Not to Exceed Ceiling Rates for Pricing of Equitable Adjustments Sample Clauses

Not to Exceed Ceiling Rates for Pricing of Equitable Adjustments. Offerors are advised that the Contract includes the clause Equitable Adjustments, which provides for ceilings on overhead, profit, and commission (defined in the clause) for all price adjustments resulting from changes under the contract. This provision does not apply to the offerors’ original, competitive proposals . The ceilings for profit and commission shall not exceed those identified in Section H, Paragraph H.9. Offerors shall propose by filling in the appropriate blank in the Contract, Paragraph H.8, not-to-exceed ceiling rates for overhead on changes, as defined in the clause. Offerors must identify on a separate page the cost base to which the rate is applied, and the elements of cost included in the overhead pool. If the above categories are not consistent with the Offeror’s standard accounting practices, alternate category ceilings may be proposed. If the Offeror proposes different ceiling categories than those listed above, the Offeror must explain how the proposed ceiling rates relate to or differ from those identified above; for example, an Offeror may propose a separate rate for “General and Administrative” expense (corporate headquarters) and “Overhead” (local job burden). Please note that labor burden, including FICA, FUI, SUI, and Workmen’s Compensation, will be considered direct costs for purposes of this evaluation and under the terms of the “Equitable Adjustment” clause; therefore, these costs should be excluded from the Offeror’s proposed overhead rate ceiling calculations. Your attention is directed to the contract Equitable Adjustments clause.