As prescribed at 16.203-4(a) (2) (101), insert the following clause:

ECONOMIC PRICE ADJUSTMENT - PETROLEUM PRODUCT PRICE, POST CAMP & STATION (PC&S) (Jul 2010) - DLAD

(a)  WARRANTIES: The Contractor warrants that-

(1)  The unit prices set forth in the Schedule do not include allowances for any portion of the contingency covered by this clause; and

(2)  The prices to be invoiced hereunder shall be computed daily in accordance with the provisions of this clause.

(b)  DEFINITIONS: As used throughout this clause, the term--

(1)  Base price means-

(i)  The unit price offered for an item and included in the contract award schedule; or

(ii)  During any subsequent program year, either the effective contract price as of the start of the subsequent program year, or the price agreed upon as of the start of the subsequent program year.

(2)  Base reference price means the reference price for an item as published on__________. In the event one or more applicable reference prices are not (or were not) published on the date shown, then the term base reference price means the reference price for an item as published on the date nearest in time prior to the date shown.

(3)  Reference price means that published reference price or combination of published reference prices for price adjustment of individual items by product, market area, and publication as specified in (f) below.

(4)  Date of delivery means-

(i)  FOR TANKER OR BARGE DELIVERIES.

(a)  F.O.B. ORIGIN: The date and time vessel commences loading.

(b)  F.O.B. DESTINATION: The date and time vessel commences discharging.

(ii)  FOR ALL OTHER TYPES OF DELIVERIES: The date product is received on a truck-by-truck basis.

(5)  Published means issued in either printed or electronic format by the service designated to be employed as an escalator, unless otherwise specifically stated. In the event of a conflict between the price set forth in the print version and those set forth in the electronic version for the same date, the electronic version shall prevail unless otherwise specified in (c) below.

(c)  ADJUSTMENTS: Contract price adjustments shall be provided via notification through contract modifications and/or posting to the DLA Energy ( formerly DESC ) web page at http://www.desc.dla.mil under the heading Vendor Resources and then Product Price Adjustments to reflect any price change pursuant to this clause.

(1)  CALCULATIONS: The prices payable hereunder shall be determined by adjusting the award price by the same number of cents, or fraction thereof, that the daily reference price increases or decreases, per like unit of measure. All arithmetical calculations, including the final adjusted unit price, shall be carried to six decimal places.

(i)  OIL PRICE INFORMATION SERVICE (OPIS): For all items employing OPIS, the reference price in effect on the date of delivery shall be the end of day OPIS rack average effective (6:00 p.m. timestamp) that day. In the event there is no price published for date of delivery, then it shall be the item's reference price that was last in effect.

(ii)  OTHER PUBLICATIONS: Except for items employing OPIS, the reference price in effect on the date of delivery shall be that item's preselected reference price that is in effect the date of delivery. In the event there is no price published for date of delivery, then it shall be the item's reference price that was last in effect.

(2)  REVISION OF PUBLISHED REFERENCE PRICE: In the event-

(i)  Any applicable reference price is discontinued or its method of derivation is altered substantially; or

(ii)  The Contracting Officer determines that the reference price consistently and substantially failed to reflect market conditions-- the parties shall mutually agree upon an appropriate and comparable substitute for determining the price adjustments hereunder. The contract shall be modified to reflect such substitute effective on the date the reference price was discontinued, altered, or began to consistently and substantially fail to reflect market conditions. If the parties fail to agree on an appropriate substitute, the matter shall be resolved in accordance with paragraph (d), Disputes, of the CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS clause of this contract.

(3)  FAILURE TO DELIVER: Notwithstanding any other provisions of this clause, no upward adjustment shall apply to product scheduled under the contract to be delivered before the effective date of the adjustment, unless the Contractor's failure to deliver according to the delivery schedule results from causes beyond the Contractor's control and without its fault or negligence within the meaning of paragraphs (f), Excusable Delays, and (m), Termination for Cause, of the CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS clause of this contract in which case the contract shall be amended to make an equitable extension of the delivery schedule.

(4)  UPWARD CEILING ON ECONOMIC PRICE ADJUSTMENT: The Contractor agrees that the total increase in any contract unit price pursuant to these economic price adjustment provisions shall not exceed ____________ percent (%) of the of the base price in any applicable program year, except as provided below.

(i)  If at any time the Contractor has reason to believe that within the near future a price adjustment under the provisions of this clause will be required that will exceed the current contract ceiling price for any item, the Contractor shall promptly notify the Contracting Officer in writing of the expected increase. The notification shall include a revised ceiling the Contractor believes is sufficient to permit completion of remaining contract performance, along with an appropriate explanation and documentation as required by the Contracting Officer.

(ii)  If an actual increase in the reference price would raise a contract unit price for an item above the current ceiling, the Contractor shall have no obligation under this contract to fill pending or future orders for such item, as of the effective date of the increase, unless the Contracting Officer issues a contract modification to raise the ceiling. If the contract ceiling will not be raised, the Contracting Officer shall so promptly notify the Contractor in writing.

(d)  EXAMINATION OF RECORDS: The Contractor agrees that the Contracting Officer or designated representatives shall have the right to examine the Contractor's books, records, documents, or other data the Contracting Officer deems necessary to verify Contractor adherence to the provisions of this clause.

(e)  FINAL INVOICE: The Contractor shall include a statement on the final invoice that the amounts invoiced hereunder have applied all decreases required by this clause.

(f)  PUBLICATIONS. The following publication(s) is (are) used:

End of Clause