216.203-4  Contract clauses.

(1)  Generally, use the clauses at FAR 52.216-2, Economic Price Adjustment- Standard Supplies, FAR 52.216-3, Economic Price Adjustment-Semistandard Supplies, and FAR 52.216-4, Economic Price Adjustment-Labor and Material, only when-

(i)  The total contract price exceeds the simplified acquisition threshold; and

(ii)  Delivery or performance will not be completed within 6 months after contract award.

(2)  Follow the procedures at PGI 216.203-4 when using an economic price adjustment clause based on cost indexes of labor or material.