which orders are received in the first 6 month period 
that cannot be filled for any of the following reasons will not be used 
in the Fill Rate calculation:

       --No Government stock transferred and lead time to obtain stock 
is greater than the time between inclusion of the item on the contract 
(i.e. contract award or contract modification) and the time in which 
the item would normally be included in the fill rate calculation for the 
next contract period.

       --Government Due In not received by the contractor.

       --Contractor receives order(s) for quantities greater than the 
Government provided annual demand estimate.

    (d)  The fill rate will be calculated semiannually on a cumulative 
basis for all orders received in the semiannual contract period.  In 
order to avoid administrative problems, the period of time used to 
calculate the fill rate and the period of time to which a particular 
authorized markup apply will not coincide.  The contractor will calculate 
the fill rate for the preceding six months when the tenth month of the 
contract is completed.  The calculated fill rate and the date on which 
this calculation is based will be provided to DPRO and DSCR within 30 
days after completion of the tenth month and thereafter each subsequent 
six month period for confirmation and concurrence of fill rate.

    (e)  The percentage of on time shipments will be calculated on a 
semiannual basis.  For this clause only, dates will be calculated starting 
with the first complete day after receipt of the order, for example if 
the order is received at 4:00 p.m. on Monday, shipment at any time 
during Tuesday will be counted as shipping on the first day.  For the 
purpose of this clause only, months will be calculated starting with the 
first complete calendar month after the beginning of the contract, for 
example, if issue of the contract is Aug 12, 1994, the first month is 
September, 1994.  Complete records of the fill rate will be maintained 
and made available for Government inspection.

    (f)  The Government will prepare a modification to the contract 
adjusting the authorized markup as needed effective the beginning of the 
thirteenth month.  The subsequent periods for fill rate calculation and 
authorized markup adjustment will be six months from each previous 
calculation/adjustment. The authorized markup for the initial 
twelve month contract period is ____%.