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

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Prescribed in 216.203-4-70(c)(1)
Effective Date:	1 March 2012
Clause or Provision:	Clause
Provision or Clause Number:	S 252.216-7003 Economic Price Adjustment--Wage Rates or Material Prices Controlled by a Foreign Government
Principle Type And/Or Purpose of Contract:
Required:
Applicable:
Optional:
Subject:
ProcurementType:
Contract Threshold:
Prescription Overview:	Prescription (c) Price adjustment for wage rates or material prices controlled by a foreign government. (1) (i) The price adjustment clause at 252.216-7003, Economic Price Adjustment—Wage Rates or Material Prices Controlled by a Foreign Government, may be used in fixed-price supply and service solicitations and contracts when— (A) The contract is to be performed wholly or in part in a foreign country; and (B) A foreign government controls wage rates or material prices and may, during contract performance, impose a mandatory change in wages or prices of material. (ii) Verify the base wage rates and material prices prior to contract award and prior to making any adjustment in the contract price.
Clause Overview:	Clause economic PRICE adjustment--WAGE RATES OR MATERIAL PRICES CONTROLLED BY A FOREIGN GOVERNMENT (MAR 2012) (a) As represented by the Contractor in its offer, the prices set forth in this contract— (1) Are based on the wage rate(s) or material price(s) established and controlled by the government of the country specified by the Contractor in its offer; and (2) Do not include contingency allowances to pay for possible increases in wage rates or material prices. (b) If wage rates or material prices are revised by the government named in paragraph (a) of this clause, the Contracting Officer shall make an equitable adjustment in the contract price and shall modify the contract to the extent that the Contractor’s actual costs of performing this contract are increased or decreased, as a direct result of the revision, subject to the following: (1) For increases in established wage rates or material prices, the increase in contract unit price(s) shall be effective on the same date that the government named in paragraph (a) of this clause increased the applicable wage rate(s) or material price(s), but only if the Contracting Officer receives the Contractor’s written request for contract adjustment within 10 days of the change. If the Contractor’s request is received later, the effective date shall be the date that the Contracting Officer received the Contractor’s request. (2) For decreases in established wage rates or material prices, the decrease in contract unit price(s) shall be effective on the same date that the government named in paragraph (a) of this clause decreased the applicable wage rate(s) or material price(s). The decrease in contract unit price(s) shall apply to all items delivered on and after the effective date of the government’s rate or price decrease. (c) No modification changing the contract unit price(s) shall be executed until the Contracting Officer has verified the applicable change in the rates or prices set by the government named in paragraph (a) of this clause. The Contractor shall make available its books and records that support a requested change in contract price. (d) Failure to agree to any adjustment shall be a dispute under the Disputes clause of this contract.
Important Notes/Requirements:
Subcontract Threshold:
Incorporated by Reference:	Yes
Uniform Contract Format:
Editor:	Marshall

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Personal notes.