Common use of Economic Price Adjustment Clause in Contracts

Economic Price Adjustment. Beginning twelve (12) months after the effective date of this Contract and for every annual anniversary thereafter, the prices set forth in Exhibit A – Included Ammunition and Prices may be adjusted upon Contractor request. Requests for price adjustment must be made in writing and be received between October 15 and December 15 of each calendar year to be eligible for an adjustment on the following February 1. In the event Contractor fails to timely request a price adjustment, Enterprise Services, at its sole discretion, may allow an untimely adjustment; Provided, however, that such adjustment will not be effective for any time prior to Enterprise Services’ price adjustment, and Contractor is in good standing, by reasonably performing Contract obligations, including timely sales reporting and paying vendor management fees as required herein, are eligible for economic adjustments. Price adjustments will be made in accordance with the average percentage change in the United States Department of Labor, Bureau of Labor and Statistics (BLS) Produce Price Indices (PPI) below issued for the contract term. Only final published data will be used. PCU332992332992 (Small Arms Ammunitions Manufacturing) Economic adjustment will lag one (1) calendar quarter past the Contract commencement date to allow for publication of BLS data. All calculations for the index shall be based upon the latest version of data published as of December 1st each year. Prices may be adjusted and effective on February 1st of each year. If an index is recoded (i.e., the recoded index is a direct substitute for the prior index according to the BLS), this Contract will use the recoded index, as applicable. If an index becomes unavailable, Enterprise Services shall substitute a proxy index. If there is not a direct substitute, the next higher aggregate index available will be used. The economic adjustment shall be calculated as follows: New Price = Old Price x (Current Period Index/Base Period Index). The “Current Period Index” is the average of the most recent twelve months of non- preliminary BLS Index values, and the “Base Period Index” is the average of the twelve months of non-preliminary BLS Index values prior to the Current Period Index.

Economic Price Adjustment. Beginning twelve (12The pricing under this contract shall be adjusted in accordance with this clause, provided that in no event will any pricing adjustment be made that would exceed the maximum permissible under any law in effect at the time of the adjustment. There will be no adjustment for orders placed during the first period specified below. Pricing will thereafter be eligible for adjustment during the second and any succeeding performance period(s). For each performance period after the first, a percentage figure will be calculated as described below and that figure will be the economic price adjustment for that entire next period. Pricing adjustments under this clause are not applicable to reimbursable postage or transportation costs, or to paper, if paper prices are subject to adjustment by separate clause elsewhere in this contract. For the purpose of this clause, performance under this contract will be divided into successive periods. The first period will extend from August 1, 2016, and the second and any succeeding period(s) will extend for 12 months after from the end of the last preceding period, except that the length of the final period may vary. The first day of the second and any succeeding period(s) will be the effective date of this Contract and for every annual anniversary thereafter, the prices set forth in Exhibit A – Included Ammunition and Prices may be adjusted upon Contractor request. Requests for economic price adjustment must be made in writing and be received between October 15 and December 15 of each calendar year to be eligible for an adjustment on the following February 1that period. In the event Contractor fails to timely request a price adjustment, Enterprise Services, at its sole discretion, may allow an untimely adjustment; Provided, however, that such adjustment will not be effective for any time prior to Enterprise Services’ price adjustment, and Contractor is in good standing, by reasonably performing Contract obligations, including timely sales reporting and paying vendor management fees as required herein, are eligible for economic adjustments. Price Pricing adjustments will be made in accordance with the average percentage change this clause will be based on changes in the United States seasonally adjusted “Consumer Price Index For All Urban Consumers - Commodities Less Food” (Index) published monthly in the CPI Detailed Report by the U.S. Department of Labor, Bureau of Labor and Statistics (BLS) Produce Price Indices (PPI) below issued for the contract term. Only final published data will be used. PCU332992332992 (Small Arms Ammunitions Manufacturing) Economic adjustment will lag one (1) calendar quarter past the Contract commencement date to allow for publication of BLS data. All calculations for the index shall be based upon the latest version of data published as of December 1st each year. Prices may be adjusted and effective on February 1st of each year. If an index is recoded (i.e., the recoded index is a direct substitute for the prior index according to the BLS), this Contract will use the recoded index, as applicable. If an index becomes unavailable, Enterprise Services shall substitute a proxy index. If there is not a direct substitute, the next higher aggregate index available will be usedStatistics. The economic price adjustment shall will be the percentage difference between Index averages as specified in this paragraph. An index called the variable index will be calculated as follows: New Price = Old Price x by averaging the monthly Indexes from the 12-month interval ending three (Current Period Index/Base Period Index)3) months prior to the beginning of the period being considered for adjustment. The “Current Period Index” This average is then compared to the average of the most recent twelve months of non- preliminary BLS Index valuesmonthly Indexes for the 12-month interval ending May 1, and 2016 called the “Base Period Index” is the average base index. The percentage change (plus or minus) of the twelve months variable index from the base index will be the economic price adjustment for the period being considered for adjustment. The Government will notify the contractor by contract modification specifying the percentage increase or decrease to be applied to invoices for orders placed during the period indicated. The contractor shall apply the percentage increase or decrease against the total price of non-preliminary BLS Index values prior to the Current Period Indexinvoice less reimbursable postage or transportation costs and separately adjusted paper prices. Payment discounts shall be applied after the invoice price is adjusted.

Economic Price Adjustment. Beginning twelve (12The pricing under this contract shall be adjusted in accordance with this clause, provided that in no event will any pricing adjustment be made that would exceed the maximum permissible under any law in effect at the time of the adjustment. There will be no adjustment for orders placed during the first period specified below. Pricing will thereafter be eligible for adjustment during the second and any succeeding performance period(s). For each performance period after the first, a percentage figure will be calculated as described below and that figure will be the economic price adjustment for that entire next period. Pricing adjustments under this clause are not applicable to reimbursable postage or transportation costs, or to paper, if paper prices are subject to adjustment by separate clause elsewhere in this contract. For the purpose of this clause, performance under this contract will be divided into successive periods. The first period will extend from DOA to May 31, 2017, and the second and any succeeding period(s) will extend for 12 months after from the end of the last preceding period, except that the length of the final period may vary. The first day of the second and any succeeding period(s) will be the effective date of this Contract and for every annual anniversary thereafter, the prices set forth in Exhibit A – Included Ammunition and Prices may be adjusted upon Contractor request. Requests for economic price adjustment must be made in writing and be received between October 15 and December 15 of each calendar year to be eligible for an adjustment on the following February 1that period. In the event Contractor fails to timely request a price adjustment, Enterprise Services, at its sole discretion, may allow an untimely adjustment; Provided, however, that such adjustment will not be effective for any time prior to Enterprise Services’ price adjustment, and Contractor is in good standing, by reasonably performing Contract obligations, including timely sales reporting and paying vendor management fees as required herein, are eligible for economic adjustments. Price Pricing adjustments will be made in accordance with the average percentage change this clause will be based on changes in the United States seasonally adjusted “Consumer Price Index For All Urban Consumers - Commodities Less Food” (Index) published monthly in the CPI Detailed Report by the U.S. Department of Labor, Bureau of Labor and Statistics (BLS) Produce Price Indices (PPI) below issued for the contract term. Only final published data will be used. PCU332992332992 (Small Arms Ammunitions Manufacturing) Economic adjustment will lag one (1) calendar quarter past the Contract commencement date to allow for publication of BLS data. All calculations for the index shall be based upon the latest version of data published as of December 1st each year. Prices may be adjusted and effective on February 1st of each year. If an index is recoded (i.e., the recoded index is a direct substitute for the prior index according to the BLS), this Contract will use the recoded index, as applicable. If an index becomes unavailable, Enterprise Services shall substitute a proxy index. If there is not a direct substitute, the next higher aggregate index available will be usedStatistics. The economic price adjustment shall will be the percentage difference between Index averages as specified in this paragraph. An index called the variable index will be calculated as follows: New Price = Old Price x by averaging the monthly Indexes from the 12-month interval ending three (Current Period Index/Base Period Index)3) months prior to the beginning of the period being considered for adjustment. The “Current Period Index” This average is then compared to the average of the most recent twelve months of non- preliminary BLS Index valuesmonthly Indexes for the 12-month interval ending March 1, and 2016, called the “Base Period Index” is the average base index. The percentage change (plus or minus) of the twelve months variable index from the base index will be the economic price adjustment for the period being considered for adjustment. The Government will notify the contractor by contract modification specifying the percentage increase or decrease to be applied to invoices for orders placed during the period indicated. The contractor shall apply the percentage increase or decrease against the total price of non-preliminary BLS Index values prior to the Current Period Indexinvoice less reimbursable postage or transportation costs and separately adjusted paper prices. Payment discounts shall be applied after the invoice price is adjusted.

Economic Price Adjustment. Beginning twelve (12The pricing under this contract shall be adjusted in accordance with this clause, provided that in no event will any pricing adjustment be made that would exceed the maximum permissible under any law in effect at the time of the adjustment. There will be no adjustment for orders placed during the first period specified below. Pricing will thereafter be eligible for adjustment during the second and any succeeding performance period(s). For each performance period after the first, a percentage figure will be calculated as described below and that figure will be the economic price adjustment for that entire next period. Pricing adjustments under this clause are not applicable to reimbursable postage or transportation costs, or to paper, if paper prices are subject to adjustment by separate clause elsewhere in this contract. For the purpose of this clause, performance under this contract will be divided into successive periods. The first period will extend from August 1, 2016 through July 31, 2017 and the second and any succeeding period(s) will extend for 12 months after from the end of the last preceding period, except that the length of the final period may vary. The first day of the second and any succeeding period(s) will be the effective date of this Contract and for every annual anniversary thereafter, the prices set forth in Exhibit A – Included Ammunition and Prices may be adjusted upon Contractor request. Requests for economic price adjustment must be made in writing and be received between October 15 and December 15 of each calendar year to be eligible for an adjustment on the following February 1that period. In the event Contractor fails to timely request a price adjustment, Enterprise Services, at its sole discretion, may allow an untimely adjustment; Provided, however, that such adjustment will not be effective for any time prior to Enterprise Services’ price adjustment, and Contractor is in good standing, by reasonably performing Contract obligations, including timely sales reporting and paying vendor management fees as required herein, are eligible for economic adjustments. Price Pricing adjustments will be made in accordance with the average percentage change this clause will be based on changes in the United States seasonally adjusted “Consumer Price Index For All Urban Consumers - Commodities Less Food” (Index) published monthly in the CPI Detailed Report by the U.S. Department of Labor, Bureau of Labor and Statistics (BLS) Produce Price Indices (PPI) below issued for the contract term. Only final published data will be used. PCU332992332992 (Small Arms Ammunitions Manufacturing) Economic adjustment will lag one (1) calendar quarter past the Contract commencement date to allow for publication of BLS data. All calculations for the index shall be based upon the latest version of data published as of December 1st each year. Prices may be adjusted and effective on February 1st of each year. If an index is recoded (i.e., the recoded index is a direct substitute for the prior index according to the BLS), this Contract will use the recoded index, as applicable. If an index becomes unavailable, Enterprise Services shall substitute a proxy index. If there is not a direct substitute, the next higher aggregate index available will be usedStatistics. The economic price adjustment shall will be the percentage difference between Index averages as specified in this paragraph. An index called the variable index will be calculated as follows: New Price = Old Price x by averaging the monthly Indexes from the 12-month interval ending three (Current Period Index/Base Period Index)3) months prior to the beginning of the period being considered for adjustment. The “Current Period Index” This average is then compared to the average of the most recent twelve months of non- preliminary BLS Index valuesmonthly Indexes for the 12-month interval ending May 1, and 2016 called the “Base Period Index” is the average base index. The percentage change (plus or minus) of the twelve months variable index from the base index will be the economic price adjustment for the period being considered for adjustment. The Government will notify the contractor by contract modification specifying the percentage increase or decrease to be applied to invoices for orders placed during the period indicated. The contractor shall apply the percentage increase or decrease against the total price of non-preliminary BLS Index values prior to the Current Period Indexinvoice less reimbursable postage or transportation costs and separately adjusted paper prices. Payment discounts shall be applied after the invoice price is adjusted.

Economic Price Adjustment. Beginning twelve (12The pricing under this contract shall be adjusted in accordance with this clause, provided that in no event will any pricing adjustment be made that would exceed the maximum permissible under any law in effect at the time of the adjustment. There will be no adjustment for orders placed during the first period specified below. Pricing will thereafter be eligible for adjustment during the second and any succeeding performance period(s). For each performance period after the first, a percentage figure will be calculated as described below and that figure will be the economic price adjustment for that entire next period. Pricing adjustments under this clause are not applicable to reimbursable postage or transportation costs, or to paper, if paper prices are subject to adjustment by separate clause elsewhere in this contract. For the purpose of this clause, performance under this contract will be divided into successive periods. The first period will extend from Date of Award to January 31, 2016, and the second and any succeeding period(s) will extend for 12 months after from the end of the last preceding period, except that the length of the final period may vary. The first day of the second and any succeeding period(s) will be the effective date of this Contract and for every annual anniversary thereafter, the prices set forth in Exhibit A – Included Ammunition and Prices may be adjusted upon Contractor request. Requests for economic price adjustment must be made in writing and be received between October 15 and December 15 of each calendar year to be eligible for an adjustment on the following February 1that period. In the event Contractor fails to timely request a price adjustment, Enterprise Services, at its sole discretion, may allow an untimely adjustment; Provided, however, that such adjustment will not be effective for any time prior to Enterprise Services’ price adjustment, and Contractor is in good standing, by reasonably performing Contract obligations, including timely sales reporting and paying vendor management fees as required herein, are eligible for economic adjustments. Price Pricing adjustments will be made in accordance with the average percentage change this clause will be based on changes in the United States seasonally adjusted “Consumer Price Index For All Urban Consumers - Commodities Less Food” (Index) published monthly in the CPI Detailed Report by the U.S. Department of Labor, Bureau of Labor and Statistics (BLS) Produce Price Indices (PPI) below issued for the contract term. Only final published data will be used. PCU332992332992 (Small Arms Ammunitions Manufacturing) Economic adjustment will lag one (1) calendar quarter past the Contract commencement date to allow for publication of BLS data. All calculations for the index shall be based upon the latest version of data published as of December 1st each year. Prices may be adjusted and effective on February 1st of each year. If an index is recoded (i.e., the recoded index is a direct substitute for the prior index according to the BLS), this Contract will use the recoded index, as applicable. If an index becomes unavailable, Enterprise Services shall substitute a proxy index. If there is not a direct substitute, the next higher aggregate index available will be usedStatistics. The economic price adjustment shall will be the percentage difference between Index averages as specified in this paragraph. An index called the variable index will be calculated as follows: New Price = Old Price x by averaging the monthly Indexes from the 12- month interval ending three (Current Period Index/Base Period Index)3) months prior to the beginning of the period being considered for adjustment. The “Current Period Index” This average is then compared to the average of the most recent twelve months of non- preliminary BLS Index valuesmonthly Indexes for the 12-month interval ending October 31, and 2014, called the “Base Period Index” is the average base index. The percentage change (plus or minus) of the twelve months variable index from the base index will be the economic price adjustment for the period being considered for adjustment. The Government will notify the contractor by contract modification specifying the percentage increase or decrease to be applied to invoices for orders placed during the period indicated. The contractor shall apply the percentage increase or decrease against the total price of non-preliminary BLS Index values prior to the Current Period Indexinvoice less reimbursable postage or transportation costs and separately adjusted paper prices. Payment discounts shall be applied after the invoice price is adjusted.