252.216-7000 Economic Price

Adjustment—Basic Steel, Aluminum, Brass,

Bronze, or Copper Mill Products.

As prescribed in 216.203-4 -70(a)(1), use the following clause:

ECONOMIC PRICE ADJUSTMENT—BASIC STEEL, ALUMINUM, BRASS, BRONZE, OR COPPER

MILL PRODUCTS (JAN 2023)

(a) Definitions. As used in this clause—

“Established price” means a price which is an established catalog or market price for a commercial

product sold in substantial quantities to the general public.

“Unit price” excludes any part of the price which reflects requirements for preservation, packaging,

and packing beyond standard commercial practice.

(b) As represented by the Contractor in its offer, the unit price stated for

____________________(Identify the item) is not in excess of the Contractor's established price in effect

on the date set for opening of bids (or the contract date if this is a negotiated contract) for like

quantities of the same item. This price is the net price after applying any applicable standard trade

discounts offered by the Contractor from its catalog, list, or schedule price.

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

each decrease in any established price.

(1) Each corresponding contract unit price shall be decreased by the same percentage that the

established price is decreased.

(2) This decrease shall apply to items delivered on or after the effective date of the decrease in the

Contractor's established price.

(3) This contract shall be modified accordingly.

(d) If the Contractor's established price is increased after the date set for opening of bids (or the

contract date if this is a negotiated contract), upon the Contractor's written request to the

Contracting Officer, the corresponding contract unit price shall be increased by the same

percentage that the established price is increased, and this contract shall be modified accordingly,

provided—

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

percent of the original contract unit price;

(2) The increased contract unit price shall be effective on the effective date of the increase in the

applicable established price if the Contractor's written request is received by the Contracting Officer

within ten days of the change. If it is not, the effective date of the increased unit price shall be the

date of receipt of the request by the Contracting Officer; and

(3) The increased contract unit price shall not apply to quantities scheduled for delivery before the
effective date of the increased contract unit price unless the Contractor's 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 of this contract.

(4) The Contracting Officer shall not execute a modification incorporating an increase in a contract

unit price under this clause until the increase is verified.

(e) Within 30 days after receipt of the Contractor's written request, the Contracting Officer may

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

increase and not delivered at the time of such cancellation, except as follows—

(1) The Contractor may, after that time, deliver any items that were completed or in the process of

manufacture at the time of receipt of the cancellation notice, provided the Contractor notifies the

Contracting Officer of such items within 10 days after the Contractor receives the cancellation

notice.

(2) The Government shall pay for those items at the contract unit price increased to the extent

provided by paragraph (d) of this clause.

(3) Any standard steel supply item shall be deemed to be in the process of manufacture when the

steel for that item is in the state of processing after the beginning of the furnace melt.

(f) Pending any cancellation of this contract under paragraph (e) of this clause, or if there is no

cancellation, the Contractor shall continue deliveries according to the delivery schedule of the

contract. The Contractor shall be paid for those deliveries at the contract unit price increased to the

extent provided by paragraph (d) of this clause.

(End of clause)

Parent topic: 252.216 RESERVED