Market Research Survey DRAFT.xlsx
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- Attached to
- Satin Cloth Federal contract opportunity
- Solicitation number
- SPE1C124R0007
About this file
This document is a Market Research Survey for the procurement of Satin Cloth, NSN 8305-01-035-1058, PGC 11311. The survey is being conducted by the Defense Logistics Agency (DLA) Troop Support Clothing and Textiles division to gather information from industry on their capabilities and pricing for this item.
The key details are:
- DLA is seeking information on a 4-year Indefinite Quantity Contract with 1-year tier pricing for annual estimated quantities between 35,971 to 179,852 units.
- The cloth must meet the requirements of MIL-C-24576A and be either red or black in color.
- DLA is requesting information on the respondent's company, manufacturing/dealer capabilities, production rates, lead times, and pricing for each tier.
- A Product Demonstration Model may be required with the proposal submission.
- DLA anticipates a 30-day solicitation window, but is open to feedback on whether that timeline is sufficient.
- This is a market research survey, not a request for proposal at this time.
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Other files for this federal contract opportunity
| File | Type | Posted |
|---|---|---|
| Satin Glass Detail Spec DRAFT.pdf |
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Text version
Market Survey This is a MARKET RESEARCH SURVEY, NOT A REQUEST FOR A BID/PROPOSAL.
| Item: Cloth, Satin, PGC 11311, NSN: 8305-01-035-1058 | ||||||
| The quantities are for a four (4) year ordering period. Within the 4 years ordering period, there are four 12-month (one-year) tier periods: | ||||||
| The Cloth, Satin are procured in accordance with MIL-C-24576A (SH) dated 27 July 1987 and Amendment 1 dated 13 January 1988. | ||||||
| Deliveries will be made to VSGX Arizona Industries for the Blind (515 N 51st Ave Ste 130 Phoenix, Arizona 85043-2711) | ||||||
| Tier Period | Contract Guaranteed Minimum Quantity | Annual Estimated Quantity | Contract Maximum Quantity | Please provide the Estimated Unit Price | ||
| Tier 1 - Year 1 | 35,971 | 51,326 | 179,852 | |||
| Tier 2 - Year 2 | 30,852 | |||||
| Tier 3 - Year 3 | 30,852 | |||||
| Tier 4 - Year 4 | 30,852 | |||||
| Total | 35,971 | 143,882 | 179,852 | |||
| Please provide information or answer here: | ||||||
| Company Name: | ||||||
| Point of Contract (POC): | ||||||
| POC's email address and phone number: | ||||||
| Business Size: | ||||||
| Business Type (Small Business/Larege/Hubzone/SDVOSB etc...): | ||||||
| Number of Employees: | ||||||
| Are you manufacturer or dealer? | ||||||
| Place of Peformance/Offering product of manufacturer or dealer: | ||||||
| Business Type of manufacturer (Small Business/Larege/Hubzone/SDVOSB etc...) | ||||||
| Is the item(s) commercial or modified commercial in accordance with Federal Acquisition Regulation (FAR) 2.101? | ||||||
| Are you aware of a commercial item available in the market place that you could manufacture with minor modification to meet government requirements and Berry Compliance? | ||||||
| Do you have experience with long term contract? | ||||||
| Do you have experience with Government Contracting? | ||||||
| The Government reserves the right to order any combination of the above stated items for Maximum Quantity of 179,852 units during the 4 year ordering period. |
| If you are a manufacturer, what is the monthly production rate for these item(s)? |
| What is the minimum monthly production quantity required to be economically producible |
| What is the maximum monthly production quantity without incurring additional costs |
| The Government may award in multiple lots. Please advise what you recommend as size of each lot based on economic quantities, capacity and other considerations. Please provide your monthly production rate/quantity. |
| Proposed Production Lead Time is 159 days for the first delivery order & 90 days, but may vary for subsequent delivery order. Will you be able to meet the proposed production lead-time? |
| What is your preferred contract length; (number of one-year Tier terms)? 1, 2, 3, or 4 Tiers? |
| The Government anticipates an annual demand quantity . Can you provide a “ballpark” price |
| What is the material/labor ratio (as it is related to costs) for manufacturing this item |
| Is there any major Cost Drivers |
| Is material pricing stable? If no, provide material and evidence of volatility. |
| Are there issues with material availability? Are there issues with domestic availability? |
| Would you like the Material Cost Economic Price Adjustment -Department of Labor Index 2023 (Please see attached Local Procurement Note DTS01). |
| If yes, indicate the index/indices to be considered for the EPA clause and the percentage of the item cost that is material-related that the PPI will apply to: | Index % of item cost | |
| Please provide estimated price for each Tier. | ||
| Product Demonstration Model (PDM) with proposal submission. With the Time to Award initiative, Request for Proposals MUST NOT be solicited for more than 30 days. Is 30 days a sufficient amount of time for you to submit a proposal? If not, how many days would be required for you to prepare your submission? |
| NOTE: This is a MARKET RESEARCH SURVEY, NOT A REQUEST FOR A BID/PROPOSAL. |
| The DLA Troop Support is conducting market research on the above item(s) to determine an acquisition strategy that will enhance our support of military customers worldwide as well as to determine what your industry will be capable of providing with respect to the required item. For this reason, DLA Troop Support would appreciate your firm sharing your expertise and insight into how these items can be most efficiently procured. |
| DLA Troop Support anticipates issuing a solicitation for the referenced item(s) under an Indefinite Quantity Contract with more than one-year Tier pricing. |
| It should be noted that this inquiry, in no way, should be interpreted as a solicitation for offers. No information provided in response to this inquiry will be considered binding between the vendor and the Government. With these facts in mind, it is requested that you review the item(s) listed above and answer the questions on the attached pages. The answers you provide will remain confidential. Please return this survey to Jonathan C Smith via email: jonathan.c.smith@dla.mil |
Tech Data
| CLOTH, SATIN |
| . |
| RA001: THIS DOCUMENT INCORPORATES TECHNICAL AND/OR QUALITY REQUIREMENTS (IDENTIFIED BY AN 'R' OR AN 'I' NUMBER) SET FORTH IN FULL TEXT IN THE DLA MASTER LIST OF TECHNICAL AND QUALITY REQUIREMENTS FOUND ON THE WEB AT: |
http://www.dla.mil/HQ/Acquisition/Offers/eProcurement.aspx
FOR SIMPLIFIED ACQUISITIONS, THE REVISION OF THE MASTER IN EFFECT ON THE SOLICITATION ISSUE DATE OR THE AWARD DATE CONTROLS. FOR LARGE ACQUISITIONS, THE REVISION OF THE MASTER IN EFFECT ON THE RFP ISSUE DATE APPLIES UNLESS A SOLICITATION AMENDMENT INCORPORATES A FOLLOW-ON REVISION, IN WHICH CASE THE AMENDMENT DATE CONTROLS.
RP001: DLA PACKAGING REQUIREMENTS FOR PROCUREMENT
RQ011: REMOVAL OF GOVERNMENT IDENTIFICATION FROM NON-ACCEPTED SUPPLIES
| INDIVIDUAL NSN DATA | |
| . | |
| NSN 8315-01-035-1058, PGC11311 | |
| . | |
| ITEM NAME: | CLOTH, SATIN |
| PART NUMBER: | MIL-C-24576 |
| CAGE CODE: | 81349 |
| . | |
| This is a critical application item (CAI). | |
| . | |
| Shall be in accordance with (IAW) Military Specification | |
| MIL-C-24576A (SH), CLOTH, SILICA GLASS; CLOTH, COATED, GLASS, SILICONE RUBBER COATED dated 27 July 1987 and Amendment 1 dated 13 January 1988. | |
| . | |
| ADDITIONAL INFORMATION FOR MIL-C-24576A: | |
| . | |
| THE CLOTH SHALL BE MADE IN ACCORDANCE | |
| WITH MIL-C-24576A, DATED 27 JULY 1987 AND | |
| AM. NO. 1, DATED 13 JAN 1988. | |
| . | |
| CHANGES TO AMENDMENT #1: | |
| 3.7.1.1, DELETE IN ITS ENTIRETY | |
| 3.7.2.1, DELETE IN ITS ENTIRETY. | |
| INTERIM SPECIFICATION CHANGES TO MIL-C-24576A | |
| PAGE 4 | |
| FOR TYPE I CLOTH ONLY THE FOLLOWING APPLIES | |
| TABLE I, UNDER CLASS I, DELETE "94.0" AND | |
| SUBSTITUTE "96". TABLE I, UNDER CLASS 2, | |
| DELETE 94.0 AND SUBSTITUTE "96". | |
| TABLE I, LINE 3, AFTER "SILICA CONTENT, PERCENT" | |
| ADD "2/". LINE 10, AFTER "31-39" AND "17-21" | |
| ADD "2/". ADD NEW FOOTNOTE: "2/ CONTRACTOR IS | |
| NOT REQUIRED TO MEET THIS REQUIREMENT WHEN A | |
| CONTINUOUS PROCESS IS USED TO COAT THE UNCOATED | |
| OR UNTREATED TYPE I, CLASS 1 AND CLASS 2 | |
| CLOTHS.". | |
| PAGE 5 | |
| TABLE II, ADD NEW REQUIREMENT: "SILICA CONTENT, | |
| PERCENT 2/; 96.0 MIN; 96.0 MIN;---". | |
| LINE 5, UNDER "COLOR" PROPERTY FOR THE TYPE III | |
| CLOTH DELETE"RED/BLACK" AND SUBSTITUTE "BLACK" | |
| ADD NEW FOOTNOTE: "2/CONTRACTOR IS NOT REQUIRED | |
| TO MEET THIS REQUIREMENT WHEN A CONTINUOUS | |
| PROCESS IS USED TO COAT THE TYPE I, CLASS 1 AND | |
| CLASS 2 CLOTHS.". | |
| . | |
| 3.5, DELETE AND SUBSTITUTE"3.5 LENGTH. THE CLOTH | |
| SHALL BE PROVIDED IN ROLLS OF 25 YARDS MAXIMUM | |
| IN LENGTH. ROLLS SHALL CONTAIN NOT MORE THAN | |
| TWO PIECES, AND NO INDIVIDUAL PIECE SHALL BE | |
| LESS THAN 6 YARDS" | |
| 3.6 DELETE AND SUBSTITUTE: "3.6 | |
| NONCOMBUSTIBILITY. THE TYPE I AND III CLOTHS | |
| SHALL BE CERTIFIED AS SPECIFIED IN 3.7.1.1 | |
| AND 3.7.2.1 (SEE 4.7)." | |
| . | |
| 3.7.1.1 DELETE AND SUBSTITUTE: " 3.7.1.1 COLOR | |
| OF TYPE I. WHEN SPECIFIED (SEE 6.2.1) CLASS 1 | |
| AND 2 CLOTH SHALL BE RED OR BLACK. OTHERWISE | |
| THE COLOR OF TYPE I TREATMENT SHALL BE NATURAL | |
| WITH NO ADDED PIGMENTATION. THE COLORING | |
| SHALL RETAIN ITS PERMAENCE DURING NORMAL | |
| HANDELING, AND SHALL BE NON-TOXIC, FLAME | |
| RESISTANT AND NONCOMBUSTIBLE AS SPECIFIED | |
| IN 3.6 (SEE 6.1.3) | |
| PAGE 6, 3.7.1 DELETE AND SUBSTITUTE: "3.7.1 | |
| COLOR OF TYPE III. THE TYPE III CLOTH SHALL BE | |
| BLACK (SEE 6.2.1) THE COLORING SHALL RETAIN ITS | |
| PERMANENCE DURING NORMAL HANDLING. THE | |
| COLORING AGENT SHALL BE NON TOXIC, FLAME | |
| RESISTANT, AND NONCOMBUSTIBLE AS SPECIFIED | |
| IN 3.6 (SEE 6.1.3." | |
| PAGE 6, PARAGRAPH 3.9, LINE 2, DELETE "SHEET" | |
| AND SUBSTITUTE "ROLL"; LINE 3 - AFTER "(A)" | |
| DELETE "NON-ASBESTOS" AND SUBSTITUTE "ASBESTOS- | |
| FREE"; LINE 8, DELETE "ON EVERY SQUARE FOOT, OR | |
| LESS," AND SUBSTITUTE "AT LEAST EVERY YARD". | |
| PAGE 8 | |
| PARA. 4.4.4.2 YARD-BY-YD EXAMINATION LINE 9 | |
| DELETE "2.5" AND SUBSTITUTE "1.5", DELETE "6.5" | |
| AND SUBSTITUTE "4.0". | |
| PAGE 8 | |
| PARA. 4.4.4.3.1 INDIVIDUAL ROLLS, LINE 7, DELETE | |
| "4.0" AND SUBSTITUTE "2.5". | |
| PAGE 9 | |
| TABLE V, LINE 4, SILICA CONTENT, UNDER | |
| THE "REQUIREMENT COLOUM | |
| AFTER "TABLE I" ADD "AND II" | |
| PARA. 4.5, TABLE V, "RESULTS REPORTED TO THE | |
| NEAREST" COLUMN, | |
| LINE 13, UNDER "WIDTH" REQUIREMENT, DELETE | |
| "0.001 INCH" AND SUBSTITUTE "1/16 INCH". | |
| LINE 14, UNDER "LENGTH" REQUIREMENT, DELETE | |
| "0.001 INCH" AND SUBSTITUTE "1/4 YARD". | |
| 4.5.1, LINE 4, DELETE "2 YARDS" AND SUBSTITUTE | |
| "3 YARDS". | |
| PAGE 11 | |
| AFTER 6.1.2, ADD NEW PARAGRAPH: "6.1.3 COLOR. | |
| BLACK PIGMENT ZINC OXIDE, WHEN USED TO PRODUCE | |
| A BLACK CLORED GLASS CLOTH, AND RED IRON | |
| OXIDE WHEN USED TO PROCURE A RED COLORED | |
| GLASS CLOTH, HAVE BEEN SUCESSFUL IN MEETING | |
| THE NON TOXIC, FLAME RESISTANT, AND | |
| NONCOMBUSTIBLE REQUIREMENTS. | |
| . | |
| Breaking strength for Class 1, Type 1 satin cloth: | |
| BREAKING STRENGTH REDUCTION |
| PAGE 5 |
| TABLE II, BREAKING STRENGTH (LB/IN), WARP (MIN), UNDER TYPE I, CLASS 1, DELETE “200” AND SUBSTITUTE “110”. |
TABLE II, BREAKING STRENGTH (LB/IN), FILL (MIN), UNDER TYPE I, CLASS 1, DELETE “150” AND SUBSTITUTE “40”.
| The test method used to verify the breakings strength requirements has been changed from ASTM D1682 and is now ASTM D5035. |
| . |
| Intended for use in protecting equipment and personnel from spatter from metal welding and heavy cutting operations. |
| . |
| Suitable for stress-relieving operations. |
| . |
| Type 1, Class 1 material is a pliable heavyweight fabric, which provides thermal protection against metal encountered during welding or heavy cutting operations. |
| . |
| Width: 35 to 38 inches including selvage |
| Environmental protection: |
| Abrasion resistant, fire resistant, and mildew resistant |
| Cloth Weight (for uncoated or untreated cloth): |
| 31 ounces per square yard minimum and |
| 39 ounces per square yard maximum |
| *Contractor is not required to meet this requirement when a continuous process is used to coat the uncoated or untreated cloths.* |
| . |
| Fiber material: Glass basic |
| Color (for uncoated or untreated cloth): Tan |
| Roll Length: Not to exceed 25 yards |
| Thickness (treated or coated cloth): |
| 0.040 inches minimum to 0.062 inches maximum |
| Weave: 8 or 12 harness satin |
| Procurement Group Code (PGC): 11311 |
| Type: I (Silica glass) |
| Class: 1 (Heavyweight) |
| . |
| Unit of issue is a YARD (YD). |
| . |
| WHENEVER REQUESTED BY THE DLA CLOTHING AND TEXTILE PRODUCT SPECIALIST THROUGH THE DLA CLOTHING AND TEXTILE ACQUISITION OFFICER AND/OR THE DLA ACQUISITION SPECIALIST, TEST REPORTS AND COMPONENT CERTIFICATIONS IN ACCORDANCE WITH Revision 1 of the DLA TROOP SUPPORT CLOTHING & TEXTILES ADDITIONAL QUALITY ASSURANCE REQUIREMENTS dated August 2021 ARE REQUIRED WITH ALL CONTRACT COMPONENT LOTS. |
| . |
| SOURCES OF COMPONENT MATERIALS SHALL BE IDENTIFIED, |
| INCLUDING APPLICABLE SPECIFICATIONS, AND SHALL NOT |
| BE CHANGED THROUGHOUT THE LIFE OF THE CONTRACT |
| WITHOUT REQUEST AND APPROVAL BY THE DLA TROOP |
| SUPPORT CONTRACTING OFFICER THROUGH MODIFICATION |
| TO THE CONTRACT. |
| RESPONSIBILITY OF INSPECTION. THE CONTRACTOR IS |
| RESPONSIBLE FOR THE PERFORMANCE OF ALL INSPECTION, |
| EXAMINATION, AND TEST REQUIREMENTS SPECIFIED |
| HEREIN AND IN THE SITED SPECIFICATIONS AND CONTRACT. |
| THE GOVERNMENT RESERVES THE RIGHT TO PERFORM ANY |
| OF THE INSPECTIONS, EXAMINATIONS AND TESTS AS |
| DEEMED NECESSARY TO ENSURE SUPPLIES AND SERVICES |
| CONFORM TO PRESCRIBED REQUIREMENTS. |
| . |
| RT001: MEASURING AND TEST EQUIPMENT |
| . |
| FED-STD-595C, COLORS USED IN GOVERNMENT PROCUREMENT, AND ALL ASSOCIATED SLASH SHEETS HAVE BEEN CANCELLED (FEBRUARY 14, 2017) AND SUPERSEDED BY SAE AMS-STD-595. |
| ADDITIONAL INFORMATION FOR SAE AMS-STD-595: |
| COPIES OF SAE AMS-STD-595 CAN BE OBTAINED FROM: |
WEBSITE: STORE.SAE.ORG/EA/
| TELEPHONE: 877-606-7323 (INSIDE USA AND CANADA) |
| +1 724-776-4970 (OUTSIDE USA) |
| MAIL: SAE CUSTOMER SERVICE |
| 400 COMMONWEALTH DRIVE |
| WARRENDALE, PA 15096-0001 |
| . |
| DEPARTMENT OF DEFENSE INDEX OF SPECIFICATIONS AND STANDARDS. |
| PART I AND II, JULY 2000 AND SUPPLEMENT, MARCH 2000 |
| . |
| LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACHMENTS |
| a. This solicitation/award consists of the following documents, exhibits, and other attachments |
| b. DLA Troop Support Clothing & Textiles Additional Quality Assurance Requirements Revision 1 dated August 2021, which has superseded DLA Troop Support Clothing and Textiles Additional Quality Assurance Requirements dated October 2018. |
| . |
| 52.246-15 CERTIFICATE OF CONFORMANCE |
| . |
| REVIEW OF THIS ITEM HAS DETERMINED THAT THE SPECIFICATIONS, STANDARDS, PRODUCT DESCRIPTIONS OR OTHER TECHNICAL DATA APPLICABLE TO THIS PROCUREMENT ACTION DO NOT REQUIRE THE USE |
| OF CLASS I OZONE DEPLETING SUBSTANCES (ODS) OR ODC(S). |
| . |
| Identification of Testing Sites. Unless the contract mandates a Government laboratory be used to conduct testing, the prime contractor shall identify all testing sites that will perform any test required by the terms of the contract, including end item testing. |
Any laboratory proposed by the contractor is subject to the approval of the contracting officer. Testing facilities shall be subject to on-site witnessing of testing by the Government. The use of a laboratory previously approved by the Government is not a guarantee that testing will be performed properly, nor does it relieve a contractor from the contractual obligation to present conforming supplies accompanied by true, accurate, and valid test results.
Certification of Testing Sites. The prime contractor shall identify a technical point of contact for the testing site and provide current contact information. The prime contractor should alert the technical point of contact that the certification process has begun. A current ISO 17025 accreditation whose scope encompasses the contractual testing or equivalent will be accepted. When a testing site and its contact information are provided to DLA Contracting and the DLA Product Specialist, the product specialist will initiate a request for the DLA Product Test Center (DLA-PTC) to certify the lab. This request will be managed via an internal DLA Troop Support process.
| In the absence of an appropriate ISO 17025 accreditation, the |
| DLA-PTC will compare all required testing in the contract to the commercial lab capability. If the testing facility is new and/or unknown to the DLA-PTC, a lab certification survey (DLA Form 6005) will be provided for submission. |
If the DLA-PTC has a lab survey on file that is less than 3 years old, that survey will be used for the initial evaluation. The DLA-PTC may ask for additional information or clarifications. If the laboratory survey on file is over 3 years old, a new form will be sent out for the testing facility to fill out. During a contract, the laboratory may be asked to fill out another lab survey when the original survey becomes older than 3 years.
Note: The Qualified Laboratories List (QLL) previously maintained by DPSC has been canceled. No testing facility should refer to their previously issued QLL number.
| Approval. If the testing facility and its named subcontractors |
| meet the capability of the required testing, the DLA-PTC will notify the DLA Troop Support Product Specialist. Once approved by contracting, the testing facility becomes the Place of Performance and is placed in the contract. |
| Disapproval. If a testing facility does not meet the testing |
| capability as per the specifications, the prime contractor is asked to submit another laboratory, and the process starts anew. |
Note: DLA will require a total of 45 calendar days from the date of the receipt of the request to add a certified testing location to the date the requestor (contractor) is provided a decision of the laboratory certification.
| For more details on the lab certification process, reference Revision 1 of the DLA Troop Support Additional Quality Assurance Requirements dated August 2021, which is incorporated by reference into this contract. |
| . |
| 4/30/24 |
DTS01
DTS01 Material Costs Economic Price Adjustment – Department of Labor Index (FEB 2023)
| (a) Warranties. The contractor warrants that— |
| (1) The base unit prices set forth in the Schedule do not include allowances for any portion of the contingency covered by this procurement note; and |
| (2) Prices invoiced shall be computed in accordance with the terms of this procurement note. |
| (b) Definitions. As used throughout this procurement note— |
| (1) "Index", for the purpose of price adjustment under this procurement note, means the Producer Price Index(es) reported in the monthly publication entitled, “Producer Price Indexes”, published by the United States (U.S.) Department of Labor (DOL), Bureau of Labor Statistics (BLS) for the following code number(s) and title(s): _________________[contracting officer fill-in]_________________________. Note: Up to two indexes can be used under this procurement note. If two indexes are used, a unit allowance for each index must be identified in paragraph (5). |
| (2) "Base index" means the arithmetic average of the final version of the index published for the 3 months preceding the closing date for receipt of proposals or the date required for receipt of final proposal revisions if discussions were held. |
| (3) “Adjusting index" means the arithmetic average of the first published and/or the final version of the index for the 3 months prior to the month in which the adjusting contract modification is effective. |
| (4) "Base unit price" means the unit price applicable to a quantity of a contract line item established at contract award, exclusive of any price adjustment pursuant to this procurement note. Thus, when applicable, the term “base unit price” shall mean the tier or option term unit price established at contract award that corresponds to the tier or option term for which a price adjustment is being made. |
| (5) “Unit allowance” means the portion of the base unit price’s material-related cost(s) that is/are subject to the adjustment under this procurement note. For this solicitation, the unit allowance is: ________[contacting officer fill-in percentage] _________. If two indexes are being used, indicate the unit allowance per index cited in paragraph (1): ______________________________________________________________________________ |
| (6) “Adjustment period” means the period during which a particular adjustment to the unit price under this procurement note (calculated at the beginning of the adjustment period) will apply. |
| (c) Adjustments. The price adjustment shall be made to the base unit price that was established at contract award for the tier or option period that corresponds to the adjustment period for which the adjustment is being made. Prior to the end of each adjustment period, the contracting officer will calculate the adjusting index and any adjusted contract unit price(s) for the new adjustment period and modify the contract accordingly. The contracting officer will make price adjustments in accordance with this procurement note by issuing a contract modification showing the base index, the adjusting index, the base unit price, the mathematical calculations, and the changed unit price(s). The price adjustment shall apply to orders issued after the effective date of the contract modification establishing the adjusted unit price for the adjustment period. The contracting officer will base the price adjustment(s) for each adjustment period on the percentage change between the base index and the adjusting index for the adjustment period, as applied to the unit allowance of the applicable base unit price(s). The unit allowance agreed to at time of award will remain fixed throughout the life of the contract unless the Government authorizes a change. |
| 1) The contractor shall decrease its price in any particular adjustment period if the adjusting index is less than the base index. This contract allows one (1) price adjustment per year. |
| (2) Example of adjustment calculation if one index is used: |
| A contract containing three (3), one-year tier terms was awarded on 24 March 2021. The date for receipt of final proposal revisions was 21 January 2021. The Tier Term 2 unit price (i.e., the base unit price in this example) is being adjusted under the terms of this procurement note. Tier Term 2 contains a unit price of $35.50 and begins on 24 March 2022. The index being used is WPU 034203 – PPI Commodity data for Textile products and apparel-Finished manmade, silk, and other natural fiber (excluding cotton and wool) broadwoven fabrics, not seasonally adjusted. The unit allowance is 30%. |
| Calculating the base index: Average the final version of the index published for the 3 months preceding the date required for receipt of final proposal revisions (21 January 2021). |
| (Final version of index for October 2020: 185.8; November 2020: 187.9; December 2020: 187.6) = 187.1* |
| Calculating the adjusting index: Average the first published or final version (as applicable) of the index for the 3 months prior to the month in which the adjusting contract modification is effective (March 2022). |
| (Index for December 2021: 246.591; January 2022: 246.745; February 2022: 248.606) = 247.3* |
| Calculating the change to index: Adjusting index (247.3) minus base index (187.1) = 60.2 |
| Calculating the economic price adjustment: |
| 1. Divide the change to index (60.2) by the base index (187.1) to obtain the economic price adjustment factor = 60.2 /187.1 = .32182790 or 32.1828%** |
| 2. Multiply the base unit price ($35.50) by the unit allowance (30%) to obtain the cost covered for this adjustment = $35.50 x 30% = $10.65*** |
| 3. Multiply the cost covered ($10.65) by the economic price adjustment factor (32.1828%) to calculate the economic price adjustment amount = $10.65 x 32.1828% = $3.43*** |
| 4. Add the economic price adjustment amount ($3.43) to the base unit price ($35.50) to calculate the adjusted Tier Term 2 unit price = $35.50 + $3.43 = $38.93 |
| (3) Example of adjustment calculation if two indexes are used: |
| A contract containing three (3), one-year tier terms was awarded on 24 March 2021. The date for receipt of final proposal revisions was 21 January 2021. The Tier Term 2 unit price (i.e., the base unit price in this example) is being adjusted under the terms of this procurement note. Tier Term 2 contains a unit price of $55.00 and begins on 24 March 2022. The item is a 50/50 blend of nylon and cotton, therefore two indexes are being used: (1) Index WPU 034203 – PPI Commodity data for Textile products and apparel-Finished manmade, silk, and other natural fiber (excluding cotton and wool) broadwoven fabrics, not seasonally adjusted and (2) Index WPU 034201 - PPI Commodity data for Textile products and apparel-Finished cotton broadwoven fabrics, not seasonally adjusted. The corresponding unit allowance for index WPU 034203 is 20%. The corresponding unit allowance for index WPU 034201 is also 20%. |
| Calculating the base index: Average the final version of the index published for the 3 months preceding the date required for receipt of final proposal revisions (21 January 2021). |
| (1) (Final version of index WPU 034203 for October 2020: 185.8; November 2020: 187.9; December 2020: 187.6) = 187.1* |
| (2) (Final version of index WPU 034201 for October 2020: 158.3; November 2020: 158.3; December 2020: 158.3) = 158.3* |
| Calculating the adjusting index: Average the first published or final version (as applicable) of the index for the 3 months prior to the month in which the adjusting contract modification is effective (March 2022). |
| (1) (Index WPU 034203 for December 2021: 246.591; January 2022: 246.745; February 2022: 248.606) = 247.3* |
| (2) (Index WPU 034201 for December 2021: 178.728; January 2022: 178.88; February 2022: 185.634) = 181.1* |
| Calculating the change to index: |
| (1) Adjusting index (247.3) minus base index (187.1) = 60.2 (index WPU 034203) |
| (2) Adjusting index (181.1) minus base index (158.3) = 22.8 (index WPU 034201) |
| Calculating the economic price adjustment: |
| 1. Divide the change to index by the base index to obtain the economic price adjustment factor. |
| a. 60.2 /187.1 = .32182790 or 32.1828%** |
| b. 22.8/158.3 = .14390819 or 14.3908%** |
| 2. Multiply the base unit price by the unit allowance to obtain the cost covered for this adjustment. |
| a. $55.00 x 20% = $11.00*** |
| b. $55.00 x 20% = $11.00*** |
| 3. Multiply the cost covered by the economic price adjustment factor to calculate the economic price adjustment amount. |
| a. $11.00 x 32.1828% = $3.54*** |
| b. $11.00 x 14.3908% = $1.58*** |
| 4. Add the total economic price adjustment amount ($3.54 + $1.58 = $5.12) to the base unit price ($55.00) to calculate the adjusted Tier Term 2 unit price = $55.00 + $5.12 = $60.12 |
| *In computing the base and adjusting indexes, the contracting officer will round the resulting figure to the first decimal place. |
| **The contracting officer will round this number to the fourth decimal place. |
| ***The contracting officer will round all dollar figures to the nearest cent. |
| (d) Upward ceiling and downward floor on economic price adjustment. An upward ceiling and downward floor of no more than 10% of the applicable base unit price shall apply. The contractor agrees that the aggregate of the increases in any contract unit price under the terms of this procurement note shall not exceed 10% of the applicable base unit price, except as provided hereafter. |
| (1) If at any time the contractor has reason to believe that within the near future a price adjustment under the terms of this procurement note will be required that will exceed the adjustment ceiling or floor for any item, the contractor shall promptly notify the contracting officer in writing of the expected increase or decrease. The notification shall include a revised ceiling or floor the contractor believes is sufficient to permit completion of remaining contract performance, along with appropriate explanation and documentation as required by the contracting officer. |
| (2) If an increase in the index would raise a contract unit price for an item above the current ceiling, the contracting officer may issue a contract modification to raise the ceiling. If the contracting officer does not raise the contract ceiling, the contracting officer will promptly notify the contractor in writing. If a decrease in the index would lower a contract unit price for an item below the current floor, the contacting officer may issue a contract modification to lower the floor. If the contracting officer does not lower the contract floor, the contracting officer will promptly notify the contractor in writing. |
| (e) Invoices. The basis for prices payable under this contract is the latest adjusted unit price incorporated into the contract as of the date of order. |
| (f) Retroactive adjustment. This paragraph applies only if the contracting officer selected “first published index” in paragraph (b)(3). If the Government has already paid for orders delivered during an adjustment period, the contractor may request a retroactive adjustment. The contracting officer will base the retroactive adjustment on the difference between a higher final revised index applicable to an adjustment period and the index values used in calculating the unit price for that adjustment period, subject to the adjustment ceiling in paragraph (d) and under the following conditions: |
| (1) The request for equitable adjustment clearly establishes that the unit price adjustment for the adjustment period would have been higher if the final revised index had been used and identifies all invoices and payments to which it applies cites the specific index differences relating to the requested adjustment and provides a calculation of the total net price adjustment for items delivered during that adjustment period. |
| (2) The total dollar change for items delivered is $____[contracting officer fill-in]____ ($500.00 unless otherwise stated) or more for the applicable adjustment period(s). |
| (3) The contracting officer received the contractor’s written request within 45 days following publication of the final revised index. |
| The contractor shall adjust its prices downward based on the difference between a lower final revised index applicable to an adjustment period and the index values used in calculating the unit price for that adjustment period, subject to the limitation in paragraph (f)(2). |
| (g) Revision of index. If the applicable index is discontinued or its method of derivation is altered substantially, or if the contracting officer determines that the index consistently and substantially fails to reflect market conditions, the parties shall mutually agree upon an appropriate and comparable substitute. The contracting officer will modify the contract to reflect such substitute effective on the date the index was discontinued, altered, or began to consistently and substantially fail to reflect market conditions. |
| (h) Final invoice. The contractor shall include a statement on the final invoice confirming it has applied all decreases required by this procurement note to the amounts invoiced. |
| (i) Disputes. The “Disputes” clause of the contract applies to any dispute arising under this procurement note. |
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