FAR 52.216-3 - Economic Price Adjustment - Semistandard Suppplies
Prescribed in 16.203-4(b) | |
Effective Date: | 1 January 1997 |
Clause or Provision: | Clause |
Provision or Clause Number: | 52.216-3 - Economic Price Adjustment - Semistandard Suppplies |
Principle Type And/Or Purpose of Contract: | |
Required: | |
Applicable: | |
Optional: | Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Facilities; Indefinite Delivery; Dismantling, Demolition or Removal of Improvements; Leasing of Motor Vehicles; Fixed Price, Construction; Time & Material/Labor Hour; Cost Reimbursement, Construction; Fixed Price, Service; Fixed Price, Supply; Cost Reimbursement, Supply; Cost Reimbursement, Service |
Subject: | Economic Price Adjustment |
ProcurementType: | |
Contract Threshold: | |
Prescription Overview: |
Prescription(b) Adjustment based on established prices—semistandard supplies. (1) The contracting officer shall, when contracting by negotiation, insert the clause at 52.216-3, Economic Price Adjustment—Semistandard Supplies, or an agency-prescribed clause as authorized in paragraph (b)(2) of this section, in solicitations and contracts when all of the following conditions apply:
(2) If all conditions in paragraph (b)(1) of this subsection apply and the contracting officer determines that the use of the clause at 52.216-3 is inappropriate, the contracting officer may use an agency-prescribed clause instead of the clause at 52.216-3. |
Clause Overview: |
Clause(a) The Contractor warrants that the supplies identified as line items __________ [offeror insert Schedule line item number] in the Schedule are, except for modifications required by the contract specifications, supplies for which it has an established price. The term “established price” means a price that:
The Contractor further warrants that, as of the date of this contract, any difference between the unit prices stated in the contract for these line items and the Contractor’s established prices for like quantities of the nearest commercial equivalents are due to compliance with contract specifications and with any contract requirements for preservation, packaging, and packing beyond standard commercial practice.
(1) The aggregate of the increases in any contract unit price under this clause shall not exceed 10 percent of the original contract unit price. (2) The increased contract unit price shall be effective—
(3) The increased contract unit price shall not apply to quantities scheduled under the contract for delivery before the effective date of the increased contract unit price, unless failure to deliver before that date results from causes beyond the control and without the fault or negligence of the Contractor, within the meaning of the Default clause. (4) No modification increasing a contract unit price shall be executed under this paragraph (c) until the Contracting Officer verifies the increase in the applicable established price. (5) Within 30 days after receipt of the Contractor’s written request, the Contracting Officer may cancel, without liability to either party, any undelivered portion of the contract items affected by the requested increase. (d) During the time allowed for the cancellation provided for in paragraph (c)(5) of this clause, and thereafter if there is no cancellation, the Contractor shall continue deliveries according to the contract delivery schedule, and the Government shall pay for such deliveries at the contract unit price, increased to the extent provided by paragraph (c) of this clause. |
Important Notes/Requirements: | |
Subcontract Threshold: | |
Incorporated by Reference: | No |
Uniform Contract Format: | I |
Editor: | Marshall |
Personal notes.