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	  <concept id="OYEJJGGD"
            audience="GSAR"
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            class="- topic/topic concept/concept ">
		    <title id="i2127123" xtrf="GSAR" class="- topic/title " xtrc="GSAR">
			      <ph props="autonumber" class="- topic/ph ">516.203-4</ph> Contract clauses.</title>
		    <conbody class="- topic/body  concept/conbody ">
			      <ol id="d313e13" class="- topic/ol ">
				        <li class="- topic/li " audience="GSAR">
					          <p id="d310e17" class="- topic/p " audience="GSAR">
                  <ph props="autonumber" class="- topic/ph ">(a)</ph>
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
						              <i class="+ topic/ph hi-d/i ">Special Order Program Contracts</i>. In multiyear solicitations and contracts, after making the determination required by FAR 16.203-3, use <xref href="GSAM-i1876578.dita#i1876578"
                        outputclass="fm:ParaNumOnly"
                        class="- topic/xref ">552.216-71</xref>, Economic Price Adjustment—Special Order Program Contracts, or a clause prepared as authorized in paragraph (a)(3) of this subsection.</p>
					          <ol id="d313e29" class="- topic/ol ">
						            <li class="- topic/li " audience="GSAR">
							              <p id="d310e33" class="- topic/p " audience="GSAR">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
								                 If the contract includes one or more options to extend the term of the contract, use the clause with its Alternate I or a clause substantially the same as <xref href="GSAM-i1876578.dita#i1876578"
                              outputclass="fm:ParaNumOnly"
                              class="- topic/xref ">552.216-71</xref> with its Alternate I suitably modified.</p>
						            </li>
						            <li class="- topic/li " audience="GSAR">
							              <p id="d310e45" class="- topic/p " audience="GSAR">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
								                 In a contract requiring a minimum adjustment before the price adjustment mechanism is effectuated, use the basic clause with Alternate II or with Alternate I and Alternate II.</p>
						            </li>
						            <li class="- topic/li " audience="GSAR">
							              <p id="d310e54" class="- topic/p " audience="GSAR">
                        <ph props="autonumber" class="- topic/ph ">(3)</ph>
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
								                 If the Producer Price Index is not an appropriate indicator for price adjustment, modify the clause to use an alternate indicator for adjusting prices. Similarly, if other aspects of <xref href="GSAM-i1876578.dita#i1876578"
                              outputclass="fm:ParaNumOnly"
                              class="- topic/xref ">552.216-71</xref> are not appropriate, use an alternate clause following established procedures.</p>
						            </li>
					          </ol>
				        </li>
				        <li class="- topic/li " audience="GSAR">
					          <p id="d310e68" class="- topic/p " audience="GSAR">
                  <ph props="autonumber" class="- topic/ph ">(b)</ph>
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
						              <i class="+ topic/ph hi-d/i ">Adjustments based on cost indexes of labor or material.</i>
					          </p>
					          <ol id="d313e77" class="- topic/ol ">
						            <li class="- topic/li " audience="GSAR">
							              <p id="d310e81" class="- topic/p " audience="GSAR">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
								                 If the contracting officer decides to provide for adjustments based on cost indexes of labor or material, prepare a clause that defines each of the following elements:</p>
							              <ol id="d313e87" class="- topic/ol ">
								                <li class="- topic/li " audience="GSAR">
									                  <p id="d310e91" class="- topic/p " audience="GSAR">
                              <ph props="autonumber" class="- topic/ph ">(i)</ph>
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
										                     The type of labor and/or material subject to adjustment;</p>
								                </li>
								                <li class="- topic/li " audience="GSAR">
									                  <p id="d310e100" class="- topic/p " audience="GSAR">
                              <ph props="autonumber" class="- topic/ph ">(ii)</ph>
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
										                     The labor rates, including any fringe benefits and/or unit prices of materials that may be increased or decreased;</p>
								                </li>
								                <li class="- topic/li " audience="GSAR">
									                  <p id="d310e109" class="- topic/p " audience="GSAR">
                              <ph props="autonumber" class="- topic/ph ">(iii)</ph>
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
										                     The index(es) that will be used to measure changes in price levels and the base period or reference point from which changes will be measured; and</p>
								                </li>
								                <li class="- topic/li " audience="GSAR">
									                  <p id="d310e118" class="- topic/p " audience="GSAR">
                              <ph props="autonumber" class="- topic/ph ">(iv)</ph>
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
                              
										                     The period during which the price(s) will be subject to adjustment.</p>
								                </li>
							              </ol>
						            </li>
						            <li class="- topic/li " audience="GSAR">
							              <p id="d310e129" class="- topic/p " audience="GSAR">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
                        
								                 The contracting director must approve use of this clause.</p>
						            </li>
					          </ol>
				        </li>
			      </ol>
		    </conbody>
	  </concept>
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