(a) A fixed-price contract with economic price adjustment provides for upward and downward revision of the stated contract price upon the occurrence of specified contingencies. Economic price adjustments are of three general types:
(1) Adjustments based on established prices. These price adjustments are based on increases or decreases from an agreed-upon level in published or otherwise established prices of specific items or the contract end items.
(2) Adjustments based on actual costs of labor or material. These price adjustments are based on increases or decreases in specified costs of labor or material that the contractor actually experiences during contract performance.
(3) Adjustments based on cost indexes of labor or material. These price adjustments are based on increases or decreases in labor or material cost standards or indexes that are specifically identified in the contract.
(b) The contracting officer may use a fixed-price contract with economic price adjustment in conjunction with an award-fee incentive (see 16.404) and performance or delivery incentives (see 16.402-2 and 16.402-3) when the award fee or incentive is based solely on factors other than cost. The contract type remains fixed-price with economic price adjustment when used with these incentives.
[48 FR 42219, Sept. 19, 1983, as amended at 68 FR 13201, Mar. 18, 2003]
Notes of Decisions
Hermes Consol., Inc. v. United States, 58 Fed. Cl. 3 (Fed. Cl. 2003).
“48 C.F.R § 16.203-1 (2003). 5 The question in the case was whether the PMM-based price adjustments in the con *6 tract fell under subsection (a) as adjustments “based on increases or decreases from an agreed upon level in published or otherwise established prices.”
Gold Line Refining, Ltd. v. United States, 43 Fed. Cl. 291 (Fed. Cl. 1999).
· cites it 2× “See 48 C.F.R. § 16.203-1 (1993). 4 *293 By letter dated November 22, 1994, Gold Line asked DFSC to amend the contract (as permitted under Clause B19.”
Gold Line Refining, Ltd. v. United States, 54 Fed. Cl. 285 (Fed. Cl. 2002).
“” 48 C.F.R. § 16.203-1 . The FAR recognizes three general types of economic price adjustments: (a) Adjustments based on established prices.”
Barrett Refining Corp. v. United States, 42 Fed. Cl. 128 (Fed. Cl. 1998).
“See 48 C.F.R. § 16.203-1 (1986). The court noted that the PMM index did not represent an “established price” as defined by the FAR.”
Tesoro Hawaii Corp. v. United States (Fed. Cir. 2005).
“" 48 C.F.R. § 16.203-1 (1994). The regulation authorizes the use of three types of EPAs: (a) Adjustments based on established prices.”
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