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a.                   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.

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 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 the rate.

c.                   Any price adjustment under this clause is subject to the following limitations:

        I.            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.

      II.            The aggregate of the increases in any contract unit price made under this clause shall not exceed 15 percent of the original unit price.

d.                  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.