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DSCR

DSCR I79: UPWARD CEILING ON ECONOMIC PRICE ADJUSTMENT (EPA)/PRICE ESCALATION

I79   52.216-9G02   UPWARD CEILINGS ON ECONOMIC PRICE  DSCR (JAN 1996)
AND                 ADJUSTMENT/PRICE ESCALATION
I16F31


    Contractor agrees that the total increase in any unit price 
pursuant to the Economic Price Adjustment/Price Escalation 
Provision of this contract shall not exceed ______% (percent) 
of the original base price for individual contract items, except 
in the situations provided hereafter.

    (a)  If at any time the contractor has reason to believe that 
within the near future a price adjustment will be required under 
the Economic Price Adjustment/Price Escalation Provision of this 
contract and that the resultant adjustment when added to the latest 
contract price for the item(s) in question will exceed the current 
contract ceiling price for the item(s), the contractor shall notify 
the Contracting Officer of the expected increase.  At the same time, 
the contractor shall propose a revised ceiling which it believes to 
be sufficient to permit completion of remaining contract performance.
Contractor's proposal shall be supported by appropriate explanations 
and documentation as required by the Contracting Officer.  The 
parties agree to promptly undertake negotiations regarding the 
proposed new ceiling.

    (b)  If, in the absence of an agreement on a new ceiling, notice 
is given by the contractor of an actual price change which results in 
a unit price for contract item(s) which exceeds the current ceiling, 
the contractor will have no further obligation under this contract to 
fill pending or future orders for the specific line item(s) in 
question as of the effective date of the increase, as long as the 
unit price exceeds the ceiling.  If, however, notwithstanding the 
lack of agreement on a new ceiling, the Contracting Officer 
indicates in writing that the Government is prepared to purchase 
the line item(s) for the price as adjusted under the Economic Price 
Adjustment/Price Escalation Provisions beyond the current ceiling, 
the contractor will be obligated to continue to honor orders 
placed for the specific line item in question.