36C78619Q0002-014.pdf

EPA INSTRUCTIONS

• Please Take Note: Equitable Price Adjustment (EPA) as it may apply to Contractor’s Unit Prices for the Option

Periods for Marker, Bronze Niche Marker (5-1/2" x 8-1/2" x 3/8"), Product Code: (Z1) and Bronze Niche Marker, Medal of Honor (5-1/2" x 8-1/2" x 3/8"), Product Code: Z6. EPA is ONLY applicable to the metal materials used to manufacture the bronze. Labor is excluded and does not apply. Requests for EPA that include labor costs will be denied.

• Pricing for option periods concerning separately priced line items found in Section B.2, Price Schedule, shall be determined by an Economic Price Adjustment (EPA) for the Option Periods.

• For the purpose of this acquisition, “Bronze” is defined as an alloy consisting of 89% Copper and 5% Zinc.

Contractor shall provide certification of the analysis of the bronze ingots if used. Therefore, only fluctuations in the prices of those two components will be considered for application of the EPA mechanism described herein. In addition, contract prices historically have consisted of 80% materials and 20% labor, overhead and profit and this ratio will apply to this acquisition.

• The Contractor shall track the market prices of copper and zinc or ingots using the Metal Price Index, US equivalent of the LME- London Metal Exchange (https://lme.com/) and these prices shall form the basis of any contract price adjustments. The Contractor shall, in accordance with the below bullet, submit report increases/decreases in the prices for the independent metals/ingots to the Contracting Officer for the first six months of each Option Period. In addition, the Contractor shall submit certified paid invoices, of the purchased bronze metal used to make the bronze flat marker’s, for the performance period for which an EPA is requested.

Reports and invoices support the Government’s determination of any price adjustment to be effective in the next performance period. Submission of index reports and invoices shall constitute requests for EPA. Failure to submit all required information for any performance period in a timely manner shall constitute waiver of any EPA consideration for the requested performance period. Reports and invoices shall be submitted according to the following schedule:

➢ Not later than the 18th calendar day of March of each Option period

• The Government will unilaterally decrease the contract price for any following semi-annual period when aggregate metal prices fall more than 10% of the current contract price.

• No adjustment shall apply to delivery orders awarded prior to the effective date of the adjustment, regardless of the date of commencement of work thereunder. All adjustments shall be awarded in the following six-month period and will not be retroactive. All adjustments shall be incorporated in the Price Schedule of the next six-month period. Adjustments shall not exceed 10% of the aggregate total of the contract price.

NOTE: Adjustments will be made in accordance with the following equation:

New Price = Awarded Price X 20% + [Then Current Price X 80% +/- (89% X Copper Index change) +/- (5%

X Zinc Index change)].

https://lme.com/