Price_Model,_final.xlsx

XLSX spreadsheet 48 KB Posted Aug 19, 2019

Attached to: Next Generation All Aluminum Pallets Federal contract opportunity
Solicitation number: FA8534-19-R-0001
Issued by: Department of the Air Force Materiel Command Lifecycle Management Center Robins Air Force Base

About this file

Written by GovTribe AI · Dec 30, 2023

This document contains a price model and template example for a federal contract opportunity to manufacture next generation aluminum pallets. The price model outlines an 18-month basic period and nine option periods totaling up to 108 months, with quantities ranging from 5 to 15,000 pallets per period. Pricing is proposed using firm-fixed-price and fixed-price-with-economic-price-adjustment contract line item numbers for pallets and non-recurring costs. Proposed unit pricing is broken into price subject to adjustment for aluminum content and price not subject to adjustment for other costs and profit. The template provides an example total evaluated price of $300 million. The related opportunity notice seeks proposals for the manufacturing and production of 463L air cargo pallets to specification MIL-DTL-27443. The Air Force Materiel Command intends to award an indefinite-delivery requirements contract with a period of performance as described in the price model. Offerors must provide five first article test pallets within 12 months of award.

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Price Model

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Other files for this federal contract opportunity

Other files attached to Next Generation All Aluminum Pallets, newest first.
File	Type	Posted
RFP_Release_-_Questions_from_Industry_6Nov19.docx	DOCX document	Nov 6, 2019
RFP_release_-_Questions_from_Industry_15Oct19.docx	DOCX document	Oct 18, 2019
CDRL_A006_Incoming_Inspection_and_Inventory_Report.pdf	PDF	Oct 3, 2019
SectionL.doc	DOC document	Oct 3, 2019
FA853419R0001_______0003.pdf	PDF	Oct 3, 2019
TieDownRingAssembly201993431.STEP	STEP file	Oct 1, 2019
IntermediatePanelExtrusion201993427.STEP	STEP file	Oct 1, 2019
SidePanelExtrusion201993429.STEP	STEP file	Oct 1, 2019
Amended_Drawings_201993426.pdf	PDF	Oct 1, 2019
HuckRivetToolNoseAssembly201993432.STEP	STEP file	Oct 1, 2019
CargoPalletAssembly201993426.STEP	STEP file	Oct 1, 2019
CenterPanelExtrusion201993428.STEP	STEP file	Oct 1, 2019
FA853419R0001_______0002.pdf	PDF	Oct 1, 2019
Amended_MIL-DTL-27443G.pdf	PDF	Oct 1, 2019
EdgeRailExtrusion201993430.STEP	STEP file	Oct 1, 2019
FA853419R0001_______0001.pdf	PDF	Sep 11, 2019
ppi_tool.accdb	MDB file	Sep 4, 2019
Eng_Data_List.pdf	PDF	Aug 23, 2019
Next_Gen_Cargo_Pallet_Replacement_MIL_DTL_27443G.pdf	PDF	Aug 23, 2019
Transportation_DD_Form_1653.pdf	PDF	Aug 23, 2019
Intermediate_Panel_Extrusion_(X201993427).STEP	STEP file	Aug 23, 2019
Edge_Rail_Extrusion_(X201993430).STEP	STEP file	Aug 23, 2019
Side_Panel_Extrusion_(X201993429).STEP	STEP file	Aug 23, 2019
Cargo_Pallet_Assembly_(X201993426).STEP	STEP file	Aug 23, 2019
Packaging_AF_Form_158.pdf	PDF	Aug 23, 2019
Tie-Down_Ring_Assembly_(X201993431).STEP	STEP file	Aug 23, 2019
Section_M_Final.pdf	PDF	Aug 19, 2019
CDRLS_A001_-_A010.pdf	PDF	Aug 19, 2019
SOW_Next_Gen.pdf	PDF	Aug 19, 2019
Next_Gen_Past_Performance_Questionnaire_FINAL.docx	DOCX document	Aug 19, 2019
Q&As_4.pdf	PDF	May 16, 2019
Tie-Down_Ring_Assembly_(X201993431).STEP	STEP file	May 16, 2019
Center_Panel_Extrusion_(X201993428).STEP	STEP file	May 16, 2019
Side_Panel_Extrusion_(X201993429).STEP	STEP file	May 16, 2019
Revised_Drawings.pdf	PDF	Apr 24, 2019
Information_Sign_in_Sheet.pdf	PDF	Mar 22, 2019
Revised_Section_L_Aluminum_Pallet.doc	DOC document	Mar 19, 2019
FA853419R0001.pdf	PDF	Mar 19, 2019
Revised_Section_M_Aluminum_Pallet.doc	DOC document	Mar 19, 2019
QA_Mar_19_final.docx	DOCX document	Mar 8, 2019
Q&As_Feb_19_final.docx	DOCX document	Mar 8, 2019
Draft_-_Next_Gen_Cargo_Pallet_Replacement_MIL_DTL_27443.docx	DOCX document	Mar 8, 2019
Drawings.pdf	PDF	Feb 22, 2019
SectionMAluminum.doc	DOC document	Feb 22, 2019
SectionLAluminum.doc	DOC document	Feb 22, 2019
FA853419R0001.pdf	PDF	Feb 22, 2019
SOWNextGenPallet2018.pdf	PDF	Feb 22, 2019
CargoPalletsCDRLS.pdf	PDF	Feb 22, 2019
CWBSMatrix.docx	DOCX document	Feb 22, 2019
PriceModel.xlsx	XLSX spreadsheet	Feb 22, 2019

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Price Model, 07-24-19

Company Name:	Attachment G
Address:
POC:
Phone Number:
CAGE Code:
Request for Proposal No. FA8534-18-R-0004
Next Generation Pallet

BASIC PERIOD (18 months)

CLIN Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

0001	First Article	FFP	6	EA	$ - 0
0002	F/A Non Recurring Costs	FFP	1	EA	$ - 0

Total for Basic Period $ - 0

Option I (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) * PSA (See Note 1) ** PNSA (See Note 2) Unit Price Evaluated Price

1001	Next Generation Cargo Pallet	FPE	10,000
			Range
			From	To
			1	5,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			5,001	10,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
						10,000			Evaluated CLIN Price	$ - 0

Total for Option I $ - 0

Option II (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

2001	Next Generation Cargo Pallet	FPE	15,000
			Range
			From	To
			1	5,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			5,001	10,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			10,001	15,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
						15,000			Evaluated CLIN Price	$ - 0

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

2004 Accelerated Delivery Schedule FFP 1 EA $ - 0

Total for Option II $ - 0

Option III (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

3001	Next Generation Cargo Pallet	FPE	15,000
			Range
			From	To
			1	5,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			5,001	10,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			10,001	15,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
						15,000			Evaluated CLIN Price	$ - 0

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

3004 Accelerated Delivery Schedule FFP 1 EA $ - 0

Total for Option III $ - 0

Option IV (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

4001	Next Generation Cargo Pallet	FPE	13,000
			Range
			From	To
			1	5,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			5,001	10,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			10,001	13,000	EA	3,000	284.50	$ - 0	$ - 0	$ - 0
						13,000			Evaluated CLIN Price	$ - 0

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

4004 Accelerated Delivery Schedule FFP 1 EA $ - 0

	Total for Option IV	$ - 0
Option V (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

5001	Next Generation Cargo Pallet	FPE	13,000
			Range
			From	To
			1	5,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			5,001	10,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			10,001	13,000	EA	3,000	284.50	$ - 0	$ - 0	$ - 0
						13,000			Evaluated CLIN Price	$ - 0

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

5004 Accelerated Delivery Schedule FFP 1 EA $ - 0

Total for Option V $ - 0

Option VI (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

6001	Next Generation Cargo Pallet	FPE	13,000
			Range
			From	To
			1	5,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			5,001	10,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			10,001	13,000	EA	3,000	284.50	$ - 0	$ - 0	$ - 0
						13,000			Evaluated CLIN Price	$ - 0

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

6004 Accelerated Delivery Schedule FFP 1 EA $ - 0

Total for Option VI $ - 0

Option VII (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

7001	Next Generation Cargo Pallet	FPE	13,000
			Range
			From	To
			1	5,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			5,001	10,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			10,001	13,000	EA	3,000	284.50	$ - 0	$ - 0	$ - 0
						13,000			Evaluated CLIN Price	$ - 0

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

7004 Accelerated Delivery Schedule FFP 1 EA $ - 0

Total for Option VII $ - 0

Option VIII (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

8001	Next Generation Cargo Pallet	FPE	13,000
			Range
			From	To
			1	5,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			5,001	10,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			10,001	13,000	EA	3,000	284.50	$ - 0	$ - 0	$ - 0
						13,000			Evaluated CLIN Price	$ - 0

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

8004 Accelerated Delivery Schedule FFP 1 EA $ - 0

Total for Option VIII $ - 0

Option IX (06 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

9001	Next Generation Cargo Pallet	FPE	13,000
			Range
			From	To
			1	5,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			5,001	10,000	EA	5,000	284.50	$ - 0	$ - 0	$ - 0
			10,001	13,000	EA	3,000	284.50	$ - 0	$ - 0	$ - 0
						13,000			Evaluated CLIN Price	$ - 0

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

9004 Accelerated Delivery Schedule FFP 1 EA $ - 0

Total for Option IX	$ - 0
Total Evaluated Price	$ - 0

* Price Subject to Adjustment (Aluminum $ contained within unit price)

NOTE 1: Per FAR 16.203-4 (c)(4)(ii), when adjustments are made, they shall not include indirect cost or profit.

** Price Not Subject to Adjustment

NOTE 2: Includes all remaining unit costs and profit not proposed under the PSA.

TEP Example, 07-24-19 BASIC PERIOD (18 months)

CLIN Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

0001	First Article	FFP	6	EA	$ 2,000.00	$ 12,000.00
0002	F/A Non Recurring Costs	FFP	1	EA	$ 1,000.00	$ 1,000.00

Total for Basic Period $ 13,000.00

Option I (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) * PSA (See Note 1) ** PNSA (See Note 2) Unit Price Evaluated Price

1001	Next Generation Cargo Pallet	FPE	10,000
			Range
			From	To
			1	5,000	EA	5,000	284.50	$ 20.00	$ 5,690.00	$ 1,800.00	$ 7,490.00	$ 37,450,000.00
			5,001	10,000	EA	5,000	284.50	$ 20.00	$ 5,690.00	$ 1,800.00	$ 7,490.00	$ 37,450,000.00
						10,000					Evaluated CLIN Price	$ 74,900,000.00

Total for Option I $ 74,900,000.00

Option II (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

2001	Next Generation Cargo Pallet	FPE	15,000
			Range
			From	To
			1	5,000	EA	5,000	284.50	$ 21.00	$ 5,974.50	$ 1,900.00	$ 7,875.00	$ 39,375,000.00
			5,001	10,000	EA	5,000	284.50	$ 21.00	$ 5,974.50	$ 1,900.00	$ 7,875.00	$ 39,375,000.00
			10,001	15,000	EA	5,000	284.50	$ 21.00	$ 5,974.50	$ 1,900.00	$ 7,875.00	$ 39,375,000.00
						15,000					Evaluated CLIN Price	$ 118,125,000.00

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

2004 Accelerated Delivery Schedule FFP 1 EA $ 1,000.00 $ 1,000.00

Total for Option II $ 118,126,000.00

Option III (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

3001 Next Generation Cargo Pallet FPE Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc.

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

3004 Accelerated Delivery Schedule FFP Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc.

Total for Option III Etc.

Option IV (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

4001 Next Generation Cargo Pallet FPE Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc.

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

4004 Accelerated Delivery Schedule FFP Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc.

	Total for Option IV	Etc.
Option V (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

5001 Next Generation Cargo Pallet FPE Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc.

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

5004 Accelerated Delivery Schedule FFP Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc.

Total for Option V Etc.

Option VI (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

6001 Next Generation Cargo Pallet FPE Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc.

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

6004 Accelerated Delivery Schedule FFP Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc.

Total for Option VI Etc.

Option VII (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

7001 Next Generation Cargo Pallet FPE Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc.

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

7004 Accelerated Delivery Schedule FFP Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc.

Total for Option VII Etc.

Option VIII (12 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

8001 Next Generation Cargo Pallet FPE Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc.

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

8004 Accelerated Delivery Schedule FFP Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc. Etc.

Total for Option VIII Etc.

Option IX (06 months)

CLIN Description CLIN Type BEQ Unit/Issue Evaluated Qty Aluminum (Lbs) $/Lb. (Aluminum) PSA PNSA Unit Price Evaluated Price

9001	Next Generation Cargo Pallet	FPE	13,000
			Range
			From	To
			1	5,000	EA	5,000	284.50	$ 22.00	$ 6,259.00	$ 2,000.00	$ 8,259.00	$ 41,295,000.00
			5,001	10,000	EA	5,000	284.50	$ 22.00	$ 6,259.00	$ 2,000.00	$ 8,259.00	$ 41,295,000.00
			10,001	13,000	EA	3,000	284.50	$ 22.00	$ 6,259.00	$ 2,000.00	$ 8,259.00	$ 24,777,000.00
						13,000					Evaluated CLIN Price	$ 107,367,000.00

Description CLIN Type Quantity Unit/Issue Unit Price Evaluated Price

9004 Accelerated Delivery Schedule FFP 1 EA $ 1,100.00 $ 1,100.00

Total for Option IX	$ 107,368,100.00
Total Evaluated Price	$ 300,407,100.00

* Price Subject to Adjustment (Aluminum $ contained within unit price)

NOTE 1: Per FAR 16.203-4 (c)(4)(ii), when adjustments are made, they shall not include indirect cost or profit.

** Price Not Subject to Adjustment

NOTE 2: Includes all remaining unit costs and profit not proposed under the PSA.

EPA example, 07-24-19

Example of EPA Increase
Step 1: PCO identifies baseline costs in the basic contract.
Contract Schedule
	U/I	Price Subject to Adjustment (PSA) (Note 1)			Price Not Subject to Adjustment (PNSA) (Note 2)	Total Unit Price
Structural Product Material (Identified Below)		QTY (Pounds)	Price	Total
Aluminum	Pounds	1000	$ 10.00	$ 10,000.00
Unit Price	EA			$ 10,000.00	$ 20,000.00	$ 30,000.00

Step 2: PCO reviews new costs in contractor's submitted proposal adjustment (PA).
PA submitted by Contractor
	U/I	Contractor's Proposed Adjustment to PSA (Note 1)			Price Not Subject to Adjustment (Note 2)	Adjusted Unit Price
Structural Product Material (Identified Below)		QTY (Pounds)	Price	Total
Aluminum	Pounds	1000	$ 11.00	$ 11,000.00
Unit Price	EA			$ 11,000.00	$ 20,000.00	$ 31,000.00

NOTE 1: Per FAR 16.203-4 (c)(4)(ii), when adjustments are made, they shall not include

indirect cost or profit.

NOTE 2: Includes all remaining unit costs and profit not proposed under the PSA.

Step 3: PCO determines if any adjustments are applicable.
Adjustment calculation 1
A =	$ 11,000.00
U =	$ 10,000.00
Δ =	($11,000 - $10,000)/$10,000 OR:
	10.00%

10.00% is ≥ 5.00%; therefore, PA is considered.

Adjustment calculation 2
Proposed Adjusted Total Unit Price		$ 31,000.00
	divided by
Initial Proposed Total Unit Price		$ 30,000.00
	=	103.33%

The proposed adjusted total unit price is no more than 10.00% higher than the initial proposed total

unit price. An EPA is applicable.

Step 4: Contractor's submitted PA meets the requirements for a price increase. A modification to the delivery order is issued for the adjusted unit price of $31,000 shown in Step 2.

Example of EPA Increase capped at 10%
Step 1: PCO identifies baseline costs in the basic contract.
Contract Schedule
	U/I	Price Subject to Adjustment (Note 1)			Price Not Subject to Adjustment (Note 2)	Total Unit Price
Structural Product Material (Identified Below)		QTY (Pounds)	Price	Total
Aluminum	Pounds	1000	$ 10.00	$ 10,000.00
Unit Price	EA			$ 10,000.00	$ 20,000.00	$ 30,000.00

Step 2: PCO reviews new costs in contractor's submitted proposal adjustment.
PA submitted by Contractor
	U/I	Contractor's Proposed Adjustment to PSA (Note 1)			Price Not Subject to Adjustment (Note 2)	Adjusted Unit Price
Structural Product Material (Identified Below)		QTY (Pounds)	Price	Total
Aluminum	Pounds	1000	$ 15.00	$ 15,000.00
Unit Price	EA			$ 15,000.00	$ 20,000.00	$ 35,000.00

NOTE 1: Per FAR 16.203-4 (c)(4)(ii), when adjustments are made, they shall not include

indirect cost or profit.

NOTE 2: Includes all remaining unit costs and profit not proposed under the PSA.

Step 3: PCO determines if any adjustments are applicable.
Adjustment calculation 1
A =	$ 15,000.00
U =	$ 10,000.00
Δ =	($15,000 - $10,000)/$10,000 OR:
	50.00%

50.00% is ≥ 5.00%; therefore, PA is considered.

Adjustment calculation 2
Proposed Adjusted Total Unit Price		$ 35,000.00
	divided by
Initial Proposed Total Unit Price		$ 30,000.00
	=	116.67%

The proposed adjusted total unit price is more than 10.00% higher than the initial proposed total unit

price. An EPA is applicable, but per FAR 52.216-4(c)(4), the increase will be capped at 10.00% higher than

the initial proposed total unit price.

Adjustment calculation 3 (capped at 10.00%)
Initial Proposed Total Unit Price		$ 30,000.00
	multiplied by	110.00%
	=
Adjusted Total Unit Price w/10.00% cap		$ 33,000.00

Step 4: Contractor's submitted PA meets the requirements for a price increase. The increase is capped at 10.00% higher than the initial proposed total unit price. A modification to the delivery order is issued for the adjusted unit price of $33,000 shown in Adjustment calculation 3.

Example of EPA Decrease
Step 1: PCO identifies baseline costs in the basic contract.
Contract Schedule
	U/I	Price Subject to Adjustment (Note 1)			Price Not Subject to Adjustment (Note 2)	Total Unit Price
Structural Product Material (Identified Below)		QTY (Pounds)	Price	Total
Aluminum	Pounds	1000	$ 10.00	$ 10,000.00
Unit Price	EA			$ 10,000.00	$ 20,000.00	$ 30,000.00

Step 2: PCO reviews new costs in contractor's submitted proposal adjustment.
PA submitted by Contractor
	U/I	Contractor's Proposed Adjustment to PSA (Note 1)			Price Not Subject to Adjustment (Note 2)	Adjusted Unit Price
Structural Product Material (Identified Below)		QTY (Pounds)	Price	Total
Aluminum	Pounds	1000	$ 9.50	$ 9,500.00
Unit Price	EA			$ 9,500.00	$ 20,000.00	$ 29,500.00

NOTE 1: Per FAR 16.203-4 (c)(4)(ii), when adjustments are made, they shall not include

indirect cost or profit.

NOTE 2: Includes all remaining unit costs and profit not proposed under the PSA.

Step 3: PCO determines if any adjustments are applicable.
Adjustment calculation 1
A =	$ 9,500.00
U =	$ 10,000.00
Δ =	($9,500 - $10,000)/$10,000 OR:
	-5.00%	(Absolute Value = 5.00%)

5.00% is ≥ 5.00%; therefore, PA is considered.

Adjustment calculation 2
Proposed Adjusted Total Unit Price		$ 29,500.00
	divided by
Initial Proposed Total Unit Price		$ 30,000.00
	=	98.33%

The proposed adjusted total unit price is less than the initial proposed total unit price; an EPA is

applicable. Per FAR 52.216-4(c)(4), there is no percentage limitation on the amount of decreases that may

be made.

Step 4: Contractor's submitted PA meets the requirements for a price decrease. A modification to the delivery order is issued for the adjusted unit price of $29,500 shown in Step 2.

File details come from the government source that posted it. Updated Dec 30, 2023.