Attachment_1_-_Amendment_0003_-_140P4225B0002__0003.pdf

Amendment 0003 – 140P4225B0002

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Additional Clause – will be incorporated in Section H of the Award

SPECIAL CLAUSE 1 – Economic Price Adjustment – Materials Costs

1. Applicability

This clause applies to firm-fixed-price construction contracts when it is determined that a significant portion of the contract cost is subject to market price fluctuations for designated materials.

2. Definitions

Base Price: The price per unit of material established as of the date of contract award.

Adjustment Period: A specified timeframe (e.g., quarterly) for reviewing and applying potential price adjustments.

Designated Materials: Materials subject to adjustment under this clause. These may include, but are not limited to: steel, aluminum, copper, asphalt, cement, lumber, building materials not otherwise stated and fuel.

3. Price Adjustment Conditions

• The contract price shall be adjusted (upward or downward) to reflect documented increases or decreases in the cost of designated materials, subject to the following:

o Adjustments will only apply if the change in unit price exceeds ±10% from the Base

Price.

• Price changes must be supported by published indices (e.g., commodity indexes, Consumer Price

Index, etc.) or supplier invoices.

• Adjustments apply only to quantities not yet delivered or installed.

• Contractor must keep and retain dated documentation (e.g. quotes/proposals from suppliers, distributors, etc.) that precede date of original proposal that was used in the development of their original proposal used for award of contract that can be used in support of 5) below.

4. Calculation Method

• Adjustment Amount = (Actual Price – Base Price) × Quantity Required, that have not been delivered.

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• If there is a price change, and part of the delivery was received/installed prior to any proposed price change, but the remaining amount was delivered after the price change, the Adjustment

Amount = (Actual Price – Base Price) x (Quantity Required – Quantity Delivered prior to Price

Change).

• Actual Price is determined using an agreed-upon index or invoice dated within the adjustment period.

• No markup for overhead or profit shall be applied to adjustment amounts unless specifically allowed elsewhere in the contract.

5. Notification and Documentation

• The Contractor must:

o Submit a written request for adjustment within 30 calendar days after the end of the adjustment period.

o Provide sufficient documentation (e.g., original invoices, current invoices, supplier letters, index data) to support the claimed price change.

o Failure to provide timely or adequate documentation may result in denial of the adjustment and not subject to future claims under FAR 52.233-1 – Disputes.

6. Government Review and Approval

• The Contracting Officer will verify the accuracy and applicability of the adjustment request.

• Approved adjustments shall be incorporated via a unilateral or bilateral contract modification.

7. Exclusions

This clause does not apply to:

• Labor cost fluctuations.

• Equipment rental or usage charges.

• Delay costs or schedule impacts resulting from material shortages (unless otherwise provided).

• Differing Site Conditions under FAR 52.236-2

• Changes applicable to any other Changes Clause included in Contract as prescribed

• Errors, omissions, conclusions, interpretations in original proposal under FAR 52.236-3 – Site

Investigation and Conditions Affecting the Work

8. Final Adjustments

• Adjustments under this clause constitute the Contractor’s sole remedy for material cost changes during the contract period. No further equitable adjustment or claim shall be entertained under other clauses (e.g., Changes, Differing Site Conditions) for the same cost elements.