Difference between revisions of "FAR 52.216-2 - Economic Price Adjustment - Standard Supplies"
(2 intermediate revisions by one user not shown) | |||
Line 3: | Line 3: | ||
|ClauseorProvision=Clause | |ClauseorProvision=Clause | ||
|Prescribedin=16.203-4(a) | |Prescribedin=16.203-4(a) | ||
− | | | + | |TypeofContractOptional=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 |
|PrescriptionOverview===Prescription== | |PrescriptionOverview===Prescription== | ||
'''(a)''' Adjustment based on established prices—standard supplies. | '''(a)''' Adjustment based on established prices—standard supplies. | ||
+ | |||
(1) The contracting officer shall, when contracting by negotiation, insert the clause at 52.216-2, Economic Price Adjustment—Standard Supplies, or an agency-prescribed clause as authorized in paragraph (a)(2) of this subsection, in solicitations and contracts when all of the following conditions apply: | (1) The contracting officer shall, when contracting by negotiation, insert the clause at 52.216-2, Economic Price Adjustment—Standard Supplies, or an agency-prescribed clause as authorized in paragraph (a)(2) of this subsection, in solicitations and contracts when all of the following conditions apply: | ||
+ | |||
:(i) A fixed-price contract is contemplated. | :(i) A fixed-price contract is contemplated. | ||
+ | |||
:(ii) The requirement is for standard supplies that have an established catalog or market price. | :(ii) The requirement is for standard supplies that have an established catalog or market price. | ||
+ | |||
:(iii) The contracting officer has made the determination specified in 16.203-3. | :(iii) The contracting officer has made the determination specified in 16.203-3. | ||
+ | |||
(2) If all the conditions in paragraph (a)(1) of this subsection apply and the contracting officer determines that the use of the clause at 52.216-2 is inappropriate, the contracting officer may use an agency-prescribed clause instead of the clause at 52.216-2. | (2) If all the conditions in paragraph (a)(1) of this subsection apply and the contracting officer determines that the use of the clause at 52.216-2 is inappropriate, the contracting officer may use an agency-prescribed clause instead of the clause at 52.216-2. | ||
− | |||
+ | (3) If the negotiated unit price reflects a net price after applying a trade discount from a catalog or list price, the contracting officer shall document in the contract file both the catalog or list price and the discount. (This does not apply to prompt payment or cash discounts.) | ||
|FARClauseOverview===Clause== | |FARClauseOverview===Clause== | ||
Line 26: | Line 31: | ||
:(1) Is an established catalog or market price for a commercial item sold in substantial quantities to the general public; and | :(1) Is an established catalog or market price for a commercial item sold in substantial quantities to the general public; and | ||
+ | |||
:(2) Is the net price after applying any standard trade discounts offered by the Contractor. | :(2) Is the net price after applying any standard trade discounts offered by the Contractor. | ||
Line 34: | Line 40: | ||
'''(c)''' If the Contractor’s applicable established price is increased after the contract date, the corresponding contract unit price shall be increased, upon the Contractor’s written request to the Contracting Officer, by the same percentage that the established price is increased, and the contract shall be modified accordingly, subject to the following limitations: | '''(c)''' If the Contractor’s applicable established price is increased after the contract date, the corresponding contract unit price shall be increased, upon the Contractor’s written request to the Contracting Officer, by the same percentage that the established price is increased, and the contract shall be modified accordingly, subject to the following limitations: | ||
+ | |||
:(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. | :(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— | :(2) The increased contract unit price shall be effective— | ||
Line 42: | Line 50: | ||
::(ii) If the written request is received later, on the date the Contracting Officer receives the request. | ::(ii) If the written request is received later, on the date the Contracting Officer receives the request. | ||
+ | |||
:(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. | :(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. | :(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. | :(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. |
Latest revision as of 12:19, 15 April 2015
Prescribed in 16.203-4(a) | |
Effective Date: | 1 June 2014 |
Clause or Provision: | Clause |
Provision or Clause Number: | 52.216-2 - Economic Price Adjustment - Standard Supplies |
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: | |
ProcurementType: | |
Contract Threshold: | |
Prescription Overview: |
Prescription(a) Adjustment based on established prices—standard supplies.
|
Clause Overview: |
Clause(a) The Contractor warrants that the unit price stated in the Schedule for _________ [offeror insert Schedule line item number] is not in excess of the Contractor’s applicable established price in effect on the contract date for like quantities of the same item. The term “unit price” excludes any part of the price directly resulting from requirements for preservation, packaging, or packing beyond standard commercial practice. The term “established price” means a price that—
|
Important Notes/Requirements: |
Letter Contracts Only |
Subcontract Threshold: | |
Incorporated by Reference: | No |
Uniform Contract Format: | |
Editor: | Marshall |
Personal notes.