DFARS 252.216-7001 Economic Price Adjustment--Nonstandard Steel Items
Prescribed in 216.203-4-70(b) | |
Effective Date: | 1 July 1997 |
Clause or Provision: | Clause |
Provision or Clause Number: | S 252.216-7001 Economic Price Adjustment--Nonstandard Steel Items |
Principle Type And/Or Purpose of Contract: | |
Required: | |
Applicable: | |
Optional: | |
Subject: | |
ProcurementType: | |
Contract Threshold: | |
Prescription Overview: |
Prescription(b) Price adjustment for nonstandard steel items.
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Clause Overview: |
ClauseECONOMIC PRICE ADJUSTMENT -- NONSTANDARD STEEL ITEMS (JUL 1997)(a) DefinitionsAs used in this clause—
“Base labor index” means the average of the labor indices for the three months which consist of the month of bid opening (or offer submission) and the months immediately preceding and following that month.
“Base steel index” means the Contractor's established price (see Note 6) including all applicable extras of $________ per ____________ (see Note 1) for _______________ (see Note 2) on the date set for bid opening (or the date of submission of the offer).
“Current labor index” means the average of the labor indices for the month in which delivery of supplies is required to be made and the month preceding.
“Current steel index” means the Contractor's established price (see Note 6) for that item, including all applicable extras in effect ___ days (see Note 3) prior to the first day of the month in which delivery is required.
“Established price” is—
“Labor index” means the average straight time hourly earnings of the Contractor's employees in the ____________ shop of the Contractor's ________________ plant (see Note 4) for any particular month.
“Month” means calendar month. However, if the Contractor's accounting period does not coincide with the calendar month, then that accounting period shall be used in lieu of “month.”
(b) Each contract unit price shall be subject to revision, under the terms of this clause, to reflect changes in the cost of labor and steel. For purpose of this price revision, the proportion of the contract unit price attributable to costs of labor not otherwise included in the price of the steel item identified under the “base steel index” definition in paragraph (a) shall be _____ percent, and the proportion of the contract unit price attributable to the cost of steel shall be _____ percent. (See Note 5.)
(c)
(d) Any revision in a contract unit price to reflect changes in the cost of steel shall be computed solely by reference to the “base steel index” and the “current steel index.”
(e)
(f)
(g)
(h) If the Contractor's failure to make delivery of any required quantity arises out of causes beyond the control and without the fault or negligence of the Contractor, within the meaning of the clause of this contract entitled “Default,” the quantity not delivered shall be delivered as promptly as possible after the cessation of the cause of the failure, and the delivery schedule set forth in this contract shall be amended accordingly. NOTES:
2 Offeror identify the standard steel mill item to be used in the manufacture of the contract item.
3 Offeror insert best estimate of the number of days required for processing the standard steel mill item in the shop identified under the “labor index” definition.
4 Offeror identify the shop and plant in which the standard steel mill item identified under the “base steel index” definition will be finally fabricated or processed into the contract item.
5 Offeror insert the same percentage figures for the corresponding blanks in paragraphs (b), (e)(3)(i), and (e)(3)(ii). In paragraph (e)(3)(iii), insert the percentage representing the difference between the sum of the percentages inserted in paragraph (b) and 100 percent.
6 In negotiated acquisitions of nonstandard steel items, when there is no “established price” or when it is not desirable to use this price, this paragraph may refer to another appropriate price basis, e.g., an established interplant price. |
Important Notes/Requirements: | |
Subcontract Threshold: | |
Incorporated by Reference: | Yes |
Uniform Contract Format: | |
Editor: | Marshall |
Personal notes.