Amendment 0001_FAR Clause 52.216-4.pdf
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- Solicitation number
- N66604-25-R-0330
About this file
This document is Federal Acquisition Regulation (FAR) Clause 52.216-4 for Economic Price Adjustment for Labor and Material, dated January 2017. The clause provides detailed guidelines for how a contractor can request price adjustments during contract performance when labor rates (including fringe benefits) or material unit prices change. Key provisions include:
The contractor must notify the Contracting Officer within 60 days of any labor or material price increases/decreases, providing supporting data and a proposed price adjustment. Price adjustments are subject to several limitations, including: (1) adjustments are limited to actual changes in labor or material costs, (2) no upward adjustments apply to deliveries before the adjustment date, (3) no adjustment will be made for changes less than 3% of the total contract price, and (4) aggregate increases in any contract unit price cannot exceed 10% of the original unit price. The Contracting Officer retains the right to examine the contractor's books and records relevant to labor and material costs for up to 3 years after final contract payment.
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Other files
| File | Type | Posted |
|---|---|---|
| 7.18.25 Update_N6660425R0330_PTF_QA.xlsx | XLSX spreadsheet | |
| 7.17.25 Update_N6660425R0330_PTF_QA.xlsx | XLSX spreadsheet | |
| Amendment 0001_Section L Offeror Instructions.pdf | ||
| Amendment 0001_FAR Clause 52.229-3.pdf | ||
| Amendment 0001_N6660425R0330_PTF_QA.xlsx | XLSX spreadsheet | |
| Amendment 0001_FAR Clause 52.222-42.pdf | ||
| N6660425R0330.pdf | ||
| Attachment 5_Govt Property_Redacted.pdf | ||
| Attachment 7_WD 2015-4089 Rev No. 29 dtd 12232024.pdf | ||
| Attachment 8_Section L.pdf | ||
| Attachment 1_SOW.pdf | ||
| Attachment 4_GFP.pdf | ||
| Attachment 10_NUWCDIVNPT Cost Proposal Spreadsheet.xlsx | XLSX spreadsheet | |
| Exhibit A_CDRLs.pdf | ||
| Attachment 3_List of Approved Key Personnel.docx | DOCX document | |
| Attachment 9_Section M.pdf | ||
| Attachment 2_DD254.pdf | ||
| Attachment 6_PRST.pdf |
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Text version
52.216-4 ECONOMIC PRICE ADJUSTMENT-LABOR AND MATERIAL (JAN 2017)
(a)The Contractor shall notify the Contracting Officer if, at any time during contract performance, the rate of pay for labor (including fringe benefits) or the unit prices for material shown in the Schedule either increase or decrease. The Contractor shall furnish this notice within 60 days after the increase or decrease, or within any additional period that the Contracting Officer may approve in writing, but not later than the date of final payment under this contract. The notice shall include the Contractor’s proposal 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 or decrease 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 decreases in the labor rates (including fringe benefits) and unit prices of material shown in the Schedule results in an adjustment allowable under paragraph (c)(3) of this clause.
The Contracting Officer shall modify this contract (1)to include the price adjustment and its effective date and (2)to revise the labor rates (including fringe benefits) or unit prices of material as shown in the Schedule to reflect the increases or decreases resulting from the adjustment. 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 or decreases in the rates of pay for labor (including fringe benefits) 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 labor 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 rates of pay for labor (including fringe benefits) or unit prices for material which would not result in a net change of at least 3 percent of the then-current total contract price. This limitation shall not apply, however, if, after final delivery of all line items, either party requests an adjustment under paragraph (b) of this clause.
(4)The aggregate of the increases in any contract unit price made under this clause shall not exceed 10 percent of the original unit price. There is no percentage limitation on the amount of decreases that may be made under this clause.
(d)The Contracting Officer may examine the Contractor’s books, records, and other supporting data relevant to the cost of labor (including fringe benefits) and material during all reasonable times until the end of 3 years after the date of final payment under this contract or the time periods specified in subpart 4.7 of the Federal Acquisition Regulation (FAR), whichever is earlier.
(End of clause)
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