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DSCR

DSCR I84P: ECONOMIC PRICE ADJUSTMENT (EPA) - LEAD - BATTERY CONSIGNMENT PROGRAM

I84P   52.216-9G36   ECONOMIC PRICE ADJUSTMENT     DSCR (MAR 1996) 
AND                  (EPA)_LEAD, BATTERY CONSIGNMENT 
I16F44               PROGRAM


    (a)  The contractor warrants that the prices set forth in this 
contract do not include allowance for any contingency to the extent 
covered by this clause.

    (b)  The contractor further agrees that there will be no price 
adjustment as provided by this clause for any additional costs 
incurred in the contract unit prices applicable to items purchased 
under this contract during the first 12 month contract period, nor 
prior to the effective date of a contract modification effecting 
such an adjustment.

    (c)  For the purpose of computing adjustments pursuant to this 
clause, the cost factor/unit price subject to adjustment (UPSA) 
shall be calculated as shown in the following Table A - Calculation 
of Base Lead Price.  Table A is a detail of the calculation used to 
determine the UPSA and will be completed by the contracting officer, 
based on the American Metal Market Monthly Average Price for the 
most recent month available at the time of award, and the Government 
estimate of the number of pounds of lead required for each battery.

    (d)  The calculation required for adjustment of the contract 
item unit prices shall be calculated for each applicable contract 
option period as shown in the following Table B - Adjustment 
Calculation.  Table B will be completed by the contractor as shown 
in the Table B examples, also included in this clause, and will be 
submitted to the contracting officer not more than 60 days nor less 
than 30 days prior to the end of the current contract period.
Any price adjustment will be incorporated by a contract 
modification which shall reflect the revised contract unit prices 
(Section B).  The contracting officer may unilaterally determine 
the applicable price adjustment if the data requested of the 
contractor by Table B is not timely submitted.
    (e)  If the contracting officer determines that the prices in 
the American Metal 
Products, Metals Price Averages as used in Table A and Table B of 
this clause consistently and substantially fail to reflect market 
conditions, the contracting officer may amend the contract to specify 
use of an appropriate substitute effective on the date 
the source of prices specified in the contract begins to 
consistently and substantially fail to reflect market 
conditions.

    (f)  Adjustment in the contract price due to fluctuations in 
lead prices shall be made as shown in Table B based on the 
applicable first published final prices for the 10th month of 
the previous contract year in the American Metal Market, Metals Price 
Averages, monthly, U.S. Primary Producers Published Price Common 
and Corroding and U.S. Secondary for Fabricated Products; 65% of 
the lead price will be based on the Secondary Category and 35% 
will be based on the Primary Category.  For the purposes of 
this clause only, the first month will be the month in which the 
first effective day of the contract period falls.  Consequently, 
if award is made on 15 January, the tenth month will be October even 
though only approximately 9.5 months of the term of the contract 
period will have elapsed at the end of October.

         (1)  The "Unit Price Subject to Adjustment (UPSA)" for all 
adjustments as provided herein shall be the Estimated Unit Lead 
Price Per Battery as calculated under Table A and included in Table 
B, Column (3), at the time of award.  The UPSA calculated at the 
time of award shall remain fixed throughout the life of the 
contract, including option periods exercised under the contract, and 
shall not be affected by any adjustment under this clause.

         (2)  When the Total Adjusted Lead Price (Table B, Column 8)
 is within the adjustment band (Table B, Column (4-5)), no adjustment 
will be made.

         (3)  When the Total Adjusted Lead Price (Table B, Column 8) 
is greater than the upper projected price in Table B, Column (4) or 
less than the lower projected price in Table B, Column (5), the 
difference from the prices in Table B, Column (4) or (5) shall 
be set forth in Table B, Column (10), Price Adjustment Amount.

         (4)  This difference, whether positive or negative, shall 
be the Price Adjustment Amount used to adjust the basic contract 
unit price, and the resulting adjusted contract unit price shall 
be set forth in Column (11).

         (5)  This adjusted contract unit price, as provided and 
limited by this clause provision, will be the revised contract item 
unit price reflected in a contract modification (Section B) and 
shall be applied to all quantities purchased during the next 12 
months contract period/option year, when appropriate.

         (6)  The aggregate of the increases in UPSA (Table B, 
Column (10)) under this clause shall not exceed 60% of the original 
UPSA.  There is no limitation on the amount of decreases that may be 
made under this clause.

         (7)  The adjusted contract unit price shown in Table B, 
Column (11) shall be the basis for adjusting the estimated total 
contract price.

    (g)  In the event the source of price information cited 
herein is discontinued or substantially altered, the parties shall 
mutually agree upon an appropriate substitute to be effective as 
of the date of the index discontinuance or alteration.  Failure to 
reach an agreement shall be subject to the "Disputes" clause of the 
contract.

    (h)  The contracting officer shall complete the following Table A - 
Calculation of Base Lead Price, as well as Columns (1) (2) (3) (4) 
(5) for Table B - Adjustment Calculation, at the time of award.
Following is a description of each column in Table B:Column 
(1)  - is the beginning and ending date for each adjustment 
calculation period.

Column (2)  - is the Government's estimated lead content (in pounds) 
for each of the               three batteries included in the contract, 
which shall be used for all computations and adjustments pursuant to 
this clause.

Column (3)  - is the UPSA (calculated in Table A).
Column (4)
   and (5)  - show the upper and lower values of the adjustment 
band.

Column (6)
   and (7)  - contain the price of lead for each battery based on 
the index (two are used, Column (6) is primary and Column (7) is 
secondary) as of the time of adjustment and are determined at the 
time of each adjustment calculation; the monthly average from the 
tenth month of the preceding contract year shall be used to complete 
this column.

Column (8)  - is the sum of the amounts in Columns (6) and (7).  It is 
the price of the lead contained in each battery at the time of adjustment 
based on the Government estimated pounds and the American Metal Market 
Monthly Average Price.

Column (9)  - completion required comparison of Column (8) to 
Columns (4) and (5).  If the amount in Column (8) is between these 
two amounts, no adjustment will be made.  If the amount in Column 
(8) falls outside the range, the unit price for the next contract 
year will be adjusted.

Column (10) - is the amount by which the basic contract unit price 
of each battery should be adjusted (the difference between Columns 
(4) or (5) and Column (8)).

Column (11) - is the basic contract unit price plus (or minus) the 
Price Adjustment (Column 10), as appropriate.