FFP w Equitable Adj Clarification SAM.gov.docx
DOCX document 15 KB Posted
- Attached to
- Propane Service
- Solicitation number
- FA489726QC024
About this file
This document is a clarification letter regarding the contract pricing structure and evaluation methodology for a propane delivery services solicitation at Mountain Home Air Force Base (MHAFB) in Idaho. The document addresses the implementation of FAR clause 52.216-2 (Firm-Fixed-Price with Economic Price Adjustment) following Amendment #1, which changed the contract type from Firm Fixed Price to Firm Fixed Price with Economic Price Adjustment, effective March 4, 2026.
Contractors must submit a firm-fixed price quotation for propane delivery services that encompasses the total cost, including the wholesale propane price and any desired markup. This initial quoted price serves as the basis for bid evaluation and contract award determination, per evaluation criteria specified in the solicitation. Upon contract award, an equitable adjustment mechanism becomes effective whereby contractors must notify the government of any wholesale propane price fluctuations to permit corresponding contract adjustments. Critically, price adjustments resulting from propane market volatility are capped at a maximum of 10 percent increase or decrease from the original awarded contract amount. The clarification emphasizes the importance of understanding this pricing ceiling to ensure compliance with the adjusted contract terms.
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Other files
| File | Type | Posted |
|---|---|---|
| RFQ COMBO- FA489726QC024.pdf | ||
| PWS-Propane Delivery- 2026.pdf | ||
| RFQ COMBO- FA489726QC024.pdf | ||
| PWS-Propane Delivery- 14 Jan 2026.pdf | ||
| SCA Wage Determination REV 27.txt | TXT text file |
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Text version
Subject: Clarification Regarding the Firm-Fixed-Price with Equitable Adjustment The purpose of this attachment is to provide clarity on the firm-fixed price with equitable adjustment contract and will address how clause 52.216-2 is to be interpreted and applied.
Bids will be evaluated using the criteria found on the Combo/Solicitation and clause 52.212-2.
Contractors are required to quote a firm-fixed price for propane delivery services. This price should reflect your total cost, including the wholesale price of propane and any markup you deem necessary. This submitted price will be the basis for our evaluation and for the contract award.
After the contract is awarded, the equitable adjustment clause comes into effect. If at any point the wholesale propane price increases or decreases, the contractor is required to notify the government so the contract can be adjusted accordingly. However, it is critical to understand that the awarded firm-fixed price cannot be increased or decreased greater than 10% of the original award amount.
File details come from the government source that posted it. Updated .