H-13 ECONOMIC PRICE ADJUSTMENT
The Contractor shall notify the Contracting Officer if, at any time
during contract performance, the actual rate of pay for the Contractor’s
highest labor category (including fringe benefits) increases more than 5% above
the ceiling unit price bid for Item 0001, 0004 or 0007. 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 end of the ordering period for the contract. The notice
shall include the Contractor's proposal for an adjustment in the ceiling unit
price(s) 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 from the
Contractor’s original proposal.
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 applicable ceiling unit price(s) and
its effective date. However, the Contracting Officer may postpone the
negotiations until an accumulation of increases in the labor rate (including
fringe benefits) results in an adjustment allowable under subparagraph (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
applicable ceiling unit prices to reflect the increases resulting from the
adjustment. The Contractor shall continue performance pending agreement on, or
determination of, any adjustment and its effective date. The Government shall
not be liable for any damages associated with the Contractor’s inability to bid
task orders above the unit ceiling rate pending negotiation of the increase in
Any price adjustment under this clause is subject to the following
Any adjustment shall be limited to the effect on the ceiling unit prices
of the increases in the rates of pay for labor (including fringe benefits).
There shall be no adjustment to any task order prices.
The aggregate of the increases in any contract unit price made under
this clause shall not exceed 15 percent of the original unit price.
The Contracting Officer may examine the Contractor's books, records, and
other supporting data relevant to the cost of labor (including fringe benefits)
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.