[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR17.109]



[Page 333]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 17_SPECIAL CONTRACTING METHODS--Table of Contents

 

                   Subpart 17.1_Multiyear Contracting

 

Sec. 17.109  Contract clauses.



    (a) The contracting officer shall insert the clause at 52.217-2, 

Cancellation Under Multiyear Contracts, in solicitations and contracts 

when a multiyear contract is contemplated.

    (b) Economic price adjustment clauses. Economic price adjustment 

clauses are adaptable to multiyear contracting needs. When the period of 

production is likely to warrant a labor and material costs contingency 

in the contract price, the contracting officer should normally use an 

economic price adjustment clause (see 16.203). When contracting for 

services, the contracting officer--

    (1) Shall add the clause at 52.222-43, Fair Labor Standards Act and 

Service Contract Act-Price Adjustment (Multiple Year and Option 

Contracts), when the contract includes the clause at 52.222-41, Service 

Contract Act of 1965, as amended;

    (2) May modify the clause at 52.222-43 in overseas contracts when 

laws, regulations, or international agreements require contractors to 

pay higher wage rates; or

    (3) May use an economic price adjustment clause authorized by 

16.203, when potential fluctuations require coverage and are not 

included in cost contingencies provided for by the clause at 52.222-43.