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   <concept id="i1876529"
            audience="GSAR"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title xtrc="GSAR" class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">552.216-70</ph> Economic
Price Adjustment—FSS Multiple Award Schedule Contracts.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p audience="GSAR" class="- topic/p ">As prescribed in <xref outputclass="fm:ParaNumOnly"
                  href="GSAM-OYEJJGGD.dita#OYEJJGGD"
                  class="- topic/xref "/>(a),
insert the following clause:</p>
         <p audience="GSAR" outputclass="Ctr_SmCaps" class="- topic/p ">Economic Price Adjustment—FSS
Multiple Award Schedule Contracts (Sep1999)</p>
         <p audience="GSAR" class="- topic/p ">Price adjustments include price increases and
price decreases. Adjustments will be considered as follows:</p>
         <ol id="d811e24" class="- topic/ol ">
            <li audience="GSAR" class="- topic/li ">
               <p id="d803e29" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(a)</ph>  Contractors
shall submit price decreases anytime during the contract period
in which they occur. Price decreases will be handled in accordance
with the provisions of the Price Reduction Clause.</p>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d803e38" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(b)</ph>  Contractors may request
price increases under the following conditions:</p>
               <ol id="d811e43" class="- topic/ol ">
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d803e48" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>  Increases resulting
from a reissue or other modification of the Contractor’s commercial
catalog/pricelist that was used as the basis for the contract award.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d803e57" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>  Only three increases
will be considered during the contract period.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d803e66" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(3)</ph>  Increases are requested
after the first 30days of the contract period and prior to the last
60days of the contract period.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d803e75" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(4)</ph>  At least 30days elapse
between requested increases.</p>
                  </li>
               </ol>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d803e86" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(c)</ph>  The aggregate of the
increases in any contract unit price under this clause shall not
exceed <u class="+ topic/ph hi-d/u "/>
                  <u class="+ topic/ph hi-d/u "/>
                  <cite outputclass="SingleLine" xtrc="552.216-70_d846e94"/>* percent
of the original contract unit price. The Government reserves the
right to raise this ceiling where changes in market conditions during
the contract period support an increase.</p>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d803e99" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(d)</ph>  The following material
shall be submitted with the request for a price increase:</p>
               <ol id="d811e104" class="- topic/ol ">
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d803e109" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>  A
copy of the commercial catalog/pricelist showing the price increase
and the effective date for commercial customers.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d803e118" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>  Commercial Sales Practice
format regarding the Contractor’s commercial pricing practice relating
to the reissued or modified catalog/price- list, or a certification
that no change has occurred in the data since completion of the
initial negotiation or a subsequent submission.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d803e127" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(3)</ph>  Documentation supporting
the reasonableness of the price increase.</p>
                  </li>
               </ol>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d803e138" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(e)</ph>  The Government reserves
the right to exercise one of the following options:</p>
               <ol id="d811e143" class="- topic/ol ">
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d803e148" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>  Accept
the Contractor’s price increases as requested when all conditions
of (b), (c), and (d) of this clause are satisfied;</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d803e157" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>  Negotiate more favorable
discounts from the new commercial prices when the total increase
requested is not supported; or,</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d803e166" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(3)</ph>  Remove the product(s)
from contract involved pursuant to the Cancellation Clause of this
contract, when the increase requested is not supported.</p>
                  </li>
               </ol>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d803e178" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(f)</ph>  The contract modification
reflecting the price adjustment shall be signed by the Government
and made effective upon receipt of notification from the Contractor
that the new catalog/pricelist has been mailed to the addressees
previously furnished by the Contracting Officer, provided that in
no event shall such price adjustment be effective prior to the effective date
of the commercial price increases. The increased contract prices
shall apply to delivery orders issued to the Contractor on or after
the effective date of the contract modification.</p>
            </li>
         </ol>
         <p audience="GSAR" outputclass="Ital" class="- topic/p ">*Insert the percent appropriate
at the time the solicitation is issued. This percentage should normally
be 10 percent, unless based on a trend established by an appropriate
index such as the Producer Prices and Price Index during the most
recent 6-month period indicates that a different percentage is more
appropriate. Any ceiling other than 10 percent must be approved
by the contracting director.</p>
         <p audience="GSAR" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
         <p audience="GSAR" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">Alternate I (Sep 1999)</i>. As prescribed
by <xref outputclass="fm:ParaNumOnly"
                  href="GSAM-OYEJJGGD.dita#OYEJJGGD"
                  class="- topic/xref "/>(a)(2),
substitute the following for paragraphs (b) and (c) of the clause:</p>
         <p audience="GSAR" class="- topic/p ">(b)  Contractors may request price
increases to be effective on or after the first 12 months of the
contract period providing all of the following conditions are met:</p>
         <ol class="- topic/ol ">
            <li audience="GSAR" class="- topic/li ">
               <ol id="d811e203" class="- topic/ol ">
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d803e209" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>  Increases
resulting from a reissue or other modification of the Contractor’s
commercial catalog/pricelist that was used as the basis for the
contract award.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d803e218" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>   No more than three
increases will be considered during each succeeding 12-month period
of the contract.(For succeeding contract periods of less than 12months,
up to three increases will be considered subject to the other conditions
of this paragraph (b)).</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d803e227" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(3)</ph>  Increases are requested
before the last 60days of the contract period.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d803e236" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(4)</ph>  At least 30 days elapse
between requested increases.</p>
                  </li>
               </ol>
            </li>
         </ol>
         <p audience="GSAR" class="- topic/p ">(c)  Any contract period during which
price increases will be considered, the aggregate of the increases
during any 12-month period shall not exceed <cite outputclass="SingleLine" xtrc="552.216-70_d846e252">_____</cite>* percent of the contract
unit price in effect at the end of the preceding 12-month period.
The Government reserves the right to raise the ceiling when market
conditions during the contract period support such a change.</p>
         <p audience="GSAR" outputclass="Ital" class="- topic/p ">*Insert the percentage
appropriate at the time the solicitation is issued. This percentage
should be determined based on the trend established by an appropriate
index such as the Producer Prices and Price Index. A ceiling of
more than 10percent must be approved by the Contracting Director.</p>
      </conbody>
   </concept>
</dita>
