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DSCR

DSCR H6G: PRICE CHANGES

H6G      52.216-9G23      PRICE CHANGES     DSCR (FEB 1996)
AND
H16F35

    (a)  Normal Price Changes - Since the various item prices 
in the contract are based on the military spares price list, 
a modification to the contract revising prices will be issued 
within ____ days of the issuance of a revised military spares 
price list.

         (1)  The overall price increase shall not exceed ____% 
of the original price the first year and shall not exceed ____% 
of the revised price in each subsequent year.  If the contractor 
experiences price increases which cause the overall price to 
exceed ____%, the contractor and the Contracting Officer shall 
promptly negotiate a revised ceiling based upon detailed price 
information provided by the contractor.  If, in the absence of an 
agreement on a new 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 military spares price list beyond 
the current ceiling, the contractor will be obligated to continue 
to honor orders placed for the specific line item in question.

         (2)  If the change in the unit price is equal to or 
greater than a ____% increase, the contractor agrees to provide 
a detailed price justification for that item to the Contracting 
Officer.  If it is discovered that a pricing error has been made 
a contract modification or adjustment shall be issued for those 
delivery orders which incorporated the incorrect price.  Any 
departure from this policy must be agreed to by both the contractor 
and the Government.

    (b)  Extraordinary Price Changes - Various circumstances which 
could arise during the term of the contract may render the pricing 
mechanism of using the military spares price list invalid.  For example, 
a disagreement over forward pricing rates could create a situation where 
the military spares price list is determined to be inaccurate and 
invalid.  If the Government determines that the military spares price 
list is invalid, the contractor agrees to honor the military spares 
price list prices in effect at the time of the determination for a 
period of not less than ____ days.  Upon the Government notification, 
the contractor agrees to notify the DSCR contracting officer and to 
propose a recommended method of pricing the items on the contract in 
the event that no new approved military spares price list is produced.  
The contractor and the Government must agree on any pricing mechanism 
which will substitute for the military spares price list beyond the
____ day period.