# AFARS PART 5152

Subpart 5152.1 -- Instructions for Using Provisions and Clauses

- 5152.101 -- Using Part 5152.

Subpart 5152.2 -- Texts of Provisions and Clauses

- 5152.237-9000 Economic Price Adjustment (Job Order Contracts)
- 5152.250-1-9000 – Additional information on persons convicted of fraud or other defense-contract-related felonies.

AFARS -- Part 5152
Texts of Provisions and Clauses

Subpart 5152.1 -- Instructions for Using Provisions and Clauses

5152.101 -- Using Part 5152.

(b) Numbering.

(2) Provisions or clauses that supplement the FAR.

(ii)

(A) The numbers of clauses or provisions published in the Federal Register and codified in Title 48, Code of Federal Regulations (CFR), shall be preceded by 51, the Chapter number assigned to the Army by the CFR staff.

(iii) Army major commands must number supplemental provisions or clauses using four-digit sequential numbers in the 5000 series. Their subordinate commands or contracting offices shall use numbers in the 4000 series.

Subpart 5152.2 -- Texts of Provisions and Clauses

5152.237-9000 Economic Price Adjustment (Job Order Contracts)

Application. For job order contracts, insert the following clause in solicitations and contracts in accordance with 5117.9004-2(h).

ADJUSTMENTS TO CONTRACTOR’S COEFFICIENT FOR OPTION YEARS (JOB ORDER CONTRACTS)

Pricing of option periods, to include consideration of any adjustments shall be performed by an economic price adjustment for those periods, as follows:

An economic adjustment will be applied to the contract coefficient(s) addressing changes in the cost of labor, equipment and material in the Unit Price Book (UPB) (this includes consideration of Davis Bacon issues). This allows for economic increase or decrease of the prices in the UPB and serves to adjust line item prices by the percentage increase or decrease of the economic trend in the construction market. The economic price adjustment will be based on the Building Cost Index (BCI) found in the Market Trend pages of the Engineering News Record (ENR). The economic adjustment is not applied to the cost items comprising the coefficient. No upward adjustment shall apply to task orders awarded prior to the effective date of the adjustment, regardless of the date of commencement of work hereunder.

The adjustment will be made in accordance with the following equation. The resulting revised coefficient(s) shall be applied throughout the option year.

N = C + I

Where: N = New Coefficient

C = Base Year Coefficient

I = Change Factor (% increase or decrease from base to option year)

The Index Factor, I, shall be computed according to the following equation:

I = (BCIN/BCIC) - 1

Where:

BCIN is the Building Cost Index, published in the most current issue of ENR at the time of award of the option period.

BCIC is the Building Cost Index, as published in the ENR on the date of the award of the contract. The BCIC is ______, based on the award date of __________.

If the BCI or the ENR ceases to be published, the parties shall agree on substitute indices

EXAMPLE: For the base year of a contract the coefficient is 1.10. The cost to the government for a line item whose cost is $100.00 is 1.10 x $100.00 = $110.00.

OPTION YEAR 1. For the first option year the coefficient will be adjusted as follows:

I = (BCIN/BCIC) -1

I = (3111.86/3071.10) – 1

I = 1.0133 – 1

I = 0.0133

The new coefficient would be calculated as follows:

N = C + I

N = 1.10 + 0.0133

N = 1.1133

The above line item under the option period would be

1.1133 x $100.00 = $111.33.

OPTION YEAR 2. For the second option year, if the BCI is 3062.99, the coefficient will be adjusted as follows:

I = (BCIN/BCIC) – 1

I = (3062.99/3071.10) – 1

I = 0.9974 – 1

I = - 0.0026

The new coefficient will be calculated as follows:

N = C+I

N = 1.10 + (-0.0026)

N 1.0974

The above line item under the second option period would be

1.0974 x $100.00 = $109.74.

Note 1. Round calculations for the Change Factor (I) to the nearest ten thousandth. [AFARS Revision #15, February 17, 2005]

[End of clause.]

5152.250-1-9000 – Additional information on persons convicted of fraud or other defense-contract-related felonies.

As prescribed in 5150.403-3, use the following clause:

ADDITIONAL INFORMATION ON INDEMNIFICATION REQUESTS UNDER CONTRACTS FOR A QUALIFIED ANTI-TERRORISM TECHNOLOGY (NOV 2004)

a. General Information. (1) This contract provides for the delivery of a product, service, technology, or other matter that has been or could be designated by the Department of Homeland Security (DHS) as a Qualified Anti-Terrorism Technology (QATT) under the Support Anti-Terrorism by Fostering Effective Technologies (SAFETY) Act, 6 U.S.C. 441-444. The SAFETY Act defines a QATT as “any product, equipment, service (including support services), device, or technology (including information technology) designed, developed, modified, or procured for the specific purpose of preventing, detecting, identifying, or deterring acts of terrorism or limiting the harm such acts might otherwise cause.” The statute provides sellers of QATTs with significant legal protections against third-party products liability lawsuits.

(2) The SAFETY Act is administered by DHS. The DHS regulations implementing this statute are found at 68 Federal Register 59684 (October 16, 2003) and 6 CFR 25.1-25.9. Additional information about the SAFETY Act is found on the DHS internet site at: https://www.safetyact.gov. Offerors are encouraged to contact the DHS for additional information about this program, and, in appropriate cases, to submit an application to the DHS requesting that their product, service, or technology be designated as a QATT.

(3) Eligibility for a SAFETY Act designation does not preclude the granting of indemnification under Public Law 85-804. The SAFETY Act’s liability protections, however, were designed to substantially reduce the need for the United States to provide indemnification to the sellers of anti-terrorism technologies.

(4) Executive Order (E.O.) 10789, governing the indemnification process, has been amended to require all Federal agencies, including the Department of the Army, to follow certain procedures to ensure that the potential applicability of the SAFETY Act is considered before any indemnification is granted for an anti-terrorism technology. Section 25(a) of E.O. 10789 provides that indemnification may not be approved with respect to any matter that has been or could be designated by the Secretary of Homeland Security as a QATT, unless, after consideration of the authority provided by the SAFETY Act, there has been a determination that indemnification is necessary for the timely and effective conduct of Unites States military or intelligence activities.

b. Contents of Indemnification Requests. In addition to providing the information required by Federal Acquisition Regulation 50.403-1, contractors are encouraged to fully explain why indemnification is necessary for the timely and effective conduct of United States military or intelligence activities, in view of the protections available under the SAFETY Act.

[End of clause.]