Revised_B19.02.pdf

B19.02 ECONOMIC PRICE ADJUSTMENT (OVERSEAS) (DLA ENERGY JAN 2012)

(a) WARRANTIES. The Contractor warrants that--

(1) The unit prices set forth in the Schedule do not include allowances for any portion of the contingency covered by this contract text; and

(2) The prices to be invoiced hereunder shall be computed in accordance with the texts of this contract.

(b) DEFINITIONS. As used throughout this contract text, the term--

(1) Award price means the unit price offered by the Contractor and set forth opposite the item in the Schedule.

(2) Reference price means the market price, this is either published in an independent publication or supplied by the Contractor, with which the award price is to fluctuate. The reference price should be a market price for the same or similar product(s) as the item being purchased.

(3) Date of delivery means--

(i) FOR TANKER OR BARGE DELIVERIES.

(A) F.O.B. ORIGIN. The date and time vessel commences loading;

(B) F.O.B. DESTINATION. The date and time vessel commences discharging;

(ii) FOR PIPELINE DELIVERIES. The date and time product commences to move past the specified f.o.b.

point; and

(iii) FOR ALL OTHER TYPES OF DELIVERIES. The date product is received.

(c) ADJUSTMENTS. The prices payable under this contract shall be the award price increased or decreased by the amount, determined according to the following formula, that the reference price shall have increased or decreased, to and including the date of delivery.

(1) The amount of increase or decrease in the award price shall be based on the same number of cents, or fraction thereof, that the reference price increases or decreases per like unit of measure.

(2) The reference price with which the award price for the listed item is to fluctuate (and which is more fully defined in the Table below) is-- [ ] (i) The low price published in _________________________________________________________.

(name of publication)

[ X ] (ii) The average of the prices published in OMR Market Report- Weekly Survey (OMR)_.

(name of publication)

[ ] (iii) The established price posted by ______________________________________________________ and (name of company) published in _________________________________________________________ (name of publication)

(3) COMMERCIAL. For price adjustments utilizing commercial publications such as Platts Oilgram, etc., the reference price in effect on the date of delivery shall be that item’s reference price that is in effect for the dates in the Table below. If an effective date is not cited in a publication, then the date of publication shall apply. An increase or decrease in any reference price published in a trade price service or in a commercial journal shall apply only to deliveries made on or after the effective date of such trade price service or commercial journal. In the event of a holiday for which an effective date is not used, the latest effective price(s) prior to the effective date shall be used. NOTE: Platts issues corrections to its published prices on a regular basis. Platts posts corrections to its website (www.platts.com) for its subscribers. If a correction to a reference price is found on the Platts website, all of the items that use that reference price will be corrected. DLA Energy will correct any other reference prices, as notice of the correction is received. DLA Energy will work with the pricing services to determine the appropriate price, whenever an offeror or contractor can show that the price referenced should be reviewed.

(4) NONCOMMERCIAL (NOTIFICATION). For price adjustments utilizing a reference price indicator other than commercial publications such as Platts Oilgram, the Contractor shall notify the Contracting Officer of any changes in the reference price in writing within 15 calendar days from the date thereof.

(i) INCREASES. Any increase in unit price as a result of an increase in reference price shall apply only to deliveries made on or after the date of receipt by the Contracting Officer of a written notification from the Contractor of such increase.

However, the prices payable under this contract shall in no event exceed the Contractor’s posted or established selling price in effect on the date of delivery for the product supplied in the form of delivery made at the point of delivery. Also, no notification incorporating an increase in a contract unit price shall be executed pursuant to this contract text until the increase has been verified by the Contracting Officer.

(ii) DECREASES. If the Contractor fails to notify the Contracting Officer of any decrease in the reference price, within the allotted 15 day period, such decrease shall apply to all deliveries made on or after the effective date of such decrease.

However, if any overpayment is made to the Contractor as a result of the Contractor’s failure to give timely notice to the Contracting Officer of any decrease in the established price, the Contractor shall be charged interest on such overpayment from the date of the http://www.platts.com/ overpayment to the date of reimbursement by the Contractor for the overpayment in accordance with the Disputes paragraph of the CONTRACT TERMS AND CONDITIONS – COMMERICAL ITEMS clause of this contract.

(5) Where the reference price is the Contractor’s established price (see (c)(2)(iii) above), the Contractor warrants that the product selected is one for which, except for modification required by the specifications of this contract, the Contractor has an established price. Such price is the net price after applying any applicable standard trade discounts offered by the Contractor for its catalog, list, or schedule price. The Contractor further warrants that, as of the current date, any differences between the unit prices of the line items identified in the Schedule and the Contractor's established price for like quantities of the nearest commercial equivalents of such contract items are due to compliance with contract specifications and to compliance with any requirements that this contract may contain for preservation, packaging, and packing beyond standard commercial practice.

(d) MODIFICATIONS. Any resultant price changes shall be provided via notification through contract modifications and/or postings to the DLA Energy web page at http://www.desc.dla.mil under the heading Vendor Resources and then Product Price Adjustments.

(e) FAILURE TO DELIVER. Notwithstanding any other conditions of this contract text, no upward adjustment shall apply to product scheduled under the contract to be delivered before the effective date of the adjustment, unless the Contractor’s failure to deliver according to the delivery schedule results from causes beyond the Contractor’s control and without its fault or negligence, within the meaning of the Excusable Delays and Termination for Cause paragraphs of the CONTRACT TERMS AND CONDITONS – COMMERCIAL ITEMS clause of the this contract in which case the contract shall be amended to make an equitable extension of the delivery schedule.

(f) UPWARD CEILING ON ECONOMIC PRICE ADJUSTMENT. The Contractor agrees that the total increase in any contract unit price pursuant to these economic price adjustment contract texts shall not exceed ______ percent of the award 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 conditions of this contract text will be required that will exceed the current contract ceiling price for any item, the Contractor shall promptly notify the Contracting Officer in writing of the expected increase. The notification shall include a revised ceiling 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 actual increase in the reference price would raise a contract unit price for an item above the current ceiling, the Contractor shall have no obligation under this contract to fill pending or future orders for such item, as of the effective date of the increase, unless the Contracting Officer issues a contract modification to raise the ceiling. If the contract ceiling will not be raised, the Contracting Officer shall so promptly notify the Contractor in writing.

(g) REVISION OF REFERENCE PRICE INDICATOR. In the event—

(1) Any applicable reference price is discontinued or its method of derivation is altered substantially;

(2) The reference price is an average of published or posted prices, and any one price ceases to be published or posted;

(3) The reference price is published in a trade price service or commercial journal and such publication ceases to publish said reference price or changes its method of quoting prices; or

(4) The Contracting Officer determines that the reference price consistently and substantially failed to reflect market conditions— the parties shall mutually agree upon an appropriate and comparable substitute for determining the price adjustment described hereunder.

The contract shall be modified to reflect such substitute effective on the date the indicator was discontinued, altered, or began to consistently and substantially fail to reflect market conditions. If the parties fail to agree on an appropriate substitute, the matter shall be resolved in accordance with the Disputes paragraph of the CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS clause of this contract.

(h) CONVERSION FACTORS. If this contract text requires quantity conversion for economic price adjustment purposes, the conversion factors for applicable products, as specified in the CONVERSION FACTORS contract text, apply unless otherwise specified in the Schedule.

(i) EXAMINATION OF RECORDS. The Contractor agrees that the Contracting Officer or designated representatives shall have the right to examine the Contractor’s books, records, documents, or other data the Contracting Officer deems necessary to verify Contractor adherence to the wording of this contract text.

(j) FINAL INVOICE. The Contractor shall include a statement on the final invoice that the amounts invoiced hereunder have applied all decreases required by this contract text.

(k) TABLE.

http://www.desc.dla.mil/

I II III IV V VI VII

Name of If company - Reference Maximum price company/ name of product; Method of price payable under publication If publication - delivery as of this contract (identify heading under applicable __________ (includes any Item No. by number which reference Location where to the (date) tax included (listed from (c)(2) price is published reference price reference (exclude in the award items) above) and name of product is applicable price all taxes p rice .

*FOR ALL ITEMS, PLEASE SEE NOTATIONS BELOW:

*1. The recommended escalators for this program are the average (high) weekly postings as published in the Oil Market Report under the heading “O.M.R. Oil Market Report- Weekly Survey. For all (-EG) items, the recommended postings is Premium Unleaded; for all diesel fuel (-DE) items, the recommended posting is Diesel 10ppm; and for all fuel oil #2 (-46) items, the recommended posting is Gasoil.

2. The base reference price for Solicitation SP0605-18-R-0201 are average high weekly posting from the week of October 23,2017- October 27, 2017 as published using the OMR market report Weekly Survey from October 23, 2017 –October 27,,2017. Offer price for all items should be based on the reference OMR postings stated below Price Ave Week of 10/23/2017 -10/27/2017 Delivery Week of 10/30/2017 – 11/3/2017

INT-B19.02 CONT.

3. Contract prices will be updated every week, through the end of the contract period using the average (high) weekly postings as published in the Oil Market Report under the heading “O.M.R. Oil Market Report- Weekly Survey”. For Example: prices will be established for the week of 23 October - 27 October 2017 using the previous week’s average (high) weekly postings as published in Oil Market Report- Weekly Survey for the week of 30 October - 3 November, 2017. The exchange rate used for all weekly contract price

FUEL OIL #2 (FO #2) DIESEL FUEL

TAX: 6.14 TAX: 47.04

WEST 63.63 WEST 106.1

RHINE-MAIN 64.22 RHINE-MAIN 106.67

SOUTH WEST 63.84 SOUTH WEST 106.54

SOUTH 64.84 SOUTH 107.46

SUM TOTAL: 256.53 SUM TOTAL: 426.77

AVG: 64.13 AVG: 106.69

LESS TAXES: 57.99 LESS TAXES: 59.65

OMR PRICE IN

EU/L: 0.5799 OMR PRICE IN EU/L: 0.5965

MOGAS FO#6

TAX: 65.45 TAX: N/A

OMR REGIONS APPLICABLE:

OMR REGIONS

APPLICABLE:

WEST 123.16 WEST 0.00

RHINE-MAIN 123.14 SOUTH WEST 0.00

SOUTH WEST 121.50 SOUTH WEST(FOB) 0.00

SOUTH 122.06 SOUTH 0.00

SUM TOTAL: 489.86 SUM TOTAL: 0.00

AVG: 122.47 AVG: 0.00

LESS TAXES: 57.02 LESS TAXES: N/A

OMR PRICE IN EU/L: 0.5702 OMR PRICE IN EU/kg: 0.0000

Week of:

changes will be the Monday of the weekly price change. For Example, the exchange rate to establish prices for the week of 30 October – 3 November, 2017 will be the rate established on Monday 30 October, 2017.

The price published in the O.M.R. indicated in Column VI above have been adjusted by deducting all taxes. The taxes deducted are as follows:

Product Product Code Taxes

GASOLINE, PREMIUM UNLEADED -EG 65.45 (EURO PER 100 LITERS)

DIESEL FUEL -DE 47.04 (EURO PER 100 LITERS)

FUEL OIL, BURNER #2 -46 6.14 (EURO PER 100 LITERS)

These taxes will be deducted from prices contained in subsequent O.M.R. Oil Market Report- Weekly Survey’s for the applicable week.

The contractor will notify the Contracting Officer of any change in the amount of the taxes to be deducted.