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DSCR

DSCR I62H: PRICING CAVEAT

I62H    52.215-9G08       PRICING CAVEAT        DSCR (FEB 2001)
AND
I15F31


     The Government's pricing methodology individually prices 
"cost drivers" and uses a formula approach (price based) to price 
the non-cost drivers.  This clause will be used to minimize the 
risk of a non-cost driver becoming a cost driver after the contract 
is awarded as a result of unanticipated demand.  In this instance, 
the Government and the contractor will enter into negotiations to 
individually price the non-cost driver using the same criteria as 
used for the cost drivers.  For the purpose of this clause, a 
non-cost driver will become a cost driver only when the total 
price (contract unit price X quantity ordered for each 12 month 
period from the contract award date) exceeds $20,000.00.  The 
contract shall notify the Government in writing when a non-cost 
driver becomes a cost driver.  If as a result of negotiations, 
a revised contract price is agreed upon, a bilateral modification 
will be issued to that effect and will be retroactive for the 
existing contract period.  If the parties cannot agree, the 
contracting officer may unilaterally determine the price, subject 
to the Disputes Clause.