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DSCR

DSCR I84U: ECONOMIC PRICE ADJUSTMENT-PUBLISHED MARKET PRICE

I84U      52.216-9G45     ECONOMIC PRICE ADJUSTMENT-PUBLISHED MARKET 
AND                       PRICE  DSCR  (APR 2006)
I16F48

(a)  WARRANTIES.  The Contractor warrants that--
	
	(1)  The base unit prices set forth in the Schedule do not include
 allowances for any portion of the contingency covered by this clause; and
	(2)  The prices to be invoiced shall be computed in accordance with
 the provisions of this clause.

(b)  DEFINITIONS.  As used throughout this clause--
         	
	(1)  "Market price" is the price to be used in determining an 
economic  price adjustment of the base unit price of an individual product
for the market area and time period specified in this clause. The market
price is derived from quotes, assessments, or sales prices in the market 
place for one or several items or commodity groups as reported in a 
consistent manner in a publication, electronic data base, or other form,
as determined by an independent trade association, government body, or other
third party independent of the Contractor.  For purposes of this contract 
the market price is:  ____________________________________________________
         
	(2)  "Base unit price" is the unit price applicable to a quantity 
of a contract line item scheduled for delivery during the initial contract
period, or during an option period, exclusive of any price adjustment 
pursuant to this clause.	

	(3)  "Base period" is the three calendar months preceding the month
containing, as applicable, the date of bid opening under sealed bid 
procedures or the closing date for receipt of offers (best and final offers, 
if discussions were held) under negotiation procedures.

	(4)  "Base market price" is the arithmetic average of the market
price values for the base period.
       	
	(5)  "Adjusting market price" for items scheduled for delivery during
the first three calendar months of contract performance is the arithmetic 
average of the initial market price values applicable to the three months 
immediately preceding the month prior to the first month of contract 
performance.  For subsequent quarterly periods, the adjusting market price 
is the arithmetic average of the three calendar months immediately preceding
the month prior to the first month of the three month contract period for
which a prospective adjustment is being calculated.
	 
	(6)  "Adjusted contract unit price" is the base unit price, adjusted 
quarterly on a prospective basis and rounded to four decimal places.
	
(c)  ADJUSTMENTS.

	(1) Promptly following publication of the market price for the second
month in each consecutive three calendar month period of contract performance,
the Contracting Officer shall calculate the adjusting market price and any 
adjusted contract unit price(s), and modify the contract accordingly.

	(2)  CALCULATIONS.  All calculations shall be rounded to four 
decimal places.

	(3)  MODIFICATIONS.   Price adjustments under this clause shall be 
effected by contract modification showing the base market price, calculation
of the adjusting market price, the base unit price, and the calculations used
to arrive at the adjusted contract unit price(s).		

	 (4)  INVOICES.  The prices payable under this contract will be based
on the latest adjusted unit price incorporated into the contract.  In the event
the adjusted unit price is not yet available for the month in which deliveries
were made, the most recent adjusted unit price for the particular item shall
be invoiced.

	(5)  FAILURE TO DELIVER.  Notwithstanding any other provisions of this
clause, no upward adjustment shall apply to product scheduled under the contract
to be delivered before the effective date of the adjustment, unless the 
Contractor’s failure to deliver according to the delivery schedule results from
causes beyond the Contractor’s control and without its fault or negligence, 
within the meaning of the Default clause of this contract.

	(6)  UPWARD CEILING ON ECONOMIC PRICE ADJUSTMENT.  The Contractor agrees
that the total increase in any contract unit price pursuant to these economic 
price adjustment provisions shall not exceed ___% (percent) of the original
base unit price in any applicable contract year (whether a single year or
multiyear program), except as provided hereafter.

          (i)  If at any time the Contractor has reason to believe that within 
the near future a price adjustment under the provisions of this clause will be
required that will exceed the current contract ceiling price for any item, the
Contractor shall promptly notify the Contracting Officer in writing of the 
expected increase.  The notification shall include a revised ceiling the
Contractor believes is sufficient to permit completion of remaining contract
performance, along with appropriate explanation and documentation as required 
by the Contracting Officer.

			 (ii)  If an actual increase in the market price would
raise a contract unit price for an item above the current ceiling, the 
Contracting Officer may issue a contract modification to raise the ceiling.  If
the contract ceiling will not be raised, the Contracting Officer shall so
promptly notify the Contractor in writing. 
 
	 (7)  REVISION OF MARKET PRICE INDICATOR.  In the event –

			(i)  Any applicable market price indicator is discontinued
or its method of derivation is altered substantially; or

			 (ii)  The Contracting Officer determines that the 
market price indicator consistently and substantially fails to reflect market 
conditions, the parties shall mutually agree upon an appropriate and comparable 
substitute and the contract shall be modified to reflect such substitute effective 
on the date the price was discontinued, altered, or began to consistently and 
substantially fail to reflect market conditions.     

(d)  FINAL INVOICE.  The Contractor shall include a statement on the final invoice
that the amounts invoiced hereunder have applied all decreases required by this 
clause.

(e)  DISPUTES.  Any dispute arising under this clause shall be determined in 
accordance with and subject to the “Disputes” clause of the contract.

[End of Clause]