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                            17.109 Contract clauses.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart17.017.117.217.417.517.617.7
Section17.10117.10217.10317.10417.10517.10617.10717.10817.109
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17.109 Contract clauses.17.109 Contract clauses.       (a) 						            The contracting officer shall insert the clause at  52.217-2, Cancellation Under Multi-year Contracts, in solicitations and contracts when a multi-year contract is contemplated.                                          (b)                   *Economic price adjustment clauses*. Economic price adjustment clauses are adaptable to multi-year contracting needs. When the period of production is likely to warrant a labor and material costs contingency in the contract price, the contracting officer should normally use an economic price adjustment clause (see  16.203). When contracting for services, the contracting officer-                                                         (1) 								                Shall add the clause at  52.222-43, Fair Labor Standards Act and Service Contract Labor Standards- Price Adjustment (Multiple Year and Option Contracts), when the contract includes the clause at  52.222-41, Service Contract Labor Standards;                                                            (2) 								                May modify the clause at  52.222-43 in overseas contracts when laws, regulations, or international agreements require contractors to pay higher wage rates; or                                                            (3) 								                May use an economic price adjustment clause authorized by  16.203, when potential fluctuations require coverage and are not included in cost contingencies provided for by the clause at  52.222-43.    **Parent topic:**  Subpart 17.1 - Multi-year Contracting
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