16.203-4(d)(2)(92)

Use 52.216-9050, Economic Price Adjustment (EPA) of the Annual Inventory Holding Fee and Annual Inventory Holding Cost for the Option Year, in Medical solicitations for readiness items which result in Corporate Exigency Contracts or Vendor Managed Inventory Contracts.

Adjustments are based upon changes in the Prime Rate. One adjustment is authorized annually to determine the annual Inventory Holding Fee and Inventory Holding Cost for the upcoming option year. Upward adjustments may be requested by the Contractor. Downward adjustments are mandated by the clause. No adjustment is authorized for the base year.