16.203-4(d)(2)(96) Economic Price Adjustment (EPA) - Actual Material Costs for Subsistence Product Price Business Model.

Insert the clause at DLAD 52.216-9065, Economic Price Adjustment (EPA) ACTUAL MATERIAL COSTS FOR SUBSISTENCE PRODUCT PRICE BUSINESS MODEL in the solicitation and resultant contract for subsistence acquisitions that utilize "the product price business model" to protect the Contractor and the Government against unpredictable increases and decreases in actual material costs charged by the Contractor's suppliers. This EPA clause is applicable to OCONUS Subsistence Prime Vendor (SPV) procurements. The language in the basic clause is applicable to procurements in OCONUS locations that do not require the specific distribution pricing language in alternates I or II.

The remainder of the basic clause other than paragraph b(S) is applicable to all OCONUS locations. The Contracting Officer shall insert the applicable ceiling percentage in paragraph (d) as determined by the Chief ofthe Contracting Office or designee. Explicit approval must be obtained for any ceiling exceeding ten (10) percent in accordance with DLAD 16.203-3(94).

Buyer fill in is required in paragraphs b(3)(i)(I); beD); b(S); (b)(S)(b); b(7); c(1)(ii); c (l)(iii); c(I)(v); c(1)(vi); and (d). The buyer shall coordinate with the DLA Troop Support Pricing Office before completion offill-in-the-blank information sections of the clause to ensure the accuracy ofthe information filled in. The cost/price analyst at DLA Troop Support will also review information on normal and premium distribution price that is included in the statement of work for adequacy/accuracy. Additionally, for acquisitions that require review and approval by the DLA HQ Integrated Acquisition Review Board (I-ARB), these fill-in paragraphs and statement of work sections related to normal and premium pricing definitions will be reviewed for adequacy/accuracy by the J-73 Cost/Price Analyst in coordination with General Counsel.

Use ALT I (APR 2011) for support to Afghanistan.

Use ALT II (APR 2011) for SUppOit to specifically identified OCONUS locations. DLA Troop SUPPOIt will identify the specific OCONUS location(s) where Alternate II is required when section (b)(S) in the basic clause does not adequately address the circumstances of those locations. The basis for this determination will be included in the contract file.