016-2026_Economic_Relief_Special_Term.pdf
PDF 36 KB Posted
- Attached to
- Bus Replacement Parts
- Solicitation number
- 016-2026IFBL
- Issued by
- Hamilton County, Cleveland City, Ohio
About this file
This is a Special Term Economic Price Adjustment clause document applicable to the Southwest Ohio Regional Transit Authority (SORTA) Bus Replacement Parts contract in Ohio. The clause establishes the mechanism through which the Contractor may request adjustments to unit prices for materials listed in the contract's scope of work when material costs increase during contract performance. The Contractor must provide written notice to the Contracting Officer detailing the cause, effective date, amount of increase, and supporting documentation justifying the adjustment request. Upon receipt of such notice, the Contracting Officer and Contractor shall negotiate a price adjustment to contract unit prices and establish an effective date, with the Contractor continuing performance during this negotiation period.
The price adjustment provisions are subject to specific limitations designed to control cost escalation. Adjustments are limited solely to the effect on unit prices of increases in material rates or prices shown in the contract schedule and exclude supplies or services unaffected by such changes, changes to items not listed in the Schedule, or variations in material quantities used. No upward adjustment applies to deliveries or performance completed before the adjustment effective date unless delay results from causes beyond the Contractor's control. Critically, no adjustment shall exceed 3 percent per unit annually, and the cumulative per-unit increase over the entire contract term cannot exceed 6 percent of the original unit price. The Contracting Officer retains the right to examine the Contractor's books, records, manufacturer notifications, and other supporting documentation to verify the validity of price increase requests.
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Text version
Special Term: Economic Price Adjustment
The Contractor shall notify the Contracting Officer if, at any time during contract performance, the rate of unit prices for material shown in the scope of work increase. The notice shall include the Contractor’s request for an adjustment in the contract unit prices to be negotiated under paragraph (b) of this clause, and shall include, in the form required by the Contracting Officer, supporting data explaining the cause, effective date, and amount of the increase and the amount of the Contractor’s adjustment proposal.
(b) Promptly after the Contracting Officer receives the notice and data under paragraph (a) of this clause, the Contracting Officer and the Contractor shall negotiate a price adjustment in the contract unit prices and its effective date. However, the Contracting Officer may postpone the negotiations until an accumulation of increases and unit prices of items shown in the Schedule results in an adjustment allowable under paragraphs (c)(3) and (4) of this clause. The Contracting Officer shall modify this contract to include the unit price adjustment and its effective date. The Contractor shall continue performance pending agreement on, or determination of, any adjustment and its effective date.
(c) Any price adjustment under this clause is subject to the following limitations:
(1) Any adjustment shall be limited to the effect on unit prices of the increases in the rates or unit prices for material shown in the Schedule. There shall be no adjustment for-
(i) Supplies or services for which the production cost is not affected by such changes;
(ii) Changes in rates or unit prices other than those shown in the Schedule; or
(iii) Changes in the quantities of items or material used from those shown in the Schedule for each item.
(2) No upward adjustment shall apply to supplies or services that are required to be delivered or performed before the effective date of the adjustment, unless the Contractor’s failure to deliver or perform according to the delivery schedule results from causes beyond the Contractor’s control and without its fault or negligence, within the meaning of the Default clause.
(3) There shall be no adjustment for any change in unit prices for items which would result in a per unit change of more than 3 percent per year.
(4) The per unit increases of any contract item unit price made under this clause shall not exceed 6 percent of the original unit price over the term of the contract.
(d) The Contracting Officer may examine the Contractor’s books, records, manufacturer increase notifications and other supporting data relevant to the unit price increase request.
(End of clause)
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