WHEN USED: This clause may be included in solicitations and resulting contracts for fiberboard boxes, liners and /or other items identified therein, when: (1)  unpredictable increases or decreases in the cost of the items are expected; (2) the changes can be tracked by published market prices to be used for price adjustment purposes; (3) the Contracting Officer considers the use of this clause appropriate; and (4) the requirements of DLAD 16.203-2, -3, and -4 are met. This clause is approved for use by DDC only.

NOTES:

1. Paragraphs (b)(1): Contracting Officer shall insert identification of where the market prices can be found, e.g.:

"the "Price Watch: Paperboard/Packaging" table contained in the PPI Pulp & Paper Week Price Watch (a RISI Inc. publication of Pulp & Paper Market News for North America)"

2. Paragraph (b)(1): Contracting Officer shall insert identification of the market price(s)  to be used, e.g. :

" Linerboard (42-lb)  Unbleached kraft, East (list $### - $###)  

Linerboard (42-lb) Unbleached kraft, West (list $### - $###)

Corrugating medium Semichemical, East (list $### - $###)  

Corrugating medium Semichemical, West (list $### - $###)"

(Note: Contracting Officer shall modify subparagraphs (b)(1)(i), (b)(1)(ii), (b)(4)  and (b)(4)(i) if separate regional prices are not applicable.

3. Paragraph (d)(1): Contracting Officer shall fill-in the overall percentage, or the percentage of each contract item price, that is deemed to represent the ordered price of the item(s) as applicable, e.g., "70" percent.

4. Paragraph (d)(4): Contracting Officer shall fill-in the percentage of the increase/decrease threshold for triggering a price increase or decrease band, e.g., "4" percent.

5. Paragraph (e)(1): The Contracting Officer shall fill-in the aggregate annual percentage limitation. This percentage is subject to 10% per annum aggregate limit, unless a higher limit is approved by the Chief of the Contracting Office or designee (DLAD 16.203-3(94)). Such rationale and approval for any ceiling over the 10% per annum limit must be documented in the contract file.