FAR 52.216-4 Economic Price Adjustment—Labor and Material. Basic (Jan 2017)

As prescribed in 16.203-4(c), when contracting by negotiation, insert a clause that is substantially the same as the following clause in solicitations and contracts when the conditions specified in 16.203-4(c)(1)(i) through (iv) apply (but see 16.203-4(c)(2)). The clause may be modified by increasing the 10-percent limit on aggregate increases specified in paragraph (c)(4), upon approval by the chief of the contracting office.

Economic Price Adjustment—Labor and Material (Jan 2017)

(a) The Contractor shall notify the Contracting Officer if, at any time during contract performance, the rate of pay for labor (including fringe benefits) or the unit prices for material shown in the Schedule either increase or decrease. The Contractor shall furnish this notice within 60 days after the increase or decrease, or within any additional period that the Contracting Officer may approve in writing, but not later than the date of final payment under this contract. The notice shall include the Contractor’s proposal for an adjustment in the contract unit prices to be negotiated under paragraph (b) of this clause, and shall include, in the form required by the Contracting Officer, supporting data explaining the cause, effective date, and amount of the increase or decrease and the amount of the Contractor’s adjustment proposal.

(b) Promptly after the Contracting Officer receives the notice and data under paragraph (a) of this clause, the Contracting Officer and the Contractor shall negotiate a price adjustment in the contract unit prices and its effective date. However, the Contracting Officer may postpone the negotiations until an accumulation of increases and decreases in the labor rates (including fringe benefits) and unit prices of material shown in the Schedule results in an adjustment allowable under paragraph (c)(3) of this clause. The Contracting Officer shall modify this contract (1) to include the price adjustment and its effective date and (2) to revise the labor rates (including fringe benefits) or unit prices of material as shown in the Schedule to reflect the increases or decreases resulting from the adjustment. The Contractor shall continue performance pending agreement on, or determination of, any adjustment and its effective date.

(c) Any price adjustment under this clause is subject to the following limitations:

    (1) Any adjustment shall be limited to the effect on unit prices of the increases or decreases in the rates of pay for labor (including fringe benefits) or unit prices for material shown in the Schedule. There shall be no adjustment for—

        (i) Supplies or services for which the production cost is not affected by such changes;

        (ii) Changes in rates or unit prices other than those shown in the Schedule; or

        (iii) Changes in the quantities of labor or material used from those shown in the Schedule for each item.

    (2) No upward adjustment shall apply to supplies or services that are required to be delivered or performed before the effective date of the adjustment, unless the Contractor’s failure to deliver or perform 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.

    (3) There shall be no adjustment for any change in rates of pay for labor (including fringe benefits) or unit prices for material which would not result in a net change of at least 3 percent of the then-current total contract price. This limitation shall not apply, however, if, after final delivery of all line items, either party requests an adjustment under paragraph (b) of this clause.

    (4) The aggregate of the increases in any contract unit price made under this clause shall not exceed 10 percent of the original unit price. There is no percentage limitation on the amount of decreases that may be made under this clause.

(d) The Contracting Officer may examine the Contractor’s books, records, and other supporting data relevant to the cost of labor (including fringe benefits) and material during all reasonable times until the end of 3 years after the date of final payment under this contract or the time periods specified in Subpart 4.7 of the Federal Acquisition Regulation (FAR), whichever is earlier.

(End of clause)

NONE

Subcontractor ✖ C/R ✖ Time and Materials ✖ (Applies when (ii) There is no major element of design engineering or development work involved. (iii) One or more identifiable labor or material cost factors are subject to change.);

52.215-21 Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data—Modifications.

52.216-16 Incentive Price Revision—Firm Target.

52.216-2 Economic Price Adjustment—Standard Supplies.

52.216-3 Economic Price Adjustment—Semistandard Supplies.

52.216-5 Price Redetermination—Prospective.

52.216-6 Price Redetermination—Retroactive.

52.222-30 Construction Wage Rate Requirements—Price Adjustment (None or Separately Specified Method).

52.222-31 Construction Wage Rate Requirements—Price Adjustment (Percentage Method).

52.222-32 Construction Wage Rate Requirements—Price Adjustment (Actual Method).

52.222-43 Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment (Multiple Year and Option Contracts).

52.222-44 Fair Labor Standards Act and Service Contract Labor Standards—Price Adjustment.

52.222-55 Minimum Wages Under Executive Order 13658.

52.229-4 Federal, State, and Local Taxes (State and Local Adjustments).

52.229-6 Taxes—Foreign Fixed-Price Contracts.

52.232-31 Invitation to Propose Financing Terms.

52.233-3 Protest after Award.

52.236-2 Differing Site Conditions.

52.242-14 Suspension of Work.

52.242-15 Stop-Work Order.

52.243-1 Changes—Fixed-Price.

52.243-2 Changes—Cost-Reimbursement.

52.243-3 Changes—Time-and-Materials or Labor-Hours.

52.243-4 Changes.

52.243-5 Changes and Changed Conditions.

52.243-7 Notification of Changes.

52.250-5 SAFETY Act—Equitable Adjustment.

252.216-7000 Economic Price Adjustment—Basic Steel, Aluminum, Brass, Bronze, or Copper Mill Products.

252.216-7001 Economic Price Adjustment–Nonstandard Steel Items.

252.216-7003 Economic Price Adjustment—Wage Rates or Material Prices Controlled by a Foreign Government.

252.216-7007 Economic Price Adjustment—Basic Steel, Aluminum, Brass, Bronze, or Copper Mill Products—Representation.

252.216-7008 Economic Price Adjustment—Wage Rates or Material Prices Controlled by a Foreign Government—Representation.

252.217-7003 Changes.

252.217-7027 Contract Definitization.

252.227-7002 Readjustment of Payments.

252.232-7000 Advance Payment Pool.

252.232-7012 Performance-Based Payments–Whole-Contract Basis.

252.236-7003 Payment for Mobilization and Preparatory Work.

252.236-7004 Payment for Mobilization and Demobilization.

252.237-7023 Continuation of Essential Contractor Services .

252.239-7004 Orders for Facilities and Services.

252.241-7000 Superseding Contract.

252.243-7001 Pricing of Contract Modifications.

252.243-7002 Requests for Equitable Adjustment.

252.247-7000 Hardship Conditions.

252.247-7002 Revision of Prices.

252.249-7000 Special Termination Costs.

1852.215-79 Price Adjustment for "Make-or-Buy" Changes.

1852.242-72 Denied Access to NASA Facilities

1852.243-72 Equitable Adjustments.

5252.211-9503 LEVEL OF EFFORT (COST REIMBURSEMENT) (NAVAIR)(DEC 2012)

5252.243-9505 ENGINEERING CHANGES (NAVAIR)

5252.227-9505 TECHNICAL DATA AND COMPUTER SOFTWARE IDENTIFICATION IN ENGINEERING CHANGE PROPOSALS (ECPs) (NAVAIR)

5252.242-9515 RESTRICTION ON THE DIRECT CHARGING OF MATERIAL (VARIATION)

5252.216-9200 Payment of Fixed Fee (Completion Type)

5252.216-9201 Payment of Fixed Fee Based on Staff-hours (Term Type)

5252.216-9205 Fee Determination and Payment (Indefinite Delivery Type Contracts)

5252.217-9201 Contract Maximum Amount

3052.216-70 Evaluation of offers subject to an economic price adjustment clause.

3052.216-71 Determination of award fee.

3052.231-70 Precontract costs.

5152.237-9000 Adjustments to Contractor’s Coefficient for Option Years (Job Order Contracts).

552.215-72 Price Adjustment—Failure to Provide Accurate Information.

552.216-70 Economic Price Adjustment—FSS Multiple Award Schedule Contracts.

552.216-71 Economic Price Adjustment—Special Order Program Contracts.

552.243-71 Equitable Adjustments.

552.246-70 Source Inspection by Quality Approved Manufacturer.

552.246-77 Additional Contract Warranty Provisions for Supplies of a Noncomplex Nature.

652.216-71 Price Adjustment.

652.237-70 Compensatory Time Off.

652.237-72 Observance of Legal Holidays and Administrative Leave.

952.204-76 Conditional payment of fee or profit—safeguarding restricted data and other classified information.

952.208-70 Printing.

952.216-7 Allowable cost and payment.

952.216-15 Predetermined indirect cost rates.

952.223-76 Conditional payment of fee or profit—safeguarding restricted data and other classified information and protection of worker safety and health.

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