As prescribed at 16.203-4(a)(2)(104), insert the following clause:
ECONOMIC PRICE ADJUSTMENT - MARKET PRICE AND ACTUAL TRANSPORTATION COST - NATURAL GAS - ALASKA JUN 2010
(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 in accordance with the provisions of this clause.
(b) DEFINITIONS. As used in this clause, the term-
(1) Contract unit price is the market price based on a fixed percentage of the ENSTAR Natural Gas Company’s current approved and published Enstar Natural Gas Cost Adjustment tariff rate on file with the Regulatory Commission of Alaska, expressed in dollars per thousand cubic feet (MCF). All other Enstar applicable tariff components (transportation, regulatory fees, company use gas, etc.) will be passed through at cost. Customer service charges and meter fees imposed by ENSTAR Natural Gas Company, as permitted by the tariff, will be considered pass-through utility charges.
(2) Local Distribution Company (LDC) means the local public utility operating in a franchised area without competition that transports gas over its own distribution lines from its interconnection points with an interstate or intrastate pipeline to customers.
(3) Market Price Indicator is the Enstar Natural Gas Cost Adjustment tariff rate on file with the Regulatory Commission of Alaska.
(c) PRICE ADJUSTMENTS. The contract unit price will be changed only as a result of a revision of the Enstar Natural Gas Cost Adjustment tariff rate. If the ENSTAR Natural Gas Cost Adjustment is revised, the fixed percentage stated in the contract schedule page shall be applied to the revised Gas Cost Adjustment to obtain the new contract unit price.
(1) CALCULATIONS. All numbers used in or derived through calculations prescribed by this clause shall be rounded to four decimal places.
(2) UPWARD CEILING ON ECONOMIC PRICE ADJUSTMENTS.
(i) The Contractor agrees that any increase in the contract unit price pursuant to this clause shall not exceed __(Contracting Officer fill-in see Note 1)_percent of the contract unit price effective at time of award. If market conditions warrant, the Government may institute a contract ceiling increase.
(ii) If, at any time, the Contractor has reason to believe that within the near future an increase in the ENSTAR Natural Gas Company’s Adjustment tariff rate would raise the contract unit price above the current ceiling, the Contractor shall notify the Contracting Officer of the expected increase. At the same time, the Contractor shall propose a revised ceiling sufficient to permit completion of remaining contract performance. The Contractor’s proposal shall be supported by appropriate explanations and documentation as required by the Contracting Officer.
(iii) If an actual increase in the market price would raise the contract unit price above the current ceiling, the Contractor shall have no obligation under this contract to fill pending or future orders, as of the effective date of the increase, until the Contracting Officer notifies the Contractor that the ceiling will or will not be raised. In the case where the Contractor receives confirmation that the ceiling will be raised, the Contractor is required to continue performance.
(3) REVISION OF MARKET PRICE INDICATOR. If the applicable market price indicator is discontinued, its method of derivation is altered substantially, or the Contracting Officer determines that the market price indicator consistently and substantially failed to reflect market conditions, the parties shall mutually agree upon an appropriate and comparable substitute and the contract shall be modified to reflect such substitute effective on the date the indicator 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 (NATURAL GAS) clause.
(d) EXAMINATION OF RECORDS. The Contractor agrees that the Contracting Officer or designated representative shall have the right to examine the Contractor’s books, records, documents, and other data the Contracting Officer deems necessary to verify Contractor adherence to the provisions of this clause.
(End of clause)
Note 1: The Contracting Officer is required to fill-in the applicable ceiling in paragraph (c)(2)(i)
