52.216-3 Economic Price AdjustmentSemistandard Supplies.

As prescribed in 16.203-4(b), insert the following clause:

Economic Price Adjustment-Semistandard Supplies (Nov 2021)

(a) The Contractor warrants that the supplies identified as line items ____________ [offeror insert

Schedule line item number] in the Schedule are, except for modifications required by the contract

specifications, supplies for which it has an established price. The term "established price" means a

price that (1)is an established catalog or market price for a commercial product sold in substantial

quantities to the general public, and (2)is the net price after applying any standard trade discounts

offered by the Contractor. The Contractor further warrants that, as of the date of this contract, any

difference between the unit prices stated in the contract for these line items and the Contractor’s

established prices for like quantities of the nearest commercial equivalents are due to compliance

with contract specifications and with any contract requirements for preservation, packaging, and

packing beyond standard commercial practice.

(b) The Contractor shall promptly notify the Contracting Officer of the amount and effective date of

each decrease in any applicable established price. Each corresponding contract unit price (exclusive

of any part of the unit price that reflects modifications resulting from compliance with specifications

or with requirements for preservation, packaging, and packing beyond standard commercial

practice) shall be decreased by the same percentage that the established price is decreased. The

decrease shall apply to those items delivered on and after the effective date of the decrease in the

Contractor’s established price, and this contract shall be modified accordingly.

(c) If the Contractor’s applicable established price is increased after the contract date, the

corresponding contract unit price (exclusive of any part of the unit price resulting from compliance

with specifications or with requirements for preservation, packaging, and packing beyond standard

commercial practice) shall be increased, upon the Contractor’s written request to the Contracting

Officer, by the same percentage that the established price is increased, and the contract shall be

modified accordingly, subject to the following limitations:

(1) The aggregate of the increases in any contract unit price under this clause shall not exceed 10

percent of the original contract unit price.

(2) The increased contract unit price shall be effective-

(i) On the effective date of the increase in the applicable established price if the Contracting Officer

receives the Contractor’s written request within 10 days thereafter; or

(ii) If the written request is received later, on the date the Contracting Officer receives the request.

(3) The increased contract unit price shall not apply to quantities scheduled under the contract for

delivery before the effective date of the increased contract unit price, unless failure to deliver before

that date results from causes beyond the control and without the fault or negligence of the

Contractor, within the meaning of the Default clause.

(4) No modification increasing a contract unit price shall be executed under this paragraph (c) until

the Contracting Officer verifies the increase in the applicable established price.
(5) Within 30 days after receipt of the Contractor’s written request, the Contracting Officer may

cancel, without liability to either party, any undelivered portion of the contract items affected by the

requested increase.

(d) During the time allowed for the cancellation provided for in paragraph (c)(5) of this clause, and

thereafter if there is no cancellation, the Contractor shall continue deliveries according to the

contract delivery schedule, and the Government shall pay for such deliveries at the contract unit

price, increased to the extent provided by paragraph (c) of this clause.

(End of clause)

Parent topic: 52.216 [Reserved]