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. Buyer fill-in required in the following paragraphs:

(b)  Definition (2) Product Price: Buyer shall fill in day and week and time.

(c)  Price adjustments (1) General, B, D, and E: Buyer shall insert day of week and time.

(d)  UPWARD CEILING ON ECONOMIC PRICE ADJUSTMENT: Buyer shall insert the appropriate item price ceiling percentage(s) considering market violatility of each item covered by the contract.

Buyer will ensure that the acquisition plan documents the need for an EPA ceiling in excess of 10% and applicable approvals (see DLAD 16.203-3(94).